Sec. 11.28.11. Procedures.
Bonds including refunding bonds shall be issued according to the following procedures:
(a) The Recovery Zone Steering Committee of the City, acting through the City Administrative Officer, shall submit its recommendations to the Council for the Projects to be awarded Bond allocation. Upon receipt of the recommendations either as submitted or as modified by the Council, the Council shall adopt a resolution or resolutions (each, an “Allocation Resolution” and collectively, if applicable, the “Allocation Resolutions”), which are subject to the approval of the Mayor. If the Mayor disapproves any Allocation Resolution, the Council may override that disapproval by a two-thirds vote of the Council; provided, however, that if the Mayor fails to disapprove an Allocation Resolution within 10 days after its receipt, it shall be deemed to have been approved. An original Allocation Resolution shall apply to any refunding bonds for a Project.
(b) Whenever the Council determines that Bonds which previously received an allocation pursuant to an Allocation Resolution shall be issued to make a loan to finance a Project, or to refund Bonds previously issued, the Council shall adopt a resolution (the “Authorizing Resolution”) which, subject to the approval of the Mayor, authorizes the issuance of Bonds for the applicable Project. If the Mayor disapproves an Authorizing Resolution, the Council may override that disapproval by a two-thirds vote of the whole Council; provided, however, that if the Mayor fails to disapprove the Authorizing Resolution within 10 days after its receipt, it shall be deemed approved.
(c) Any Authorizing Resolution shall specify the maximum amount of debt to be incurred, the maximum term of the Bonds to be issued, which term shall not exceed 30 years, and the maximum rate of interest that the Bonds shall bear, which interest may be either fixed or variable or a combination of them. The Authorizing Resolution shall provide for the issuance of the Bonds pursuant to an indenture or trust agreement which shall, among other things, prescribe the form of the Bonds, and the time and place for payment of the principal and interest on the Bonds, and may provide for events of default and the rights and remedies arising from any defaults, and for the redemption of the Bonds before maturity at determined prices.
(d) Any Authorizing Resolution may contain provisions as to:
(i) the use and disposition of the revenues and receipts arising from the Bonds issued, including the creation and maintenance of reserves;
(ii) any insurance required with respect to any Project or as security for any Bonds and the use and disposition of insurance monies;
(iii) the appointment of one or more banks or trust companies within or outside the state having the necessary trust powers as trustee, custodian, or trustee and custodian for the benefit of the bondholders; and
(iv) the investment of any funds held by such trustee or custodian.
(e) Any Authorizing Resolution may provide that the principal or redemption price of, and interest on, the Bonds shall be secured by a deed of trust, pledge, assignment, security interest, insurance agreement or indenture of trust covering such Projects or loans or deposits for which Bonds are issued. They may contain provisions and agreements to properly safeguard the Bonds.
(f) Bonds may be sold at public or private sale in such manner and upon such terms as may be provided in the Authorizing Resolution. Pending the preparation of definitive Bonds, temporary bonds, interim receipts or certificates in such form and with such provisions as may be provided in the Authorizing Resolution may be issued to the purchaser or purchasers of Bonds. Bonds, temporary bonds, interim receipts or certificates shall be deemed to be securities and negotiable instruments within the meaning and for all purposes of the Uniform Commercial Code of this state, subject to the provisions or registration thereof contained in the Authorizing Resolution.
(g) Bonds issued under this Article may be secured by a pledge of, or lien upon the revenues and receipts derived from or with respect to the Projects or from or with respect to any notes or other obligations with respect to which Bonds have been issued.
(h) Any pledge made to secure Bonds shall be valid and binding from the time when the pledge is made. The revenues and receipts of property or interest in property pledged and thereafter received from the City, a trustee or a custodian shall immediately be subject to a lien of such pledge without any physical delivery thereof or further act, and a 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, a trustee or a custodian irrespective of whether the parties have notice thereof. Neither a resolution nor any instrument by which a pledge is created need be recorded.
(i) Neither the members of Council nor any official or employee of the City nor any person executing the bonds shall be liable personally on such Bonds or be subject to any personal liability or accountability by reason of the issuance of the Bonds.
(j) This Article provides complete and independent authority for the issuance of Bonds (including refunding Bonds) and no action or proceeding other than those required by this article shall be necessary for the valid authorization and issuance of Bonds. The provisions of this article shall be liberally construed to effect its purposes. If any portion of this article is declared illegal, invalid or unenforceable (other than the first paragraph of Section 11.28.10), then such portion of this article, and such illegality, invalidity or unenforceability shall not affect the remaining provisions hereof.
SECTION HISTORY
Article and Section Added by Ord. No. 181,161, Eff. 6-15-10.
