§ 43.11.3. AUTHORIZATION OF SHORT-TERM INDEBTEDNESS.

(a) When the Board deems it in the best interests of the City, the Board may authorize the issuance, upon such terms and conditions as it may determine, of notes or other obligations ("Short-Term Indebtedness "), maturing within a period not to exceed five years of its date of issuance (or of the date of issuance of any refunded Short-Term Indebtedness), in anticipation of the sale of general obligation bonds ("Bonds") which have been approved by the voters and authorized for issuance by the Board at the time such Short-Term Indebtedness is issued.

(b) The proceeds from the sale of the Short-Term Indebtedness shall be used only for the purposes for which the Bonds were approved by the voters, together with the costs of issuing such Short-Term Indebtedness.

(c) All Short-Term Indebtedness issued and any renewal or refunding thereof shall be payable solely from the proceeds of the sale of the Bonds, provided that (i) all or a portion of the principal and interest on such Short-Term Indebtedness may be payable from the levy of the tax authorized by the voters if authorized by the Board or required by law; (ii) interest payable on the Short Term Indebtedness may be payable from the proceeds of such Short Term Indebtedness if authorized by the Board, and (iii) in the event that the sale of the Bonds shall not have occurred prior to the maturity of the Short-Term Indebtedness issued in anticipation of the sale, the Director, in order to meet the Short-Term Indebtedness then maturing, shall issue refunding Short-Term Indebtedness for such purpose. No refunding of Short-Term Indebtedness shall be issued after the sale of Bonds in anticipation of which the original Short-Term Indebtedness was issued.

(Added by Ord. 5-09, File No. 081523, App. 1/16/2009)