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compute and ascertain a rate and amount of ad valorem tax that will be sufficient to raise and <br />produce the money required to pay the interest on said Certificates as such interest comes due, and <br />to provide and maintain a sinking fund adequate to pay the principal of said Certificates as such <br />principal matures (but never less than 2% of the original amount of said Certificates as a sinking <br />fund each year); and said tax shall be based on the latest approved tax rolls of said City, with full <br />allowances being made for tax delinquencies and the cost of tax collection. Said rate and amount <br />of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property <br />in said City, for each year while any of said Certificates are outstanding and unpaid, and said tax <br />shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest <br />and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on <br />and principal of said Certificates, as such interest comes due and such principal matures, are hereby <br />pledged for such payment, within the limits prescribed by law. <br />(b) The Certificates are additionally secured by a pledge of the revenues of the System <br />that remain after the payment of all maintenance and operation expenses thereof, and all debt <br />service, reserve and other requirements in connection with all of the City's revenue obligations <br />(now or hereafter outstanding) that are secured by a lien on all or any part of the net revenues of <br />the System, constituting "Surplus Revenues". The City shall deposit such Surplus Revenues to the <br />credit of the Interest and Sinking Fund created pursuant to this Section, to the extent necessary to <br />pay the principal and interest on the Certificates. Notwithstanding the requirements of this Section, <br />if revenues are actually on deposit or budgeted for deposit in the Interest and Sinking Fund in <br />advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount <br />of taxes which otherwise would have been required to be levied pursuant to this Section may be <br />reduced to the extent and by the amount of the revenues then on deposit in the Interest and Sinking <br />Fund or budgeted for deposit therein. The City reserves the right, without condition or limitation, <br />to issue other obligations secured in whole or in part by a parity lien on and pledge of the Surplus <br />Revenues, for any purpose permitted by law. <br />(c) Chapter 1208, Government Code, applies to the issuance of the Certificates and the <br />pledge of the taxes and Surplus Revenues granted by the City hereunder, and is therefore valid, <br />effective and perfected. Should State law be amended at any time while the Certificates are <br />outstanding and unpaid, the result of such amendment being that the pledge of the taxes and <br />Surplus Revenues granted by the City hereunder is to be subject to the filing requirements of <br />Chapter 9, Business and Paris Code, in order to preserve to the registered owners of the Certificates <br />a security interest in said pledge, the City agrees to take such measures as it determines are <br />reasonable and necessary under State law to comply with the applicable provisions of Chapter 9, <br />Business and Paris Code and enable a filing of a security interest in said pledge to occur. <br />Section 6. DEFEASANCE OF CERTIFICATES. <br />(a) Any Certificate and the interest thereon shall be deemed to be paid, retired and no <br />longer outstanding (a "Defeased Certificate") within the meaning of this Ordinance, except to the <br />extent provided in subsection (d) of this Section, when payment of the principal of such Certificate, <br />plus interest thereon to the due date (whether such due date be by reason of maturity or otherwise) <br />either (i) shall have been made or caused to be made in accordance with the terms thereof, or (ii) <br />shall have been provided for on or before such due date by irrevocably depositing with or making <br />available to the Paying Agent/Registrar in accordance with an escrow agreement or other <br />instrument (the "Future Escrow Agreement") for such payment (1) lawful money of the United <br />7 <br />