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HomeMy WebLinkAbout0234_233233 Section 8. The Bonds and the Registration Ledger to be printed theron shall be substantially in the forms set forth in Exhibit A, attached hereto, with such appropriate variations, omissions and insertions as are permitted or required by this Resolution. Section 9. The Bonds, together with premium, if any, and interest thereon, shall be and is hereby declared to be a limited obligation of the Corporation payable solely from the revenues and receipts derived from or in connection with the Agreement, and the owners of the Bonds shall have a valid claim for the payment thereof only against the Debt Service Fund and other moneys held by the Bank pursuant to this Resolution and the revenues and receipts drived from or in connection with the Agreement, which revenues and receipts shall be used for no other purpose than to pay the principal installments or, premium, if any, and interest on the Bonds, except as may be otherwise expressly authorized by this Resolution. NEITHER THE STATE, THE CITY OF GEORGETOWN, TEXAS NOR ANY POLITICAL COR- PORATION, SUBDIVISION OR AGENCY OF THE STATE OF TEXAS SHALL BE OBLIGATED TO PAY THE BONDS, THE PREMIUM, IF ANY, OR INTEREST THERON. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF TEXAS, THE CITY OF GEORGETOWN, TEXAS, OR ANY OTHER POLITICAL CORPORATION, SUBDIVISION OR AGENCY THEROF IS PLEDGE TO THE PAYMENT OF THE PRINCIPAL OF OR THE INTEREST ON THE BONDS. Section 10. That there is hereby created and established with the Bank, which is hereby designated and appointed to be a special depository for the Corporation, a special fund to be designated and known as the "Georgetown Industrial Development Corporation Industrial Development Revenue Bonds, Series 1984 (The Old Lodge Building Partnership) "Construction Fund" (herein referred to as the "Construction Fund"), and all proceeds received from the sale of the Bonds shall be deposted in the Construction Fund. Moneys in the Construction Fund shall be expended only for the purposes and in accordance with the provisions of the Agreement, particularly Section 4.3 thereof. The Bank shall keep and maintain adequate records pertaining to the Construc- tion Fund and all disbursements therefrom, and, after the Project has been com- pleted and a certificate of payment of all costs filed as provided in this Sec- tion, the Bank shall deliver a copy of an accounting of the disbursements from the Construction Fund to the User and the Corporation. The completion of the Project and payments aof all costs and expenses incident thereto shall be evidenced by filing with the Corporation and the Bank of a certificate of an Authorized Representative of the User required by Section 4.4 of the Agreement. Any moneys remaining in the Construction Fund oaf ter the filing of the above mentioned certificate by the User shall be applied in accordance with Section 4.4 of the agreement. In the Agreement, the Corporation authorized the User to provide the instructions to the Bank as to the investment and reinvestment of money held as a part of the Construction Fund. Pending payment of the amounts in the Construction Fund, the Bank is hereby directed to invest and reinvest the undisbursed portion of the Constrction Fund promptly upon receipt of, and in accordance with, the instructions of the User. Such investments shall be made only by the Bank, if and to the extent provided by law, in accordance with the provisions of Section 4.5 of the Agreement, which shall mature or be redeemable at the option of the Bank in such amounts and at such times, or shall be readily marketable prior to their 'maturities, so that payments from the Construction Fund may be made to pay the costs of the Project as the same become due and payable. All income and other gain (net of losses) from the investments shall, unless the User shall otherwise direct, be retained in and be credited to the Construction Fund, and any loss (net of gains) shall be charged to such Construc- tion Fund. As and when any amounts invested may be needed for disbursement from the Construction Fund, the Bank shall cause a sufficient amount of such invest- ments to be sold and converted into cash to the credit of the Construction Fund. The User by its execution of the Agreemetn covenants to restrict the investment of moneys in the Construction Fund, or investment earning therefrom, in such manner and to such extent, if any, as may be necessary, after taking into account reasonable expectations at the time the Bonds are delivered to the original purchaser, so that the Bonds will not constitute arbitrage bonds under Section 103(c) of the Code and the regulations prescribed under that section.