2.0. ERMUSR 08-29-2018 - Laserfiche WebLink

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LITIGATION Nei'her the City nor the Commission are aware of any threatened or pending litigation affecting the vali.ity of the Bonds or the City's ability to meet its financial obligations. LEGALITY The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of Mi eapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Off cial Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data con iained in this Official Statement and will express no opinion with respect thereto. A legal opinion in sub.tantially the form set out in Appendix I herein will be delivered at closing. TAX EXEMPTION At •losing Kennedy & Graven, Chartered, of Minneapolis, Minnesota, Bond Counsel for the Bonds, will ren.er an opinion that, at the time of their issuance and delivery to the original purchaser, under present fed=ral and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending legi.lation which may have a retroactive effect), the interest on the Bonds is excluded from gross income for .urposes of United States income tax and is excluded, to the same extent, from taxable net income of indi iduals, estates and trusts for Minnesota income purposes, and is not a preference item for purposes of co puting the federal alternative minimum tax (although interest on the Bonds is included in adjusted current earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1, 2018) or the Minnesota alternative minimum tax imposed on individuals, trusts, and esta es. Such interest is subject to Minnesota franchise taxes on corporations (including financial inst tutions) measured by income. No opinion will be expressed by Kennedy & Graven regarding other fed ral or state tax consequences caused by the receipt or accrual of interest on the Bonds or arising with res ect to ownership of the Bonds. Preservation of the exclusion of interest on the Bonds from federal gro s income and state gross and taxable net income, however, depends upon compliance by the City with all equirements of the Internal Revenue Code of 1986, as amended, (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be)excluded from federal gross income and state gross and taxable net income. The City and the Commission will covenant to comply with requirements necessary under the Code to esta.lish and maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation, req irements relating to temporary periods for investments and limitations on amounts invested at a yield gre.ter than the yield on the Bonds. OTHER FEDERAL AND STATE TAX CONSIDERATIONS Pro a erty and Casualty Insurance Companies Pro;serty and casualty insurance companies are required to reduce the amount of their loss reserve ded ction by the applicable percentage of the amount of tax-exempt interest received or accrued during the axable year on certain obligations, including interest on the Bonds. -22- 31