02 GO Refunding Bond Ordinance - Laserfiche WebLink

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Section 8. TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the Issuer at an official depository bank of the Issuer. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the Issuer, and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year xvhile any of the Bonds or interest thereon are outstanding and unpaid, the govemmg body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax xvhich xvill be sufficient to raise and produce the money required to pay the interest on the Bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds as such principal matures (but never less than 2% of the original principal amount of the Bonds as a sinking fund each year). Said tax shall be based on the latest approved tax rolls of the Issuer, xvith full alloxvance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem ~x is hereby levied, and is hereby ordered to be levied, against all taxable property in the Issuer for each year xvhile any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment, xvithin the limit prescribed by lmv. Chapter 1208, Government Code, applies to the issuance of the Bonds and the pledge of the taxes granted by the Issuer under this Section, and is therefore valid, effective, and perfected. Should Texas lmv be amended at any time xvhile the Bonds are outstanding and unpaid, the result of such amendment being that the pledge of the taxes granted by the Issuer under this Section is to be subject to the filing requirements of Chapter 9, Business & Commerce Code, in order to preserve to the registered oxvners of the Bonds a security interest in said pledge, the Issuer agrees to take such measures as it determines are reasonable and necessary under Texas lmv to comply xvith the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing of a security interest in said pledge to occur. Section 9. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") xvithin the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section, xvhen payment of the principal of such Bond, plus interest thereon to the due date (xvhether such due date be by reason of maturity or otherxvise) either (i) shall have been made or caused to be made in accordance xvith the terms thereof, or (ii) shall have been provided for on or before such due date by irrevocably depositing xvith or making available to the Paying Agent/Registrer in accordance xvith an escroxv agreement or other instrument (the "Future Escroxv Agreement") for such payment (1) lmvful money of the United States of America sufficient to make such payment or (2) Defeasance Securities that mature as to principal and interest in such amounts and at such times as xvill insure the availability, xvithout reinvestment, of sufficient money to provide for such payment, and xvhen proper arrangements have been made by the Issuer xvith the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Defeasance Securities. 18