1986-049 Council Resolution - Laserfiche WebLink

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• • • 5.03. The City hereby covenants and agrees with the holders from time to,.time of the -Bonds that it will not take or permit to be taken by any of iti officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take, or cause its officers, employees or agents to take, all affirmative actions within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made appli- cable to the Bonds. 5.04. The bonds of this issue are hereby designated by the City as qualified tax exempt obligations and as a part of its $10,000,000 limita- tion of such obligations within the meaning of Section 902 of the Tax Reform Act of 1986. 5.05. Pending the preparation of definitive Bonds, the Mayor and Clerk- Treasurer may execute, authenticate and deliver a temporary Bond or Bonds which are printed, lithographed, typewritten, mimeographed, or otherwise produced, in any denomination, substantially of the tenor of the definitive Bonds in lieu of which they are issued, in registered form, and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Bond or Bonds may determine, as evidenced by their signing of such Bond or Bonds. If a temporary Bond or Bonds are issued, the City shall cause definitive Bonds to be prepared without unreasonable delay. After the preparation of definitive Bonds, the temporary Bond or Bonds shall be exchangeable for definitive Bonds upon surrender of the temporary Bond or Bonds at the principal office of the Registrar, without charge to the holder. Upon surrender for cancellation of any one or more temporary Bonds the City shall execute and the Registrar shall authenticate and deliver in exchange therefor a like principal amount of definitive Bonds of authorized denominations. Until so exchanged the temporary Bond or Bonds shall in all respects be entitled to the same benefits under this Resolution as definitive Bonds, and interest thereon, when and as payable, shall be paid to the holders of temporary Bonds upon presentation thereof for notation of such payment thereon. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Bisel and upon vote being taken thereon, the following voted in favor thereof: All members and the following voted against: None whereupon said resolution was declared duly passed and adopted.