Ordinance 1971-386 - Laserfiche WebLink

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Section 3. When said bonds have been duly executed, the City Treasurer is hereby directed to deliver the bonds to the purchaser thereof upon receipt of the agreed purchase price therefor. The proceeds of said bonds shall be used for the pur- pose herein specified and for costs and expenses incidental to the issuance of said bonds and for no other purpose whatever. Neither the purchaser of said bonds, nor the subsequent holder of any of them, shall be responsible for the application or dis- posal by the City or any of its officeis of any of the funds de- rived from the sale thereof. The proceeds of the bonds herein authorized shall be used only for the purposes recited above; PROVIDED, HOWEVER, that any portion of the bond proceeds may be temporarily invested pend- ing such use in securities or obligations which are lawful invest- ments for municipalities in the State of Colorado. The temporary investment of the bond proceeds, or any portion thereof, shall be of such nature and extent, and for such period, that the bonds of the City shall not be or become arbitrage bonds within the meaning of Section 103 (d) of the Internal Revenue Code, and per- tinent regulations, and such proceeds, if so invested, shall be subject to the limitations and restrictions of said Section 103(d) (4), 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. If necessary, the amount of interest on said bonds becoming due on April 1, 1972, shall be advanced from the water fund or any other fund of the City lawfully available therefor. For the purpose of reimbursing said fund and paying the interest accuring on said bonds promptly and as the same be- come due, and providing' for the untimate payment and redemption of - 8 -