2024-01-18-AGENDA-Special - Laserfiche WebLink

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GUARANTEED BY: NOTICE: Signature(s) must be guaranteed by a member of or participant in the Securities Transfer Agents Medallion Program (STAMP), or in another signature guaranty program recognized by the Trustee. Section 7. The City hereby expressly pledges all of the revenues derived by the City from (a) a 0.5% sales and use tax levied by the City under the authority of Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated and Ordinance No. 2011-12-05 adopted on December 27, 2011, as amended by Ordinance No. 2023-05-02 adopted on May 23, 2023 (the "Bond Tax") and (b) a 0.5% sales and use tax levied by the City under the authority of Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated and Ordinance No. 2011-12- 03 adopted on December 27, 2011 (the "Permanent Tax") to the payment of the principal of and interest on the bonds when due at maturity or at redemption prior to maturity, to the payment of the fees and expenses of the Trustee and other administrative charges, to the maintenance of the debt service reserve at its required level, to the payment of any amounts due the Insurer with respect to the Insurance Policy and to the payment of any arbitrage rebate due the United States under Section 148(f) of the Internal Revenue Code of 1986, as amended (the "Code"). Collections of the Bond Tax are hereby appropriated and shall be used solely to pay the scheduled principal of and interest on the bonds, redeem bonds prior to maturity, pay Trustee's fees and expenses and other administrative charges, pay any amounts due the Insurer with respect to the Insurance Policy, maintain the debt service reserve at its required level and pay any arbitrage rebate due under Section 148(f) of the Code (collectively, "Bond Payments"). Collections of the Permanent Tax shall be used first, if necessary, to make Bond Payments and second, for park and recreational purposes, for public safety purposes and for street purposes (collectively, the "Permanent Tax Uses"). The City covenants that the Bond Tax and the Permanent Tax (collectively, the "Taxes") shall never be repealed or reduced while any of the bonds are outstanding. The City further covenants to use due diligence in collecting the Taxes. Nothing herein shall prohibit the City from increasing the Taxes from time to time, to the extent permitted by law, and no part of the revenues derived from any such increase shall become part of the revenues pledged hereunder. Section 8. (a) The City hereby designates The Citizens Bank, Batesville, Arkansas as the bank which shall receive collections of the Taxes (the "Pledged Revenues") from the State Treasurer, and the City covenants to file a written designation thereof with the State Treasurer prior to the issuance of the bonds. The Trustee shall deposit all Pledged Revenues as and when received into a special fund of the City in the Trustee which is hereby created and designated "Sales and Use Tax Revenue Fund, Series 2024" (the "Revenue Fund"). There is created in the Revenue Fund the following accounts: Bond Account; and Permanent Account. The Pledged Revenues received by the Trustee shall be deposited as follows: Pledged Revenues derived from the Bond Tax shall be deposited into the Bond Account and Pledged Revenues derived from the Permanent Tax shall be deposited into the Permanent Account. (b) Moneys in the Bond Account in the Revenue Fund shall be applied first each month, in the following order of priority: 18