"Bonds" mean bonds or other evidences of indebtedness of the
City which have been or may hereafter be authorized but have not been
issued and sold.
(Prior code § 9-501)
"Note" means a bond anticipation note to be issued upon the
security of funds receivable from the sale of bonds and includes notes.
(Prior code § 9-502)
"Resolution" means the resolution pursuant to which a note is
authorized and issued.
(Prior code § 9-503)
The City Council may borrow money, the indebtedness of which
shall be evidenced by a note.
(Prior code § 9-504)
The issuance of a note shall be authorized by resolution of
the City Council for the City or in its representative capacity.
(Prior code § 9-505)
The resolution shall contain a form of the proposed note to
be issued.
(Prior code § 9-506)
The resolution shall describe the bonds the proceeds of which
shall constitute the source and security for the payment of the note
sufficient to identify them.
(Prior code § 9-507)
A note may be made payable to order or be negotiable and payable
to bearer.
(Prior code § 9-508)
The resolution may provide that the note shall be subject to
call and redemption prior to maturity, at the option of the City,
at a price to be fixed therein and state the manner of giving notice
of redemption to the holder of the note to be redeemed and the price
at which the note shall be subject to redemption. Such note shall
state on its face that it is callable, and no note shall be subject
to prior call or redemption unless it contains such recital.
(Prior code § 9-509)
A bond anticipation note may be issued in such principal amount
as is set forth in the resolution authorizing its issuance, which
may include interest on the notes for their full term; provided, however,
that such note shall not be issued in a principal amount at any time
outstanding which, when added to the interest payable thereon for
the full period of the note, shall exceed 80 percent of the authorized
principal amount of the bonds described in the resolution authorizing
the issuance of the note.
(Prior code § 9-510)
A note may be in any denomination and be payable not later than
five years after its date of issuance.
(Prior code § 9-511)
Except as otherwise provided in this article, a note and the
interest thereon shall be payable solely from the proceeds of the
sale of the bonds and the resolution shall so provide.
(Prior code § 9-512)
The City shall have a mandatory duty to diligently take all
action legally necessary and appropriate to issue and sell the bonds.
(Prior code § 9-513)
The resolution may also contain an assignment of the proceeds
of the sale of the bonds to the holder or owner of the note as security
for the payment of the note and the interest thereon.
(Prior code § 9-514)
The resolution may also provide that the proceeds of the bonds
are pledged to the payment of the note and the interest thereon.
(Prior code § 9-515)
Notwithstanding any other provision in the resolution, or the
absence thereof therein, the note and the interest thereon shall constitute
a first lien upon and charge against the proceeds of the bonds.
(Prior code § 9-516)
A note may be paid from funds which have or will be received
by the City from grants of the State or Federal government, or both,
toward the costs of the public improvements for which the bonds were
authorized; and said funds may be assigned or pledged as additional
security for the payment of the note and the interest thereon.
(Prior code § 9-517)
A note may be paid from other funds of the City, which may be
lawfully appropriated, budgeted or paid therefor; provided, however,
that no assignment or pledge thereof shall be made or be effective
which shall be in violation of any provision of the Constitution or
any law.
(Prior code § 9-518)
No provision in this article as to any other source of payment
of a note or the assignment or pledge thereof shall be construed as
or have the effect of diluting, diminishing or otherwise qualifying
the obligation of the City to pay the note and the interest thereon
from the proceeds of the bonds, or of any assignment or pledge thereof
or the lien thereon, excepting to the extent that said other funds
shall have been used and applied in payment of said note and the interest
thereon.
(Prior code § 9-519)
A bond anticipation note may be issued from time to time as
provided in the resolution authorizing its issuance.
(Prior code § 9-520)
A note shall be executed in the manner provided in the resolution.
(Prior code § 9-521)
The City Council may issue and sell a note as it shall determine
and direct, at public or private sale, at or below its par value and
at a rate of interest not to exceed the rate and shall be payable
at the time or times and in the amount or amounts as provided in the
resolution.
(Prior code § 9-522)
The proceeds of a note may be used and expended by the City
solely for the purposes for which the bonds were authorized.
(Prior code § 9-523)
A note may be refunded by the issuance of a refunding note in
such amount or amounts as the Council may deem necessary to refund
the principal of the note to be so refunded, any unpaid interest thereon,
any discount and funded interest, and issuing expenses.
(Prior code § 9-524)
