Res 1988-007 - Laserfiche WebLink

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141 (a) of the Internal Revenue Code of 1986. as amended. and applicable regulations, published rulings and court decisions (collectively. the "Code"). Accordingly, interest on the Certificates will not be treated as a preference item under the alternative minimum tax provisions of the Code as applicable to individuals and corporations, except that interest on the Certificates will be included in the "adjusted net book income" or the "adjusted current earnings" of certain corporations for purposes of computing the alternative minimum tax and the environmental tax imposed on such corporations. Furthermore, in the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income under Section 103(a) of the Code. The statutes, applicable regulations. published rulings of the Internal Revenue Service and court decisions on which such opinions are based are subject to change. These opinions are dependent in part on future compliance by the City with certain post-issuance requirements of the Code, including the arbitrage rebate requirements. Failure to comply with such requirements may cause the interest on the Certificates to be includable in gross income retroactive to the date of issue. In this connection, various covenants and representations have been made by the City in the documents authorizing the issuance of the Certificates that are designed to provide assurance of compliance with such requirements, and for purposes of these opinions, we assume compliance by the City therewith. In addition such opinions are based upon representations and certifications of the City pertaining to the use, expenditure and investment of the proceeds of the Certificates. Except as described above, we express no opinion with respect to any other federal, state or local tax consequences under present law or proposed legislation resulting from the receipt or accrual of interest on, or the acquisition, ownership or disposition of, the Certificates. Prospective purchasers of the Certificates should be aware that the ownership of tax-exempt obligations such as the Certificates may result in collateral federal tax consequences to, among others, financial institutions, property and casualty insurance companies, certain foreign corporations doing business in the United States, individual recipients of Social Security or Railroad Retirement benefits, taxpayers who may be deemed to have incWTed or continued indebtedness to purchase or carry tax-exempt obligations, stockholders of corporations receiving or accruing tax exempt interest and S corporations with Subchapter C earnings and profi ts. Prospective purchasers should consul t their own tax advisors as to the applicability of these and other such collateral consequences to their particular circumstances. THE OPINIONS CONTAINED HEREIN are limited to the extent that the rights of the registered owners of the Certificates and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights or remedies generally and to the extent that certain equitable remedies, including specific peñormance, may be unavailable. WE HAVE ACTED AS COUNSEL for the City for the sole purpose of rendering an opinion with respect to the legality and validity of the Certificates -2-