Res 1998-101 - Laserfiche WebLink

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ARBITRAGE AND TAX CERTIFICATE Lessee: City of San Marcos Lease Schedule No. 1000065894 dated May 15.1998 Lessor: Banc One Leasinq Corporation Escrow Agent: Bank One Trust Company, NA Escrow Agreement dated as of May 15,1998 I, Larry D. Gi 11 ey (Name), hereby certify: that I am the duly qualified and acting Ci t Y M;:¡ni'l §E:'r (Title) of the above identified Lessee ("Lessee"); that Lessee executed and delivered the a ove Lease Schedule and the Master Lease-Purchase Agreement Identified In said Lease Schedule (collectively, the "Lease"); that Lessee is a political subdivision of the State identified in the Lease; and that in my official capacity as such officer I am responsible for executing and delivering, on behalf of the Lessee, the Lease by and between Lessee and the above identified Lessor ("Lessor"). This Certificate is being issued pursuant to Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulations, Sections 1.103-13, 1.103-14, and 1.103-15 (the "Regulations"). The following facts, estimates and circumstances are in existence on the date of this Certificate or are reasonably expect to occur hereafter. 1. The Lease provides for the lease of property (the "Equipment") described in the Lease by Lessor to Lessee. Under the Lease, Lessee is required to make Rent Payments with respect to the Equipment, comprising principal and interest, on the dates and in the amounts stated in the Payment Schedule to the Lease. 2. Pursuant to the Lease and for the purpose of meeting its obligations thereunder and assuring the Lessee of the availability of monies needed to pay the cost of the Equipment when due, Lessee, Lessor and the above identified Escrow Agent ("Escrow Agent") have executed the above identified Escrow Agreement (the "Escrow Agreement"). 3. Contracts or purchase orders providing for the acquisition and delivery of the Equipment have been issued by Lessee to Equipment Vendors therefor and the Equipment will be acquired and installed with due diligence. Based upon the provisions of the contracts or purchase orders, the Equipment will be acquired and installed on or before the following Funding Expiration Date: Funding Expiration Date: November 27, 1998 4. The Escrow Agreement provides that Lessor shall deposit the amount stated below into escrow, to be credited to the Equipment Acquisition Fund created by the Escrow Agreement and utilized to pay for the Equipment as provided therein. Lessor's Deposit into Escrow: $ 671.305.00 It is presently expected that all such funds initially credited to the Equipment Acquisition Fund shall be disbursed to pay for the Equipment, but any such amounts ultimately determined not to be needed for such purposes and the interest earnings on the amounts held in escrow shall be utilized on or after the Funding Expiration Date to pay part of the principal due under the Lease, as provided in the Escrow Agreement. 5. All of the spendable proceeds of the Lease will be expended on the Equipment and related expenses within two years from the date of execution of the Lease and Escrow Agreement. 6. The original proceeds of the Lease, and interest to be earned thereon, do not exceed the amount necessary for the purpose for which the Lease is issued. 7. The interest of Lessee in the Equipment has not been and is not expected during the term of the Lease to be sold or disposed of by Lessee. 8. No sinking fund is expected to be created by Lessee with respect to the Lease and Rental Payments. 9. In the event that: (a) the gross proceeds of the Lease (as defined in Section 148(f) of the Code) are not expended on the Equipment on or before the day which is six months after the date of issuance of the Lease; or