HomeMy WebLinkAboutOrdinance 6689 ORDINANCE NO. �aa�
AN ORDINANCE AMENDING ORDINANCE NO. 6678
TO PROVIDE A COVENANT AGAINST ARBITRAGE;
AND PROVIDING THAT THIS ORDINANCE SHALL
BE IN FORCE AND EFFECT FROM AND AFTER THE.
DATE OF ITS PASSAGE.
WHEREAS, Ordinance Number 6678 has heretofore been
passed by this Council; and
WHEREAS, said Ordinance should be amended to
provide a covenant against Arbitrage;
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
SECTION 1.
That Ordinance No. 6678. is hereby amended to
provide a new Section 10-A, to be and read as follows:
"SECTION 10-A.
That the City Council covenants that the proceeds
from the sale of the Bonds will be used as soon as
practicable for the purpose for which the Bonds are issued
and will not be used to acquire, or to replace funds
which were used directly or indirectly to acquire,
securities (within the meaning of Section 165(g) (2) (A)
or (B) of the Internal Revenue Code of 1954, as amended,
(the 'Code')) , or obligations (other than obligations
described in sub-section (a) (1) of Section 103 of the
Code) , which produce a yield which is 'materially higher'
(within the meaning of subsection (d) (2)(A) of Section
103 of the Code) than the yield on the Bonds except for
a temporary period pending such use, to the extent per-
mitted by Section 103(d) (4)(A) of the Code. The City
Council further covenants that such proceeds will not
be used directly or indirectly so as to cause all or any
part of the Bonds to be or become 'arbitrage bonds'
within the meaning of Section 103(d) of the Internal
Revenue Code of 1954, as amended."
SECTION 2.
That this Ordinance shall take effect and be in full
force and effect from and after the date of its passage, and
it is so ordained.
SECTION 3.
That it is officially found and determined that a
case of emergency and urgent public necessity exists which
requires the holding of the City Council meeting at which this
Ordinance is passed, such emergency. or urgent public necessity
being that the Bonds authorized by Ordinance No. 6678 must
be delivered immediately; and that said meeting was open to
the public, and public notice of the time, place and purpose
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of said meeting was given, all as required by Vernon's Civil
Statutes, Article 6252-17.
Mayor of the City of Fort Worth,
Texas
ATTEST:
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City Secretary of the City of
Fort Worth, Texas
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APPROVED S TO FORM AND LEGALIT
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City A torney of the City of
.Fort Worth, Texas
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