Res 1997-094 - Laserfiche WebLink

Home Browse Search

45"4 £: 6.2. Listing. Neither the City of San Marcos nor the City Council has been listed or advised of any proposed listing of the City of San Marcos or the City Council in the Internal Revenue Bulletin or otherwise by the Commissioner of Internal Revenue as an issuer that may not certify its bonds. 6.3. No Private Business Use. In order to preserve the status of the Lease as other than "private activity bonds" as described in Sections 103(b)(1) and 141 of the Code, throughout the term of the Lease: (a) none of the proceeds from the Lease or the Equipment financed therewith shall be used for any "private business use" as that term is used in Section 141(b) of the Code and defined in Section 141(b)(6) of the Code; (b) the City of San Marcos will not allow any such "private business use" to be made of the proceeds ofthe Lease or the Equipment financed therewith; and ~ the Lease shall not be secured, in whole or in part, ¡ directly or indirectly, by any interest in any property used in any such "private business use" or by payments . in respect of such property, and shall not be derived from payments in respect of such property. 7. Lease Not Federally Guaranteed. The payment of principal of or interest on the Lease is not guaranteed, directly or indirectly, in whole or in part, by the United States or any agency or instrumentality thereof, and none of the proceeds of the Lease will be used in making loans, the payment of principal or interest with respect to which are to be guaranteed, in whole or in part, by the United States or any agency or instrumentality thereot: or invested, directly or indirectly, in federally insured deposits or accounts. The Lease is therefore not federally guaranteed within the meaning of Section 149(b) of the Code. 8. Reporting Requirements. In compliance with Section 149( e) of the Code, relating to information reporting, the City of San Marcos will cause to be filed with the Internal Revenue Service such information as shall be required thereby. . 9. Bank Deductibilitv. Pursuant to Section 265 of the Code, the City of San Marcos has designated this Lease as a "qualified tax-exempt obligation". The City of San Marcos reasonably anticipates that the total amount of tax-exempt obligations (other than obligations described in Section 265(b)(3)(C) of the Code) which will be issued by the City of San Marcos and by any aggregated issuer during the current calendar year will not exceed $10,000,000.00. For purposes of this Section 9, "aggregated issuer" means any entity which (a) issues obligations on behalf of the City of San Marcos, (b) derives its issuing authority from the City of San Marcos, or ( c) is subject to substantial control by the City of San Marcos. The City of San Marcos hereby represents that (i) it has not created, does not intend to create, and does not expect to benefit I from any entity formed or availed of to avoid the purposes. of Section 265(b)(3)(C) or (D) of the Code, and - (ü) the total amount of obligations issued by the City of San Marcos and all aggregated issuers for the current calendar year does not exceed $10,000,000.00. 10. Arbitrage Rebate Exemption. All of the gross proceeds of the Lease (less $-0- accrued interest to be used to pay interest on the Lease on the first payment date) are reasonably expected to be expended on or before Dee. 31, 1997, the date hereof for the purposes set forth herein. Therefore? it is reasonably expected that no amounts which are required under Section 148(t) of the Code to be paid to the United States will be earned from the investment of the gross proceeds received from the sale of the Lease. In addition, pursuant to Section 148(t)(4) of the Code, the Lease shall be treated as meeting the requirements of Section 148(t)(2) of the Code. In addition, for the purpose of qualifying for the exception contained in Section 148(t)(4)(D) of the Code from the requirement to rebate arbitrage earnings from investment of proceeds of the Lease the undersigned certify as follows: 3