General Obligation Pledge. Pursuant to the Constitution and laws of the Commonwealth of Kentucky, particularly Section 66.011 et seq. of the Kentucky Revised Statutes, as amended (the “General Obligation Act”), the obligation of the Lessee created by the Lease shall constitute a full general obligation of the Lessee and, for the prompt payment of the Lease Rental Payments under and as defined in the Lease, the full faith, credit, and revenue of the Lessee are hereby pledged. During the period the Lease is outstanding, there shall be and there hereby is levied on all the taxable property in the Lessee, in addition to all other taxes, without limitation as to rate, a direct tax annually in an amount sufficient to pay the Lease Rental Payments under the Lease as and when due, it being hereby found and determined that the current tax rates of the Lessee are within all applicable limitations. The tax shall be and is hereby ordered computed, certified, levied, and extended upon the tax duplicate and collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of the years are certified, extended, and collected. The tax shall be placed before and in preference to all other items and for the full amount thereof; provided, however, that in each year, to the extent that the other taxes of the Lessee are available for the payment of the Lease Rental Payments under the Lease and are appropriated for such purpose, the amount of such direct tax upon all of the taxable property in the Lessee shall be reduced by the amount of such other taxes so available and appropriated. There is hereby established with the Lessee a sinking fund (the “Sinking Fund”). The funds derived from the tax levy hereby required or other available taxes shall be placed in the Sinking Fund and, together with interest collected on the same, are irrevocably pledged for the payment of all bonds or other obligations issued under the General Obligation Act and all Tax-Supported Leases, as defined in the General Obligation Act, including the Lease authorized herein, as and when the same fall due. Amounts shall be transferred from the Sinking Fund to the Lessor at the times and in the amounts required by the Lease.
General Obligation Pledge. (a) The Note constitutes a direct general obligation of the City for the payment of which as to both principal and interest the full faith and credit and unlimited taxing power of the City is irrevocably pledged pursuant to the Resolutions. The Note shall evidence and secure the Loan. In accordance with the provisions of Tennessee Code Annotated, Section 9-21-504, adequate provision will be made for raising annually by tax upon all property subject to taxation by the City of a sum sufficient to pay the interest on and principal of the Note as the same shall become due. The City shall ensure that a tax sufficient to pay when due such principal and such interest on the Note shall be levied annually and assessed, collected and paid in like manner with the other taxes of the City and shall be in addition to all other taxes authorized or limited by law. The Note is a bond anticipation note issued pursuant to Section 9-21-501, et seq., Tennessee Code Annotated.
General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the County shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the County which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein.
