02 GO Refunding Bond Ordinance - Laserfiche WebLink

Home Browse Search

(c) No Default Occurred. Not~vithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred xvhich is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (xvithout surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemmty is fumished as above provided in this Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the registered oxvner of such Bond xvith all legal, printing, and other expenses in connection therexvith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer xvhether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately xvith any and all other Bonds duly issued under this Ordinance. (e) Authori _ty for Issuing Replacement Bonds. In accordance xvith Chapter 1207, Texas Government Code, this Section 10 of this Ordinance shall constitute authority for the issuance of any such replacement bond xvithout necessity of further action by the goveming body of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and xvith the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 11. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS: BOND COUNSEL'S OPINION' CUSIP NUMBERS' AND CONTINGENT INSURANCE PROVISION, IF OBTAINED. The Mayor of the Issuer is hereby authorized to have control of the Initial Bond issued hereunder and all necessary records and proceedings pertaining to the Initial Bond pending its delivery and its investigation, examination, and approval by the Attomey General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond said Comptroller of Public Accounts (or a deputy designated in xvriting to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond. The approving legal opinion of the Issuer's bond counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Bond or any Bonds issued and delivered in conversion of and exchange or replacement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered oxvners of the Bonds. In addition, if bond insurance is obtained, the Bonds may bear an appropriate legend as provided by the Insurer. Section 12. COVENANTS REGARDING TAX EXEMPTION. The Issuer covenants to refrain from taking any action xvhich xvould adversely affect, and to take any required action to ensure, the treatment of the Bonds as obligations described in Section 103 of the Intemal Revenue Code of 1986, as amended (the "Code"), the interest on xvhich is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as folloxvs: (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds or the projects financed therexvith (less amounts deposited to a reserve fund, if any) are used for any "private business use," as defined in Section 141(b)(6) of the Code or, if more than 10 percent of the proceeds or the 20