Ord 1993-038 - Laserfiche WebLink

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(.$C)A r available at all reasonable times for inspection upon request of any bondholder. (k) After the close of each year while any of the Parity Bonds are outstanding, an audit wil1 be made of the books and accounts relating to the System and the Pledged Revenues by an independent certified public accountant or an independent firm of certified accountants. As soon as practicable after the close of each such year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to any Holder of 5% or more in aggregate principal amount of then outstanding Parity Bonds who shall so request in writing. Such annual audit reports shal1 be open to the inspection of the Holders and their agents and representatives at all reasonable times. ARTICLE XVI FEDERAL TAX MATTERS Section 16.01. Federal Tax Matters. (a) The City hereby represents that the proceeds of the Bonds are needed at this time to refund the Refunded Bonds and to the costs of issuing the Bonds; that it .< not reasonably pay J.s expected that the proceeds of the Bonds or money deposited in the Interest and Sinking Fund wi 11 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, that, 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 or "federal1y guaranteed" within the meaning of Section 149(d). The City will not take any deliberate action after the Closing Date that would cause the Bonds to be treated as arbitrage bonds. The City will otherwise comply with all the requirements of Sections 148 and l49(d) of the Code. (c) The City hereby represents that all moneys which were sales proceeds of the Refunded Bonds and were initially deposited into the construction fund created by the ordinance authorizing the issuance of the Refunded Bonds, plus all interest earnings thereon, have been spent prior to the Closing Date. (d) The City wil1 not take any action or fail to take any action which would result in the Bonds being treated as "private activity bonds," within the meaning of Section 141(a) of the Code. 4588f -42-