2006-176 Council Resolution - Laserfiche WebLink

Home Search

7.02. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States. 7.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 7.04. The Bonds are deemed to be "qualified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Code, because the City determines that: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the Refunded Bonds were qualified tax- exempt obligations; (c) the Bonds are not taken into account in determining the status of the City as a "qualified small issuer" within the meaning of Section 265(b)(3) of the Code, because the amount of the Bonds does not exceed the outstanding amount of the Refunded Bonds; (d) the average maturity date of the Bonds is not later than the average maturity date of the Refunded Bonds; and (e) the Bonds have a maturity date which is not later than the date which is 30 years after the date the Refunded Bonds were issued. 7.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book -Entry System; Limited Obligation of City. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ( "DTC "). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 8.02. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants ") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown 299374v2 SJB LNI40 -97 14 i