02-28-2018 Council Packet - Laserfiche WebLink

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10554454v2 4 percent (120%) of the average reasonably expected economic life of the Project determined in the same manner as under § 147(b) of the Code. (h) The stated purposes of the Note, as amended by the Note Amendment, are governmental purposes within the meaning of applicable law and regulations. (i) The Note, as amended by the Note Amendment, is not a hedge bond within the meaning of § 149(g) of the Code, because (1) the City reasonably expects that eighty-five percent (85%) of the spendable proceeds of the Note, as amended by the Note Amendment, will be used to carry out the governmental purposes of the Note within the three (3) year period beginning on the date hereof, and (2) not more than fifty percent (50%) of the proceeds of the Note is invested in nonpurpose investments having a substantially guaranteed yield for four (4) years or more. (j) No “abusive arbitrage device” within the meaning of § 1.148-10 of the Regulations is used in connection with the Note. No action relating to the Note has the effect of (1) enabling the Borrower to exploit the difference between tax-exempt and taxable interest rates to obtain a material financial advantage, and (2) overburdening the tax-exempt market. The City is not aware of any facts or circumstances that would cause it to question the accuracy of the foregoing representations and on the basis thereof, it is not expected that the proceeds of the Note, as amended by the Note Amendment, will be used in a manner that would cause the Note, as amended by the Note Amendment, to be an arbitrage bond under Section 148 of the Code and the regulations prescribed under that section, and to the best of our knowledge and belief, there are no facts, estimates or circumstances other than those mentioned above that would materially change the conclusion that it is not expected that the proceeds of the Note, as amended by the Note Amendment, will be used in a manner that would cause the Note, as amended by the Note Amendment, to be arbitrage bonds under Section 148 of the Code and regulations prescribed under that section; and the undersigned have not been notified nor do they have any knowledge to indicate that the City has been listed or is proposed to be listed by the Internal Revenue Service as an issuer whose arbitrage certificates may not be relied upon. The statements in this paragraph are made pursuant to Sections 1.148-2 of the Regulations and the undersigned Mayor and City Administrator are the officers of the City charged by the Amendment Resolution with the responsibility of delivery of the Note Amendment. [Signature page follows]