Ord 1996-032 - Laserfiche WebLink

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?gA¿ Section 10.07. Federal Tax Matters. - (a) The City hereby represents that the proceeds of the Bonds are needed at this time to for the purposes specified in Section 3.01 hereof; that it is not reasonably expected that the proceeds of the Bonds or money deposited in the Interest and Sinking Fund will be used or invested in a manner that would cause the Bonds to be or become" arbitrage bonds," within the meaning of Section 148 of the Code; and that, except for the Interest and Sinking Fund, no other funds or accounts have been established or pledged to the payment of the Bonds, (b) The City will not take any action or fail to take any action with respect to the investment of the proceeds of the Bonds or any other funds of the City, including amounts received from the investment of any of the foregoing, if such action or inaction, based upon the facts, estimates, and circumstances known on the Closing Date, would result in constituting the Bonds "arbitrage bonds," within the meaning of Section 148 of the Code, and the City will not take any deliberate action motivated by arbitrage that would have such result. , . ( c) The City will not take any action or fail to take any action which action, or inaction, would result in the Bonds being treated as "private activity bonds" within the meaning of Section l41(a) of the Code. (d) The City will comply with the provisions of Section l48(t) of the Code (relating to paying certain excess earnings of investment proceeds of the Bonds to the.United States) and the regulations promulgated thereunder. This covenant includes the maintenance of records regarding investments acquired with the proceeds by or on behalf of the City adequate to calculate the City's rebate liability. (e) The City will not take any action or fail to take any action which action, or inaction, would result in the Bonds being treated as "federally guaranteed" within the meaning of Section l49(b) of the Code. (t) The Bonds are hereby designated "qualified tax-exempt obligations" for the purposes of section 265(b)(3) of the Code. In this regard, neither the City nor any of its subordinate entities, .-' if any, reasonably expect to issue in excess of $10,000,000 aggregate amount of tax-exempt obligations [other than obligations not taken into account pursuant to section 265(b)(3)(C)(ii)] during the calendar year in which the Bonds are issued, and the City hereby covenants not to designate more than $10,000,000 aggregate amount ofta.x-exempt obligations during the calendar year in which the Bonds are issued, (g) Proper officers of the City charged with the responsibility of issuing the Bonds are hereby directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the Çlosing Date and stating whether there are any facts, estimates or circumstances that would materially change the City's current expectations. '" '3A. 'IMAIl'. WWM." A "DOCOO tW N œ. FN 34