Res 1997-094 - Laserfiche WebLink

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45'4Þ the yield on the Lease. The Lessor has represented that the Lease is not being reoffered to the public or other purchasers. 3.4. Use of Net Proceeds at Closing. The Net Proceeds, totaling $ $56,069.33 ITom the sale of the Lease, will be and are anticipated to be expended as set forth in Section 4.2 hereof 4. Temporarv Period. 4.1. The City of San Marcos has entered into substantial binding obligations with third parties for the acquisition of the Equipment obligating expenditures of all of the Net Proceeds of the Lease. ~ Acquisition of the Equipment is expected to be completed no later than December 31 1997. All of the "spendable proceeds" of the Lease as that term is defined in Treasury Regulation Section 1.103-14(b)(2)(iü), will have been expended on or before the aforesaid date. 4.2. The Net Proceeds of the Lease (less accrued interest to be used to pay interest on the Lease on the first payment date) will be used solely to purchase the Equipment and to pay costs of issuance. . . 4.3. The estimated total costs of the Equipment (including costs of issuance) will not be less than $ 56,069.33, which total costs are expected to be financed with the proceeds derived ITom the sale of the Lease. 5. Sinking Funds. The City of San Marcos does not expect to create or establish any sinking fund or similar fund with respect to the Lease. No amounts in any account or funds oftþe City of San" Marcos are reserved or pledged for debt service on the Lease and it is not expected that any such accounts or funds will be used, nor is there any reasonable assurance that any portion of such other accounts or funds will be available to pay debt service if the City of San Marcos encounters financial difficulty. 6. Covenants and Representations. 6.1. Covenant. The City of San Marcos covenants and certifies to and for the benefit of the owners ITom time to time of the Lease that no use will be made of any of the proceeds of the issuance and sale of the Lease or any funds or accounts of the City of San Marcos which may be deemed to be available proceeds of the Lease, pursuant to Section 148 of the Code and applicable regulations (promulgated or - proposed) which use, if it had been reasonably expected on the date of issuance of the Lease, would have caused the Lease to be classified as an "arbitrage bond" within the meaning of Section 148 of the Code. Pursuant to this covenant, the City of San Marcos obligates itself to comply throughout the term of the Lease with the requirements of Section 148 of the Code and the regulations proposed or promulgated thereunder as the same presently exist, or may ITom time to time hereafter be amended, supplemented or revised. The City of San Marcos further represents and covenants that no bonds or other evidences of indebte~ness of the~ of San Marcos have been or will be issued, sold or delivered within a period beginning 31 days prior to the sale of the Lease and ending 31 days following the delivery of the Lease. 2