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 on or for their payment. 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, if any,
or interest on this bond.
(Prior code § 9-573)
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 § 9-574)
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 executed in such manner, be payable in
lawful money of the United States of America at such place or places,
be subject to such terms 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.
(Prior code § 9-575)
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 bonds, the terms upon which additional
bonds may be issued and secured, and the refunding of outstanding
bonds;
D.
The
setting aside of reserves and sinking funds and such other funds as
are necessary or appropriate and the regulation and disposition thereof;
E.
The
pledge or assignment of all or any part of the revenues and of any
other moneys or assets legally available therefor (including loans,
deeds of trust, mortgages, leases, subleases, sales agreements and
other contracts and security interests) 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;
G.
Specification
of the acts or omissions to act which shall constitute a default in
the duties of the City 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, leases, subleases, sales agreements, and any
other contracts or security interests 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 § 9-576)
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 § 9-577)
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 § 9-578)
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 § 9-579)
Any holder of bonds issued under the provisions of this chapter,
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 § 9-580)
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 in 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.
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 § 9-581)
In anticipation of the sale of bonds, the City may issue bond
anticipating notes and may renew the same from time to time. Such
notes shall be payable from any revenues or other moneys authorized
by this chapter to be pledged to secure payment of bonds which are
not otherwise pledged, or from the proceeds of sale of the bonds in
anticipation of which they were issued. Such notes shall be issued
in the same manner as bonds. Such notes and the resolution or indenture
providing for their issuance may contain any provisions, conditions,
or limitations which a bond, or a resolution or indenture providing
for the issuance thereof, may contain.
(Prior code § 9-582)
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 approval of any financing or 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 § 9-583)
