1984-036 - Laserfiche WebLink

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H. ARBITRAGE. The County does hereby further covenant that no use will be made of the proceeds of the Bonds which would cause the Bonds to be "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and the applicable regulations thereunder. The County, at all times while such Bonds and the interest thereon are outstanding, including refundings thereof, will comply with the requirements of said Section lU3(c) and with the valid and applicable rules 6!01 r and regulations of the Internal Revenue Service thereunder. SECTION 19. RIGHTS OF THE BOND HOLDERS. The Holders of the Bonds shall have no responsibility for the application and use of the proceeds received from the sale thereof and the appli- cation and use of such proceeds by the County shall in no way affect the rights of the Bond Holders. The County shall be irre- vocably obligated, upon receipt thereof, to use the Pledged Revenues and the income from investments pledged hereunder to pay the principal of and interest on the Bonds and to make all reserve and other payments provided for herein, notwithstanding any failure of the County to apply such Bond proceeds in the manner provided herein. SECTION 20. DEFEASANCE. If, at any time, the County shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds, then, and in that event, the pledge of and lien on the Pledged Revenues and the income from investments in favor of the Holders of the Bonds shall be no longer in effect_. For pur- poses of the preceding sentence, deposit of Federal Securities or bank certificates of deposit fully secured as to principal and interest by Federal Securities (or deposit of any other securities or investments which may be authorized by law from time to time and sufficient under such law to effect such a defeasance) in irrevocable trust with a banking institution or trust company, for the sole benefit of the Holders of such Bonds, in an amount such that the principal of and interest on such securities or certifi- -30-