Ord 1988-018 - Laserfiche WebLink

Home Browse Search

income and proceeds thereof, so that the lien of the Outstanding Bonds, Bonds or Additional Bonds, when issued, shall at all times be wholly preserved at the cost of the City and without expense to the holders thereof; provided, however, that nothing in this Section contained shall require the City to payor discharge any such tax, assessment or governmental charge so long as the validity thereof be by it in good faith contested. Section 10.08. Surety. The City covenants that each of its officials or employees having custody of funds of the System during acquisition, construction, development, and operation of the System, shan be bonded at all times in an amount at least equal to the total funds in his custody at anyone time. Section 10.09. Federal Tax Matters. (a) The City hereby represents that the proceeds of the Bonds are needed at this time to provide funds in the amounts and for the respective purposes specified in Section 3.01 of this Ordinance; that based on current facts, estimates, and circumstances, it is reasonably expected that final disbursement of the proceeds of the Bonds will occur within three years after the Closing date, that it is not reasonably expected that the proceeds of the Bonds or money deposited in the Interest and Sinking Fund will be used or invested in a manner that would cause the Bonds to be or become "arbitrage bonds," within the meaning of Section 148 of the Code; and that, except for the Interest and Sinking Fund and that portion of the Construction Fund representing capitalized interest with respect to a portion of the Bonds, no other funds or accounts have been established or pledged to the payment of the Bonds. (b) The City will not take any action or fail to take any action with respect to the investment of the proceeds of the Bonds or any other funds of The City, including amounts received from the investment of any of the foregoing, that, based upon the facts, estimates, and circumstances known on the Closing Date, would result in constituting the Bonds "arbitrage bonds," within the meaning of Section 148 of the Code, and the City will not take any deliberate action motivated by arbitrage that would have such result. (c) As provided in Section l48(f)(4)(C) of the Code, the City will not be required to rebate arbitrage earnings, if any, on the proceeds of the Bonds, and in connection therewith the City hereby represents that: (i) the City is a governmental unit with general taxing powers; (i.i) the Bonds are not private activity bonds within the meaning of 14l(a) of the Code; (iii) 95 percent or more of the net proceeds will be used for local governmental activities of the City; and (iv) the aggregate face amount of all tax exempt obligations (other than private activity bonds) issued by the City (and all subordinate entities thereof) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000. (d) The Bonds are hereby designated "Qualified Tax Exempt Obligations" for purposes of Section 265 of the Code. The Bonds are not "private activity bonds" as defined in the Code and neither the City nor any of its subordinate entities, if any, reasonably expect to issue in excess of $10,000,000 aggregate amount of Qualified 2387f -27-