96-045 RES - Laserfiche WebLink

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effectuation or enforcement would (individually or in the aggregate) cause the Bonds to become such "private activity bonds," and to said limited~ ~t~h~he City would and hereby does (solely for the benefit of the ~wners of the Bonds) disavow any and all such provisions, entitlements and enforcements which would or could become so offending. 18. Tax-Exempt Status of the Bonds; Rebate. 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 Bonds, 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 Bonds, and (3) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small-issuer exception amount of $5,000,000. 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 ob!J. gations (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. 19. Desiqnation of Qualified Tax-Exempt Obliqations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b) (3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" 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 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 (e) not more than $!0,000,000 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. 12