Ordinance 1978-584 - Laserfiche WebLink

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Sect ion 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 of the funds derived from the sale thereof~ Allor 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 port ion 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 l03(c) of the Internal Revenue Code, and pertinent regulations, and such proceeds, if so invested or reinvested, shall be subject to the limitations and restrictions of said Section l03(c), as the same now exists or may later be amended, and shall further be subject to any applicable regulations of the Internal Revenue Service. Section 4. PAYMENT OF PRINCIPAL AND INTEREST. If -------------------------- necessary, the interest. to become due on said bonds on October 1, 1978, 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, direct annual taxes in each of the years 1978 to 1989, inclusive, sufficient to make such reimbursement and to pay the principal of and interest on the outstanding bonds as the same become due and payable.. Said taxes when collected shall be depos i ted in a spec ial account to be known as the "Ci ty of Louisville Water Bond Account, 1978", and such account shall be applied solely to the purpose of the payment of the interest on and the principal of the bonds and for no other purpose whatever, until the indebtedness so contracted under this Ordinance, both principal and interest, shall have been fUlly paid, satisfied and discharged. Nothing herein contained shall be so construed as to prevent the City from applying any other funds or revenues that may be in the City treasury and available for that purpose, to the payment of the interest or principal, as the same respectively mature, and upon any such payments, the levy or levies herein provided may thereupon be diminished to that extent. - 7 -