Ordinance 1981-725 - Laserfiche WebLink

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Section 3. Disposition of Bond Proceeds. Said bonds, when executed as provided by law, shall be delivered to the purchaser thereof in accordance with its contract of purchase. The proceeds of the bonds herein authorized shall be used only for the purpose of paying the costs and expenses of supplying the City of Louisville with water and for no other purpose whatever. Neither the purchaser of the bonds nor the subsequent holder of any of them shall be responsible for the application or disposal by the City, or any of its officers, of any 0 f the funds derived from the sale thereof. All or any appropriate portion of the bond proceeds may be temporarily invested or reinvested pending such use in secu- rities or obligations which are lawful investments for such cities in the State of Colorado. It is hereby covenanted and agreed by the City that the temporary investment or reinvestment of the bond proceeds, or any portion thereof, shall be of such nature and extent, and for such period, that the bonds shall not be or become arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and pertinent regulations, and such proceeds, if so invested or reinvested, shall be subject to the limitations and restrictions of said Section 103(c), and pertinent regulations as the same now exists or may later be amended. Section 4 . Payment of Principal and Interest. If necessary, the interest to become due on said bonds on August 1 , 1982, shall be advanced from the water fund or other funds of the City which are lawfully available therefor. For the purpose of reimbursing said fund, and for paying the interest accruing on the bonds promptly as the same become due, and for providing for the ultimate payment and redemption of the bonds, there shall be levied on all the taxable property in the City, in addition to all other taxes, a general ad valorem tax in each of the years 1981 to 1991, inclusive, sufficient to make such reimbursement and to pay the principal of and interest on the outstanding bonds as the same - 7 -