B.
Every
issue of bonds shall be a limited obligation of the city payable from
all or any specified part of the revenues and the moneys and assets
authorized in this chapter to be pledged or assigned to secure payment
of bonds. Such revenues, moneys or assets shall be the sole source
of repayment of such issue of bonds. Bonds issued under the provisions
of this chapter shall not be deemed to constitute a debt or liability
of the city or a pledge of the faith and credit of the city but shall
be payable solely from specified revenues, moneys and assets. The
issuance of bonds shall not directly, indirectly or contingently obligate
the city to levy or pledge any form of taxation or to make any appropriation
for their payment.
C.
All
bonds shall contain on the face thereof a statement to the following
effect:
Neither the faith and credit nor the taxing power of the City
is pledged to the payment of the principal of, or premium or interest
on this bond.
(Prior code § 29-13)
In determining the amount of bonds to be issued, the city may
include all costs of the issuance of such bonds, reserve funds and
capitalized bond interest.
(Prior code § 29-14)
Bonds may be issued as serial bonds, term bonds, installment
bonds or pass-through certificates or any combination thereof. Bonds
shall be authorized by resolution of the council and shall bear such
date or dates, mature at such time or times, bear interest at such
fixed or variable rate or rates, be payable at such time or times,
be in such denominations, be in such form, either coupon or registered,
carry such registration privileges, be executed in such manner, be
payable in lawful money of the United States of America at such place
or places, be subject to such times of redemption and have such other
terms and conditions as such resolution or any indenture authorized
by such resolution to be entered into by the city may provide. Bonds
may be sold at either a public or private sale and for such prices
as the city shall determine. Pending preparation of definitive bonds,
the city may issue temporary bonds, which shall be exchanged for such
definitive bonds when prepared.
(Prior code § 29-15)
Any resolution authorizing any bonds or any issue of bonds,
or any indenture authorized by such resolution to be entered into
by the city, may contain provisions respecting any of the following
terms and conditions which shall be a part of the contract with the
holders of such bonds:
A.
The
terms, conditions and form of such bonds and the interest and principal
to be paid thereon;
B.
Limitations
on the uses and purposes to which the proceeds of sale of such bonds
may be applied, and the pledge or assignment of such proceeds to secure
the payment of such bonds;
C.
Limitations
on the issuance of additional parity bonds, the terms upon which additional
parity bonds may be issued and secured, and the refunding of outstanding
bonds;
D.
The
setting aside of reserves, sinking funds and such other funds as are
necessary and the regulation and disposition thereof;
E.
The
pledge or assignment of all or any part of the revenues and the use
and disposition thereof, subject to such agreements with the holders
of bonds as may then be outstanding;
F.
Limitation
on the use of revenues for expenditures for operating, administration
or other expenses of the city or a participating health institution;
G.
Specification
of the acts or omissions to act which shall constitute a default in
the duties of the city or a participating health institution to holders
of such bonds, and providing the rights and remedies of such holders
in the event of default; including any limitations on the right of
action by individual bondholders;
H.
The
appointment of a corporate trustee to act on behalf of the city and
the holders of its bonds, the pledge or assignment of loans, deeds
of trust, mortgages and any other contracts to such trustee, and the
rights of such trustee;
I.
The
procedure, if any, by which the terms of any contract with bondholders
may be amended or abrogated, the amount of such bonds the holders
of which must consent thereto, and the manner in which such consent
may be given; and
J.
Any
other provisions which the council may deem reasonable and proper
for the purposes of this chapter and the security of the bondholders.
(Prior code § 29-16)
Any pledge of revenues or other moneys or assets pursuant to
the provisions of this chapter shall be valid and binding from the
time such pledge is made. Revenues, moneys and assets so pledged and
thereafter received by the city shall immediately be subject to the
lien of such pledge without any physical delivery thereof or further
act, and the lien of any such pledge shall be valid and binding as
against all parties having claims of any kind in tort, contract, or
otherwise against the city, irrespective of whether such parties have
notice thereof. Neither the resolution nor any indenture by which
a pledge is created need be filed or recorded except in the records
of the city.
(Prior code § 29-17)
Neither the members of the council, the officers or employees
of the city, nor any person executing any bonds shall be liable personally
on the bonds or be subject to any personal liability or accountability
by reason of the issuance thereof.
(Prior code § 29-18)
The city shall have the power out of any funds available therefor
to purchase its bonds. The city may hold, pledge, cancel or resell
such bonds, subject to and in accordance with agreements with the
bondholders.
(Prior code § 29-19)
Any holder of bonds issued under the provisions of this chapter
or any of the coupons appertaining thereto, and any trustee appointed
pursuant to any resolution authorizing the issuance of bonds, except
to the extent the rights thereof may be restricted by such resolution
or any indenture authorized thereby to be entered into by the city,
may, either at law or in equity, by suit, action, mandamus, or other
proceedings, protect or enforce any and all rights specified in law
or in such resolution or indenture, and may enforce and compel the
performance of all duties required by this chapter or by such resolution
or indenture to be performed by the city or by any officer, employee
or agent thereof, including the fixing, charging and collecting of
rates, fees, interest and charges authorized and required by the provisions
of such resolution or indenture to be fixed, charged and collected.
(Prior code § 29-20)
A.
The
city may issue bonds for the purpose of refunding any bonds then outstanding
including the payment of any redemption premiums thereof and any interest
accrued or to accrue to the earliest or any subsequent date or dates
of redemption, purchase or maturity of such bonds.
B.
The
proceeds of bonds issued for the purpose of refunding any outstanding
bonds may, in the discretion of the city, be applied to the purchase
or retirement at maturity or redemption of such outstanding bonds,
either at their earliest or any subsequent redemption date or dates
or upon the purchase or retirement at the maturity thereof and may,
pending such application, be placed in escrow, to be applied to such
purchase or retirement at maturity or redemption on such date or dates
as may be determined by the city.
C.
Pending use for purchase, retirement at maturity or redemption of outstanding bonds, any proceeds held in escrow pursuant to subsection B of this section may be invested and reinvested as provided in the resolution or indenture. Any interest or other increment earned or realized on any such investment may be applied to the payment of the outstanding bonds to be refunded or to the payment of interest on the refunding bonds. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and any interest or increment earned or of such proceeds and any interest or increment earned or realized from the investment thereof may be returned to the city to be used by it for any lawful purpose.
D.
All
bonds issued pursuant to this section shall be subject to the provisions
of this chapter in the same manner and to the same extent as other
bonds issued pursuant to this chapter.
(Prior code § 29-21)
The validity of the authorization and issuance of any bonds
is not dependent on and shall not be affected in any way by any proceedings
taken by the city for the making of any loan or the entering into
of any agreement, or by the failure to make any loan or enter into
any agreement, for which bonds are authorized to be issued under this
chapter.
(Prior code § 29-22)
