Laserfiche WebLink
and hereby does (solely for the benefit of the owners of the Bonds) disavow any and <br />all such provisions, entitlements and enforcements which would or could become so <br />offending. <br /> <br />21. <br /> <br />Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements <br />necessary under the Code to establish and maintain the exclusion from gross income <br />under Section 103 of the Code of the interest on the Bonds, including without <br />limitation (1) requirements relating to temporary periods for investments, (2) <br />limitations on amounts invested at a yield greater than the yield on the Bonds, and <br />(3) the rebate of excess investment earnings to the United States if the Bonds <br />(together with other obligations reasonably expected to be issued and outstanding at <br />one time in this calendar year) exceed the small-issuer exception amount of <br />$5,000,000, or do not otherwise qualify for available exceptions. For purposes of <br />qualifying for the small-issuer exception to the federal arbitrage rebate requirements, <br />the City hereby finds, determines and declares that (1) the Bonds are issued by a <br />governmental unit with general taxing powers, (2) no Bond is a private activity bond, <br />(3) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be used <br />for local governmental activities of the City (or of a governmental unit the <br />jurisdiction of which is entirely within the jurisdiction of the City), and (4) the <br />aggregate face amount of all tax-exempt bonds (other than private activity bonds) <br />issued by the City (and all entities subordinate to, or treated as one issuer with, the <br />City) during the 2000 calendar year is not reasonably expected to exceed $5,000,000, <br />all within the meaning of Section 148(f)(4)(D) of the Code. <br /> <br />22. <br /> <br />Designation of Qualified Tax-Exempt Obligations. The City hereby designates the <br />Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) <br />of the Code and hereby states that: <br /> <br /> (a) the reasonably anticipated amount of tax-exempt obligations (other <br />than private activity bonds, treating qualified 501(c)(3)bonds as not being private <br />activity bonds) which will be issued by the City (and all entities subordinate to, or <br />treated as one issuer with, the City) during calendar year 2000 is not reasonably <br />anticipated to exceed $10,000,000; and <br /> <br /> (b) not more than $10,000,000 of obligations issued by the City (or any <br />entity subordinate to, or treated as one issuer with, the City) during calendar year <br />2000 have been 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 procedural <br />requirements which may apply in order to effectuate the designation made by this <br />paragraph. <br /> <br />1217682.1 2 1 <br /> <br /> <br />