2.3a ERMUSR 06-08-2021 - Laserfiche WebLink

Home Browse Search

subject to taxation under the Internal Revenue Code of 1986, as amended (the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. To that end, the Commissionand theCity will comply with all requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds underSection 103 of the Code, including without limitation requirements relating to temporary periods for investmentsandlimitations on amounts invested at a yield greater than the yield on the Bonds 6.02.RebateRequired.The Commissionand the City shall comply withrequirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bondsunder Section 103 of the Code, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations onamounts invested at a yield greater than the yield on theBonds, and (3) the rebate of excess investment earnings to the United States unless the Bondsqualify for an exception to the rebate requirement under the Code and related Treasury Regulations. 6.03.Not Private Activity Bonds. The Commission City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner eaning of Sections 103and 141 through 150 of the Code. 6.04.No Designation ofQualifiedTax-Exempt Obligations. The Bonds have not been -within the meaning of Section 265(b)(3) of the Code. 6.05.Procedural Requirements. TheCommission and theCity will use theirbest efforts to comply with any federalprocedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entry System; Limited Obligation of City. 7.01.DTC.The Bonds will be initially issued in the form of a separate single typewritten orprinted fully registered Bond for each of the maturities set forth in Section 2.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Except as provided in this section, all of the outstanding Bonds will be registered in the registration bookskept by the Registrar in the name of Cede & Co., as nomineeof DTC. 7.02.Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the PayingAgent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the EL185-69-713323.v2 11 46