11-10-1982 Council Agenda - Laserfiche WebLink

Home Browse Search

(2) an opinion of Counsel for the Borrower as prescribed by Bond Counsel; (3) the opinion of Bond Counsel as to the validity and tax exempt status of the Note; (4) such other documents and opinions as Bond Counsel may reasonably require for purposes of rendering its opinion required in subsection (3) above or that the Lender may reasonably require for the closing. 2 -5. Disposition of Note Proceeds. (1) There is hereby established with the Lender a Construction Fund to be held by the Lender as a separate account of the City as provided in the Construction Loan Agreement. Upon delivery of the Note to Lender, the proceeds of such Note shall be credited to the Construction Fund held by the Lender on behalf of the City, at which time the entire principal amount of the Note shall be deemed advanced, and the Lender shall, on behalf of the City, disburse funds from the Construction Fund for payment of Project Costs upon receipt of such supporting documentation as the Lender may deem reasonably necessary, including compliance with the provisions of the Construction Loan Agreement. The Lender or Borrower shall provide the City with a full accounting of all funds disbursed for Project Costs. (2) Any surplus in the Construction Fund shall be applied towards the prepayment of the Note as provided in the Construction Loan Agreement and shall not be invested to produce a yield greater than the yield on the Note, as required by Internal Revenue Service Revenue Procedure 79 -5, Revenue Procedure 81 -22 and 26 CFR 601.201 (and any subsequent amendments, modifications or replacements thereof); provided that, if the Lender receives an opinion of Bond Counsel that the exemption from federal income taxation of interest on the Notes will not be jeopardized, the surplus funds may be invested at a yield greater than the yield on the Note. 2 -6. Registration of Transfer. The City will cause to be kept at the office of the Clerk a Note Register in which, subject to such reasonable regulations as it may prescribe, the City shall provide for the registration of transfers of ownership of the Note. The Note