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<br />e <br /> <br />that the Bonds do not qualify for available exceptions. In <br />calendar year 1994, the City does not expect to qualify for the <br />$5,000,000 "small issuer! exception to the federal arbitrage <br />rebate requirements. <br /> <br />22. Desianation of Cualified Tax-Exemot Obliaation~. <br />In order to qualify the Sonds as "qualified tax-exempt <br />obligations" within the meaning of Section 265(b) (3) of the Code, <br />the City hereby makes the following factual statements and <br />representations: <br /> <br />(a) the Bonds are issued after August 7, 1986; <br /> <br />e <br /> <br />(b) the Bonds are not "private activity bonds" as <br />defined in Section 141 of the Code; <br /> <br />(c) the City hereby designates the Bonds as "qual,ified <br />tax-exempt obligations" for purposes of Section 265 (b) (3) of <br />the Code; <br /> <br />(d) the reasonably anticipated amount of tax-exempt <br />obligations (other than private activity bonds, treating <br />qualified 501(c) (3) bonds as not being private activity <br />bonds) which will be issued by the City (and all entities <br />subordinate to, or treated as one issuer with, the City) <br />during calendar year 1994 will not exceed $10,000,000; and <br /> <br />(e) not more than $10,000,000 of obligations issued or <br />to be issued by the City during calendar year 1994 have been <br />designated for purposes of Section 265(b) (3) of the Code. <br /> <br />The City shall use its best efforts to comply with any federal <br />procedural requirements which may apply in order to effectuate <br />the designation made by this paragraph. <br /> <br />23. Defeasance. When any obligation of a Bond has <br />been discharged as provided in this paragraph, all pledges, <br />covenants and other rights granted by this Resolution to the <br />registered owner of that Bond (with respect to the obligation <br />thereof so defeased) shall, to the extent permitted by law, <br />cease. The City may at any time discharge any or all of such <br />obligation(s) with respect to any Bond, subject to the provisions <br />of law now or hereafter authorizing or regulating such action, by <br />depositing irrevocably in escrow, with a suitable institution <br />qualified by law as an escrow agent for this purpose, cash or <br />securities which are backed by the full faith and credit of the <br />United States of America, bearing interest payable at such times <br />and at such rates and maturing on such dates and in such amounts <br />as shall be required and sufficient, subject to sale and/or <br />reinvestment in like securities, to pay said obligation(s), which <br /> <br />e <br /> <br />264048.1 <br /> <br />18 <br />