Palm Desert Municipal Code Ch. 17.05 Variable Interest Rate Bonds

As an alternative to any other authority, the city council may, at its discretion, issue bonds bearing a variable interest rate pursuant to this title. This chapter does not alter or restrict authority to authorize contractual assessments or issue bonds pursuant to any other provision of this title or other law in any way. If the city council in its discretion issues bonds bearing a variable interest rate pursuant to this title, all provisions of the title shall apply to the proceedings, except as expressly provided in this chapter.

(Ord. 1175 §1, 2008)

Except as otherwise provided in the trust indenture, interest on all contractual assessments shall run from the date of the bonds, and shall be computed for each interest pay period at the date determined pursuant to the terms of the bond for that interest pay period.

(Ord. 1175 §1, 2008)

The city council may, by resolution, specify that the interest rate on the bonds may vary from time to time as determined by an index or some other means prescribed in the resolution.

(Ord. 1175 §1, 2008)

The city council may, by resolution, specify terms and conditions under which the bonds may be converted to a fixed interest rate or other interest rate mode.

(Ord. 1175 §1, 2008)

The city council may, by resolution, specify terms and conditions under which the city agrees to repurchase the bonds. The city council may secure a letter of credit or other instrument to secure payment or repurchase of any bonds, and the resulting costs thereof, including costs of initially securing, maintaining, or making any payments arising from the exercise of, a letter of credit or other instrument, may be treated as incidental expenses. The city council may engage a remarketing agent and an indexing agent, subject to terms and conditions agreed to by the city council, and the resulting costs may be treated as incidental expenses.

(Ord. 1175 §1, 2008)