Ordinance 2010-348 - Laserfiche WebLink

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- SECTION 2.7 INTEREST RATE ADJUSTMENT. The Interest Rate on the 2010 Bond shall be subject to adjustment as follows. Upon the occurrence of a Determination of Taxability, the Interest Rate shall be adjusted to the Taxable Rate, as of and from the date such Determination of Taxability would be applicable with respect to the 2010 Bond (the "Accrual Date"); and (i) the City shall on the next interest payment date pay to the holder, or any former holder, as may be appropriately allocated, an amount equal to the sum of (1) the difference between (A) the total interest that would have accrued on the 2010 Bond at the Taxable Rate from the Accrual Date to the date of the Determination of Taxability, and (B) the actual interest paid by the City on the 2010 Bond from the Accrual Date to the date of Determination of Taxability, and (2) any interest and penalties required to be paid as a result of any additional State of Florida and federal income taxes imposed upon such holder and/or former holder arising as a result of such Determination of Taxability; and (ii) from and after the date of the Determination of Taxability, the 2010 Bond shall continue to bear interest at the Taxable Rate for the period such determination continues to be applicable with respect to the 2010 Bond. This adjustment shall survive payment of the 2010 Bond until such time as the federal statute of limitations under which the interest on the 2010 Bond could be declared taxable under the Code shall have expired. ARTICLE III COVENANTS, FUNDS AND APPLICATION THEREOF SECTION 3.1 2010 BOND NOT TO BE INDEBTEDNESS OF THE CITY. The 2010 Bond shall not be or constitute an indebtedness of the City within the meaning of any constitutional, statutory or other limitation of indebtedness, but shall be secured solely by and payable from the Pledged Revenues and by a covenant by the City to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues lawfully available in each Fiscal Year, amounts sufficient to pay the principal of and interest due on the 2010 Bond in accordance with its terms during such Fiscal Year. No Bondholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City, or taxation in any form of any real property therein, to pay said 2010 Bond or the interest thereon. The pledge of the Pledged Revenues will not constitute a lien upon any property of the City. SECTION 3.2 2010 BOND SECURED BY PLEDGE OF PLEDGED REVENUES. From and after the issuance of the 2010 Bond, and continuing until the payment of the 2010 Bond as to principal and interest, the Pledged Revenues shall continue to be pledged for the prompt payment of principal of and interest on said 2010 Bond. Such pledge of the Pledged Revenues shall be on a parity with any current or future pledge of the Pledged Revenues to secure the repayment of Parity Obligations. The right of the City to issue Parity Obligations shall not be limited by this Ordinance. SECTION 3.3 COVENANTS OF THE CITY. As long as any of the principal of or interest on the 2010 Bond shall be outstanding and unpaid, or until there shall have been set apart in the 2010 Debt Service Fund in accordance with Section 3.6 hereof a sum sufficient to pay, when due, the entire principal of the 2010 Bond remaining unpaid, together with interest accrued and to accrue thereon, the City covenants with the Bondholders as follows: Auth. the Issuance of a Storm water Utility Rev. Bond 13 Series 2010 $3,500,000 MIA 181,312,776v4 7-8-10