Laserfiche WebLink
to comply will not adversely affect the excludability for federal income tax purposes from gross <br /> income of the interest. <br /> (e) Disposition of Project. The City covenants that the property constituting the Project <br /> will not be sold or otherwise disposed in a transaction resulting in the receipt by the City of cash <br /> or other compensation, unless any action taken in connection with such disposition will not <br /> adversely affect the tax-exempt status of the Bonds. For purpose of the foregoing, the City may <br /> rely on an opinion of nationally recognized bond counsel that the action taken in connection with <br /> such sale or other disposition will not adversely affect the tax-exempt status of the Bonds. For <br /> purposes of the foregoing, the portion of the property comprising personal property and disposed <br /> in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other <br /> compensation. For purposes hereof,the City shall not be obligated to comply with this covenant if <br /> it obtains an opinion that such failure to comply will not adversely affect the excludability for <br /> federal income tax purposes from gross income of the interest. <br /> (f) Reimbursement. This ordinance is intended to satisfy the official intent requirements <br /> set forth in section 1.150-2 of the Treasury Regulations <br /> (g) Written Procedures. Unless superseded by another action of the City, to ensure <br /> compliance with the covenants contained herein regarding private business use, remedial actions, <br /> arbitrage and rebate, the City hereby adopts and establishes the instructions attached hereto as <br /> Exhibit "A" as their written procedures for the Bonds and any other tax-exempt debt or obligation <br /> outstanding or hereafter issued. <br /> Section 5.02. ALLOCATION OF,AND LIMITATION ON,EXPENDITURES FOR <br /> PROJECT. The City covenants to account for the expenditure of sale proceeds and investment <br /> earnings to be used for the purposes described in Section 2.01 of this First Supplement on its books <br /> and records by allocating proceeds to expenditures within 18 months of the later of the date that <br /> (i) the expenditure is made, or (ii) the purposes for which the Bonds are issued have been <br /> accomplished. The foregoing notwithstanding, the City shall not expend sale proceeds or <br /> investment earnings thereon more than 60 days after the earlier of(i) the fifth anniversary of the <br /> delivery of the Bonds, or (ii) the date the Bonds are retired, unless the City obtains an opinion of <br /> nationally recognized bond counsel that such expenditure will not adversely affect the tax-exempt <br /> status of the Bonds. For purposes hereof, the City shall not be obligated to comply with this <br /> covenant if it obtains an opinion that such failure to comply will not adversely affect the <br /> excludability for federal income tax purposes from gross income of the interest. <br /> Section 5.03. DISPOSITION OF PROJECT. The City covenants that the property <br /> financed with the Bonds will not be sold or otherwise disposed in a transaction resulting in the <br /> receipt by the City of cash or other compensation, unless the City obtains an opinion of nationally <br /> recognized bond counsel that such sale or other disposition will not adversely affect the tax-exempt <br /> status of the Bonds. For purposes of the foregoing,the portion of the property comprising personal <br /> property and disposed in the ordinary course shall not be treated as a transaction resulting in the <br /> receipt of cash or other compensation. For purposes hereof, the City shall not be obligated to <br /> comply with this covenant if it obtains an opinion that such failure to comply will not adversely <br /> affect the excludability for federal income tax purposes from gross income of the interest. <br /> 18 <br /> San Marcos I WWSRB 2025 1 111 Supplemental Ordinance <br />