Agenda Packets - 1993/05/10 - Laserfiche WebLink

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cause the Bonds or the Prior Bonds to be "private activity bonds" or "arbitrage bonds" within the meaning of Sections 103 and 141 • through 150 of the Code. 24. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small-issuer exception amount of $5, 000, 000, or do not otherwise qualify for available exceptions. For purposes of qualifying for the small-issuer exception to the federal arbitrage rebate requirements, the City hereby finds, determines and declares that (1) the Bonds are issued by a governmental unit with general taxing powers, (2) no Bond is a private activity bond, (3) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City) , and (4) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all entities subordinate to, or treated as one issuer with, the City) during the 1993 calendar year is not reasonably expected to exceed $5, 000,000, all within the meaning of Section 148 (f) (4) (D) of the Code. For purposes of substantiating the determination that the Bonds, being refunding bonds, are eligible for exception from rebate pursuant to the above, in particular because they meet the applicable requirements set out in Section 148 (f) (4) (D) (v) of the Code, the City hereby represents and determines that (1) the Prior Bonds were issued in 1991 by the City, which was at the time and is now a governmental unit with general taxing powers; (2) the Prior Bonds were not private activity bonds; (3) 95% or more of the net proceeds of the Prior Bonds were used for local governmental activities of the City; (4) at the time of the issuance of the Prior Bonds, the City stated its reasonable expectation that it would not issue in excess of $5, 000,000 of bonds (other than private activity bonds) during calendar year 1991, and in fact did not in that year issue in excess of said amount; (5) accordingly, each of the Prior Bonds was issued as a part of an issue which was treated as meeting the requirements of Section 148 (f) (2) and (3) of the Code by reason of Section 148 (f) (4) (D) of the Code [then codified in Section 148 (f) (4) (C) ] ; (6) the average maturity date of the Bonds is not later than the average maturity date of the Refunded Bonds; and (7) none of the Bonds has a maturity date which is later than 30 years after the date on which the Prior Bonds were issued. 238053 20