Ordinance 2003-1426 - Laserfiche WebLink

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The principal of and interest on this Bond are payable only out of (i) the Bond Account of a special fund of the City created in full conformity with law and designated as the "City of Louisville Sales Tax Capital Improvement Fund" (the "Capital Improvement Fund"), into which the City covenants and agrees to deposit, from the Pledged Revenue (i.e., one-third of the net revenue derived from the City's 3.00% sales tax), amounts sufficient to pay promptly, when due, the principal of, premium if any, and interest on the Bonds; or (ii) if necessary, the Reserve Account of the Capital Improvement Fund, all as more particularly set forth in the Ordinance authorizing the issuance of this Bond (the "Bond Ordinance"). The Bonds of this issue constitute an irrevocable and first lien upon the Capital Improvement Fund, but not necessarily an exclusive first lien. Subject to expressed conditions, obligations in addition to the Bonds of this issue may be issued and made payable from the Capital Improvement Fund having a lien thereon subordinate and junior to the lien of the Bonds of this issue or, subject to additional expressed conditions, having a lien on the Capital Improvement Fund on a parity with the lien of the Bonds of this issue, in accordance with the provisions of the Bond Ordinance. It is hereby recited, certified, and warranted that for the payment of this Bond, the City has created and will maintain the special funds and accounts referred to above, and will deposit therein the Pledged Revenues, and out of said special funds, as an irrevocable charge thereon, will pay the principal of and interest on this Bond in the manner provided by the Bond Ordinance. For a description of such funds and accounts, the Pledged Revenues, the manner in which the Bond Ordinance may be amended, and the nature and extent of the security afforded thereby for the payment of this Bond, reference is made to the Bond Ordinance. THIS BOND IS A SPECIAL LIMITED OBLIGATION OF THE CITY PAYABLE SOLELY FROM THE CAPITAL IMPROVEMENT FUND AND THE PLEDGED REVENUES, DOES NOT CONSTITUTE A DEBT OF THE CITY WITHIN THE MEANING OF ANY CONSTITUTIONAL, HOME RULE CHARTER, OR STATUTORY LIMITATION, AND SHALL NOT BE CONSIDERED OR HELD TO BE A GENERAL OBLIGATION OF THE CITY. It is further hereby recited, certified, and warranted that all the requirements of law have been complied with fully by the proper officers of the City in issuing this Bond. For the purpose of Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended, the City has designated the Bonds as qualified tax exempt obligations. 15