Ord 2007-007 - Laserfiche WebLink

Home Browse Search

(c) The CIty understands that the term "proceeds" mcludes "dIspOSItion proceeds" as defined m the Treasury Regulations and, m the case ofrefundmg bonds, transferred proceeds (If any) and proceeds of the refunded bonds expended pnor to the date of Issuance of the CertIficates It IS the understandmg of the CIty that the covenants contamed herem are mtended to assure complIance wIth the Code and any regulatIOns or rulings promulgated by the U S Department of the Treasury pursuant thereto In the event that regulatIOns or rulmgs are hereafter promulgated whIch modIfy or expand provIsIOns of the Code, as applIcable to the CertIficates, the CIty wIll not be reqUIred to comply wIth any covenant contained herein to the extent that such faIlure to comply, m the opmIOn of nationally recogmzed bond counsel, will not adversely affect the exemptIOn from federal mcome taxation ofmterest on the CertIficates under sectIOn 103 of the Code In the event that regulatIOns or rulIngs are hereafter promulgated which impose addItIOnal requIrements whIch are applIcable to the Certificates, the CIty agrees to comply wIth the addItIonal requIrements to the extent necessary, m the opimon of nationally recogmzed bond counsel, to preserve the exemptIOn from federal income taxatIOn of mterest on the CertIficates under sectIOn 103 of the Code In furtherance of such mtentIon, the CIty hereby authonzes and dIrects the CIty Manager or DIrector of Finance to execute any documents, certIficates or reports reqUIred by the Code and to make such electIOns, on behalf ofthe CIty, whIch may be permItted by the Code as are conSIstent WIth the purpose for the Issuance of the CertIficates (d) The City covenants to account for the expendIture of sale proceeds and mvestment earnmgs to be used for the purposes described m Section 3 01 of thIS Ordmance (the "Project") on ItS books and records m accordance wIth the reqUIrements of the Code The CIty recogmzes that m order for the proceeds to be consIdered used for the reImbursement of costs, the proceeds must be allocated to expendItures wlthm 18 months of the later of the date that (1) the expendIture IS made, or (2) the Project IS completed, but m no event later than three years after the date on whIch the ongmal expendIture IS paId. The foregomg notwlthstandmg, the CIty recogmzes that m order for proceeds to be expended under the Code, the sale proceeds or mvestment earnmgs must be expended no more than 60 days after the earlIer of (1) the fifth annIversary of the delIvery of the CertIficates, or (2) the date the CertIficates are retIred. The CIty agrees to obtam the advIce of natIOnally- recognized bond counsel if such expendIture fails to comply wIth the foregomg to assure that such expendIture wIll not adversely affect the tax-exempt status of the CertIficates For purposes of this subsectIOn, the CIty shall not be obligated to comply wIth thIS covenant If It obtams an opmIOn of natlonally-recogmzed bond counsel to the effect that such failure to comply will not adversely affect the excludabIlity for federal mcome tax purposes from gross mcome of the mterest. (e) The CIty covenants that the property constItuting the Project wIll not be sold or otherWIse dIsposed in a transaction resultmg m the receIpt by the CIty of cash or other compensatIOn, unless the CIty obtams an opmIOn ofnatIOnally-recogmzed bond counsel that such sale or other dISPOSItion wIll not adversely affect the tax-exempt status of the CertIficates, For purposes of this subsectIOn, the portIOn of the property comprising personal property and dIsposed of m the ordmary course shall not be treated as a transactIOn resultmg in the receIpt of cash or other compensatIOn. For purposes of thIS subsectIOn, the CIty shall not be oblIgated to comply wIth thIS covenant If It obtams an opmIOn of natIOnally-recogmzed bond counsel to the effect that such failure to comply wIll not adversely affect the excludability for federal mcome tax purposes from gross mcome of the mterest. San Marcos C1RCO 2007' Ordinance 27