|
(q) "Authorized investments" means any negotiable direct obligations of the United
<br />States, or any negotiable obligations for which the full faith and credit of the United States
<br />are pledged for the payment of principal and interest, or any obligations issued by federal
<br />land banks or federal intermediate credit banks established under the Federal Farm Loan Act,
<br />as amended, bonds or debentures of the Federal Home Loan Bank Board or of any federal
<br />home loan bank established under the Federal Home Loan Bank Act, obligations of the
<br />Federal National Mortgage Association established under the National Housing Act, as
<br />amended, and debentures and consolidated debentures issued by the Central Bank for Coopera-
<br />tives and banks for cooperatives established under the Farm Credit Act of 1933, as amended.
<br />
<br /> Section 2. Equality of Bonds, Pledge o[ Revenues. Pursuant to the Revenue Bond Law of
<br />1941 and this resolution, outstanding bonds shall rank on a parity and shall be equally secured
<br />by a pledge, charge and lien upon the gross revenues of the enterprise without priority for number,
<br />date of bonds, date of sale, date of execution, or date of delivery, and the payment of the interest
<br />on and principal of outstanding bonds and any premiums upon the redemption of any thereof shall
<br />be and are secured by an exclusive pledge, charge and lien upon the gross revenues of the
<br />enterprise, and all of the gross revenues of the enterprise (including revenues of improvements
<br />and extensions later constructed or acquired and revenues of existing systems, plants, works or
<br />undertakings to be acquired, improved or extended or for the acquisition, improvement or
<br />extension of which said bonds are to be issued) are hereby pledged, charged and assigned for the
<br />security of outstanding bonds, and such gross revenues shall constitute a trust fund for the
<br />security and payment of the interest on and principal of outstanding bonds and so long as
<br />any of outstanding bonds or interest thereon are unpaid said gross revenues and interest thereon
<br />shall not be used for any other purpose, except as permitted by this resolution and any subse-
<br />quent resolution, and shall be held in trust for the benefit of the bondholders and shall be applied
<br />pursuant to this resolution, or to this resolution as modified pursuant to provisions herein, and
<br />any subsequent resolution.
<br />
<br /> Nothing in this resolution or in any subsequent resolution shall preclude: (a) the redemption
<br />prior to maturity of any bonds subject to call and redemption and payment of said bonds from
<br />proceeds of refunding bonds issued under said Revenue Bond Law of 1941 as the same now exists
<br />or as hereafter amended, or under any other law of the State of California; (b) the issuance,
<br />subject to the limitations in Covenant 11 in Section 12 hereof, of additional indebtedness evidenced
<br />by revenue bonds, revenue notes or any other evidences of indebtedness payable out of the
<br />revenues of the enterprise and ranking on a parity with said bonds.
<br />
<br /> Section 3. Amount, Issuance, Purpose and Nature of Bonds. That under and pursuant to said
<br />Revenue Bond Law revenue bonds of the city in the amount of $2,000,000 shall be issued for the
<br />purpose stated in the recitals hereof. Said revenue bonds shall be and are special obligations of the
<br />city and shall be and are secured by a pledge of and lien upon, and shall be and are a charge upon,
<br />and shall be and are payable as to the principal thereof and interest thereon and any premiums upon
<br />the redemption of any thereof, solely from the gross revenues of the enterprise, such gross
<br />revenues being hereby pledged, charged and assigned for the security of the bonds.
<br />
<br /> Section 4. No General City Liability. The general fund of the city is not liable for the
<br />payment of the bonds or their interest, nor is the credit or taxing power of the city pledged for the
<br />payment of the bonds or their interest. The holder of the bonds or coupons shall not compel the
<br />exercise of the taxing power by the city or the forfeiture of any of its property. The principal of
<br />and interest on the bonds and any premiums upon the redemption of any thereof are not a debt of
<br />the city nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or
<br />upon any of its income, receipts, or revenues, except the gross revenues of the enterprise which
<br />are, under the terms of this resolution and said Revenue Bond Law, pledged to the payment of
<br />said bonds and interest.
<br />
<br />
<br />
|