6.3.B. SR 06-16-2008 - Laserfiche WebLink

Home Browse Search

to be private activity bonds, and the average term of the Note is not longer than reasonably necessary for its governmental purpose. 18. Tax-Exempt Status of the Note; Rebate; Elections. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion of the interest on the Note from gross income under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Note, and the rebate of excess investment earnings to the United States. If any elections are available now or hereafter with respect to arbitrage or rebate matters relating to the Note, the Mayor, Finance Director, or either of them, are hereby authorized and directed to make such elections as they deem necessary, appropriate or desirable in connection with the Note, and all such elections shall be, and shall be deemed and treated as, elections of the City. 19. Tax-Exempt Status of the MPFA Bonds; Rebate. The City with respect to the Note shall comply with requirements necessary under the Code to establish and maintain the exclusion of the interest on the MPFA Bonds from gross income under Section 103 of the Code, including without limitation (a) requirements relating to temporary periods for investments, (b) limitations on amounts invested at a yield greater than the yield on the MPFA Bonds, and (c) the rebate of excess investment earnings to the United States. The. City covenants and agrees with .the MPFA and holders of the Note that the investments of proceeds of the Note, including the investment of any revenues pledged to the Note which are considered gross proceeds of the MPFA Bonds under the applicable regulations, and accumulated sinking funds, if any, shall be limited as to amount and yield in such manner that the MPFA Bonds shall not be arbitrage bonds within the meaning of Section 148 of the Code and any regulations thereunder. On the basis of the existing facts, estimates and circumstances, including the foregoing findings and covenants, the City hereby certifies that it is not expected that the proceeds of the Note will be used in such manner as tQ cause the MPFA Bonds to be arbitrage bonds under Section 148 of the Code and any regulations thereunder. The Mayor and Finance Director shall furnish a certificate to the MPFA embracing or based on the foregoing certification at the time of delivery of the Notes to the MPFA. The proceeds of the Note will likewise be used in such manner that the Note is not a private activity bond under Section 103(b) of the Code. 20. Designation of Qualified Tax-Exempt Obligation. In order to qualify the Note as a "qualified tax exempt obligation" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Note is issued after August 7, 1986; (b) the Note is not a "private activity bond" as defined in Section 141 of the Code; (c) the City hereby designates the Note as a "qualified tax exempt obligation" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity 2170696v1 1 1