6.0. SR 11-25-1996 - Laserfiche WebLink

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14. The City covenants and agrees with the Registered Owner from time to time of the Certificate that the City will not take or permit to be taken by any of its officers, employees, or agents any action which would cause the interest on the Certificate to become generally subject to taxation under the Internal Revenue Code of 1986, as amended (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 under the Code. 15. 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 Certificate, 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 Certificate, and (3) the rebate of excess investment earnings (if any) to the United States if and to the extent that the Certificate does not qualify for available exceptions. The City does not expect to qualify for the small issuer exception to the federal arbitrage rebate requirements because it is currently expected that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City (and all entities subordinate to, or treated as one issuer with, the City) during the 1996 calendar year will exceed $5,000,000. The City may avail itself of such other exceptions to arbitrage rebate as may be available. 16. The City hereby designates the Certificate as a "qualified tax-exempt obligation" within the meaning of Section 265(b) (3) of the Code and represents that: (a) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c) (3) bonds as not being private activity bonds) which will be issued by the City (and all entities subordinate to, or treated as one issuer with, the City) during calendar year 1996 will not exceed $10,000,000; and (b) not more than $10,000,000 of obligations issued or to be issued by the City during calendar year 1996 have been designated for purposes of Section 265(b) (3) of the Code. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 336657.1 8