4.3. SR 07-27-1998 - Laserfiche WebLink

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2. Compensation; Determination: Expenses. a. As of the date of the sale of each series of the City's bonds in 1998, the City shall direct its Finance Officer to request information to determine, in her reasonable judgment based upon then prevailing market conditions, the differential between the actual interest rates on the non-bank qualified bonds and what interest rates would have been had the City been able to designate the bonds as qualified tax exempt obligations. See attached Bloomberg Fair Market Yield Curves chart and BQ/Non-BQ debt service comparisons which Guardian Angels directed be prepared for illustration purposes. b. The Finance Director shall cause a repayment schedule to be calculated utilizing the interest rates quoted for the qualified tax exempt obligations, and shall compare the total interest amounts due for the two repayment schedules. The (interest) dollar amount difference between the two schedules is the actual differential. c. The Finance Director shall cause, as promptly as possible, a present value calculation to be prepared on the differential utilizing then current yields of U.S. Treasury Bills for the comparable respective maturities. The sum of said present value calculation is the "Compensation Kmount". d. The City's Finance Director shall, as promptly as possible after these calculations are completed, deliver the calculations described above along with the assumptions and supportive documentation gathered during this calculation to FarnhamNovak and Associates, Inc., Financial Advisor to Guardian Angels who will review the calcuiations. e. The City will be promptly notified of agreement or disagreement with the calculations. If there is disagreement, the parties shall meet to discuss the calculations and in good faith resolve any differences and finally agree on the Compensation Amount. f. The express purpose of this Agreement that any Compensation Amounts which are due to the City be paid in such amounts and at such times so that on the date of receipt, the City could invest such amounts in U.S. Treasury Bills to "defease" and provide full payment of the respective interest differentials when due. g. Guardian Angels agrees to pay any reasonable legal, financial advisory or other expenses including any expenses for rebate calculations or continuing disclosure expenses that occur as a result of the Guardian Angels borrowing. h. This Agreement shall be governed by the laws of the State of Minnesota and may be executed in any number of counterparts, each of which shall constitute an original hereof and all of which shall constitute one and the same agreement. IN WITNESS WHEREOF, the City, Guardian Angels have duly executed this agreement by their duly authorized representatives as of the date above. City of Elk River, Minnesota By Guardian Angels of Elk River By By.