Res 1997-094 - Laserfiche WebLink

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L¡ S-I ¡:: (a) Neither the Lease nor any portion thereof is a "private activity bond" as defined in Section 141 of the Code. (b) Ninety-five percent (95%) or more of the net proceeds of the Lease are to be used for local government activities of the City of San Marcos (or of a governmental unit, the jurisdiction of which is entirely within the jurisdiction of the City Council). For purposes of this Section 10, "aggregated issuer" shall have the same meaning as provided in Section 9 hereof ~ The City of San Marcos has not created, does not intend to create, and does not expect to benefit from , any entity formed or availed of to avoid the purposes of Section 148(f)(4)(D)(ii)(IV) of the Code. , 11. Expectations. 11.1. Use of Proceeds. All proceeds of the Lease have been used as provided in Section 2.1 hereof Accordingly, the proceeds of the Lease will not exceed by more than five percent (5%) the amount necessary for the purpose of the Lease. The Lease is not and will not be part of a transaction or series of transactions that (a) attempts to circumvent the provisions of Section 148 of the Code and the regulations promulgated thereunder (I) enabling the City of San Marcos to exploit the difference between tax-exempt and taxable interest rates to gain a material financial advantage, and (ii) increasing the burden on the market for tax:-exempt obligàtions, or (b) employs a "device" to obtain "a material financial advantage (based on arbitrage) apart from savings attributable to lower interest rates" as those terms are used in Section 149(d)(4) of the Code. 11.2. Non-Arbitrage Bond. To the best of our knowledge, information and belief, the above expectations are reasonable. On the basis of the foregoing, it is not expected that the proceeds of the Lease will be used in a manner that would cause the Lease to be an "arbitrage bond" under Section 148 of the Code and the regulations promulgated thereunder, and, to the best of our knowledge and belief, there are no other acts, estimates or circumstances that would materially change the foregoing conclusion. t 11.3. No Private Use. None of the proceeds of the Lease will be used for any private business - use or for any private loans or for grants to any person. 11A. Hedges. The City of San Marcos has not entered into or expects to enter into any hedge (e.g., interest rate swap, interest rate cap, futures contract, forward contract or an option) to reduce the risk of interest rate changes with respect to the Lease. The City of San Marcos and the City Council acknowledge that any such hedge could affect the calculation of yield under the Treasury Regulations. 4