RES 05-072 - Laserfiche WebLink

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. . . least 5% in excess of the amount needed to meet, when due, the principal of and interest on the Bonds. 13. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 14. Tax-Exempt Bond Covenants. The City covenants and agrees with the Owners from time to time of the Bonds that the City will not use the proceeds of the Bonds or the Project, or cause or permit the same to be used, in such a manner, and will not take or permit to be taken by any of its officers, employees, or agents any action, which would (a) cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), or (b) cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code, and regulations issued thereunder, as now existing or as hereafter amended or proposed and in effect at the time of such action, and that the City will take, or it will cause to be taken, all affirmative actions within its power which may be necessary to insure that such interest will not become subject to income taxation and that the Bonds will not be private activity bonds under the Code. In particular, but without limitation, the City covenants to forebear the implementation, effectuation or enforcement of any and all contracts or other agreements respecting the Project, or any property benefitted thereby or assessed with respect thereto, which the City may now or in the future have with users, managers, developers, contractors, owners or any other person or parties to the extent that such implementation, effectuation or enforcement would (individually or in the aggregate) cause the Bonds to become such a "private activity bonds," and to said limited extent the City would and hereby does (solely for the benefit of the Owners of the Bonds) disavow any and all such provisions, entitlements and enforcements which would or could become so offending. Without limitation of the foregoing, the City shall not enter into any lease, use agreement, management or operation contract or other agreement respecting the Project which would adversely affect the exemption from federal income tax of the interest on the Bonds, taking into account and observing the requirements of Revenue Procedure 97-13 of the Internal Revenue Service and any similar or other applicable revenue procedures or guidelines relating to leases, management contracts and service contracts involving facilities financed with tax-exempt obligations. 15. Tax Exempt Status of the Bonds: Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment 12