1990-058 Council Resolution - Laserfiche WebLink

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Section 2. Installment Purchase Contract Schedule of Payments. 2.01. Pursuant to the Installment Purchase Contract dated as of June 28, 1990 between the City and the Authority, the City has agreed to make payments at the times and in the amounts necessary to pay debt service on the Authority's Bonds. The schedule of payments is as follows: Date Amount [See attached] 2.02. The foregoing payments shall be made to , Minnesota, as trustee for the Authority's Bonds. Section 3. Tax Covenants. 3.01. For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City hereby finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code. The City hereby allocates to the Authority a portion of the City's $5,000,000 limitation under Section 148(f)(4)(C)(i)(IV) of the Internal Revenue Code of 1986, as amended, in the amount of $1,115,000. This allocation is irrevocable and binding upon the City. The project which is being undertaken by the Authority with the proceeds of the Bonds is a project which confers benefits on the City since it is a project which will be sold to and occupied by the City pursuant to the Installment Purchase Contract. 3.02. The City covenants not to use the project or 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. 3.03. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1990 will not exceed $10,000,000; and (c) not more than $10,000,000 of obligations issued by the City (or entities subordinate to the City) during calendar year 1990 have been designated for purposes of Section 265(b)(3) of the Code. 3