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<br /> I m M 01�NNQ�NrMO I N II M01DQ 100- I M 1 OI- Q.- W N ; c 1 ,71:
<br /> ^ I O bN.-ODQTM0II MO I 1L1 II Or-01 my m- I O I am mQ 1-M I Q I W 11
<br /> subject to the tax imposed by Section 831 of the Code, the amount which otherwise would be T � M M Q Q o 1 ° 11 °Q 1°°,�, 1_I 1°�l °_,.
<br /> taken into account as losses incurred under Section 832(b)(5) of the Code must be reduced by ` ' °'"" ' "' " " A N eh
<br /> an amount equal to fifteen percent of the interest on the Bonds that is received or accrued 1
<br /> during the taxable year. Section 86 of the Code requires recipients of certain Social Security m ; M� O°,m°m N aG N ;; 0 m° O m ; QD ; °Q �, Q
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<br /> and railroad retirement benefits to take into account, in determining the taxability of such ° ' °°N Q Q° °° ^°° ; M ;; m° °m ; ° ; N °N 1 M
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<br /> benefits, receipts or accruals o interest on the Bonds. Passive investment income, including Z M M N Q Q °c: ° o. Q°° ; ° �,�, m^ , ° I ° tl
<br /> interest on the Bonds, may be subject to federal income taxation under Section 1375 of the � o 1 N 11 m I cq ev;
<br /> Code for a Subchapter S corporation that has Subchapter C earnings and profits at the close of
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<br /> the taxable year if greater than twenty-five percent of the gross receipts of such Subchapter S ; E " ° ;; ° ° °
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<br /> corporation is passive investment income. Section 265 of the Code denies a deduction for Y _*3 c m O
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<br /> interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of " ' ° ' a m° ' `° " W � °' i
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<br /> a financial institution, that portion of the holder's interest expense allocated to interest on the ° ' " ° ' ' ' '" p - " "="
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<br /> Bonds, except with respect to certain financial institutions (within the meaning of Section 265(b) Q ; Q
<br /> of the Code). DO 1 L ° N t2 1 ^ II t2
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<br /> The foregoing is not intended to be an exhaustive discussion of collateral tax consequences < ;; °° m
<br /> arising from receipt of interest on the Bonds. Prospective purchasers or holders of the Bonds
<br /> should consult their tax advisors with respect to collateral tax consequences, including without 1n 'Gl I Gl
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<br /> limitation the calculations of alternative minimum tax, environmental tax or foreign branch profits ; � > m;; N ; N ; ; m
<br /> tax liability or the inclusion of Social Security or other retirement payments in taxable income. S a N LL '° N � ; co ;;
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<br /> BANK QUALIFIED TAX-EXEMPT BONDS a l /n LL M Q N 11 M ao U, ,
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<br /> The City will designate the Bonds as qualified tax-exempt obligations for purposes of . . . . . .
<br /> Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of L_LL A N° °1' °° 1 °'e! m i °
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<br /> financial institutions to deduct from income for federal income tax purposes, interest expense ; "a „;; I 1 ; N ; ;;
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<br /> that is allocable to carrying and acquiring tax-exempt obligations. y ; Q " ° ;; o ° ; ; N N ; m
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<br /> RATING o w ; Co Q M ; N ;; °, ; a, ; M ; M ; N ;;
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<br /> Application for a rating of the Bonds has been made to Moody's Investors Service ( Moody s ), > 1 w ;
<br /> 99 Church Street, New York, New York. If a rating is assigned, it will reflect only the opinion of o o.'
<br /> 2 T 4-1 I ^ 10 1n M 10 O N I N 11 M r-N N O I Q I Co 0 I W 1 N II
<br /> 1
<br /> H I- m I t`�O Co o Q 1 W II mQ HMO I r I
<br /> 0o y s. Any explanation o the significance o the rating may be obtained only from Moody s. < o L_ ; L m N m e _ I N ;; N 1p N N O i i O
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<br /> There is no assurance that the rating, if assigned, will continue for any given period of time, or M J° I ° ; ;; I _„
<br /> that such rating will not be revised or withdrawn if, in the judgment of Moody's, circumstances a 5 N
<br /> so warrant. A revision or withdrawal of the rating may have an adverse effect on the market ' ' 3 o`
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<br /> price of the Bonds.
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<br /> FINANCIAL ADVISOR ° °' E ° Q°o Z a
<br /> O W IY Gl d' C L W GI ¢ C L
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<br /> Z W = Y N y O . H =
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<br /> O N Gl c O = N a m Gl 0 G'�-J 7 = n U C O W
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<br /> The City has retained Springsted Incorporated Advisors to the Public Sector, of St. Paul ¢ ° N ° °Y ° d LL
<br /> Incorporated, r r > > (D c c m E� -a O Q. m L L IZ 10 m Gl a+Lu > C� > °
<br /> 11 11 � 1co L)000 -°'� > o '- w Gi vl° v o a m lTO is ,'I� GCiv > G`/� > `y iG '-
<br /> Minnesota, as financial advisor (the Financial Advisor ) in connection with the issuance of the W ° < _< Y ...� Y.0< ° m m m 1 E ° L m L m Y
<br /> Bonds. In preparing the Official Statement the Financial Advisor has relied upon governmental " c In ° E E ` ` ° ° ` ° = Y = v m ° d °
<br /> N C aI l): 0 0 0 Y N N 7 = L 1..I L N N H cT L N-� o L N L ,-
<br /> r ¢ m e m L L y.I•'o L J a-I J O L Gl G) N W 1..1 v m N C B Gl C
<br /> officials who have access to relevant data to provide accurate information for the Official = " ` ° °' ` ` Y ° "t °"` ` o ° > Y m= =m
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<br /> Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to m m °_ _ ` ` L E E .. _
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<br /> independently verify the accuracy of such information. The Financial Advisor is not a public
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