Laserfiche WebLink
may be required to show the facts relating to the legality and marketability of the Bonds as the <br /> same appear from the books and records under their custody and control or as otherwise known <br /> to them, and all such certified copies, certificates and affidavits, including any heretofore <br /> furnished, shall be deemed representations of the City as to the facts recited therein. <br /> 7.03. Covenant. The City covenants and agrees with the registered owners of the <br /> Bonds, that it will not take, or permit to be taken by any of its officers, employees or agents, any <br /> action which would cause the interest payable on the Bonds to become subject to taxation under <br /> the Internal Revenue Code of 1986, as amended (the"Code") and Regulations promulgated <br /> thereunder(the"Regulations")as are enacted or promulgated and in effect on the date of <br /> issuance of the Bonds, and covenants to take any and all actions within its powers to ensure that <br /> the interest on the Bonds will not become includable in gross income of the recipient under the <br /> Code and the Regulations. The facilities financed by the Bonds shall at all times during the term <br /> of the Bonds be owned and maintained by the City and the City shall not enter into any lease, use <br /> agreement, management agreement, capacity agreement or other agreement or contract with any <br /> nongovernmental person relating to the use of the facilities financed by the Bonds, or security for <br /> the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" <br /> or"private loan bonds"pursuant to Section 141 of the Code. <br /> 7.04. Arbitrage Rebate. For purposes of complying with the requirements of <br /> Section 148(f)(4)(C)of the Code relating to the exemption of certain small governmental units <br /> from the rebate requirements of the Code, the City represents that: <br /> • (i) the City is a governmental unit with general taxing powers; <br /> (ii) the Bonds are not"private activity bonds" as defined in Section 141 of the <br /> Code (Private Activity Bonds);ninety-five percent of the net proceeds of the Bonds are to <br /> be used for the local governmental purposes of the City; and <br /> (iii) the aggregate face amount of all tax-exempt bonds (other than Private <br /> Activity Bonds and any refunding bonds not taken into account under Section <br /> 148(f)(D)(iii) of the Code) issued by the City in calendar year in which the Bonds are to <br /> be issued is not reasonably expected to exceed $5,000,000. <br /> Therefore, pursuant to the provisions of Section 148(f)(4)(C) of the Code, the City shall <br /> not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of <br /> Section 148(f) of the Code with respect to the Bonds. <br /> 7.05. Interest Disallowance. The City hereby designates the Bonds as"qualified tax- <br /> exempt obligations" for purpose of Section 265(b) of the Code relating to the disallowance of <br /> interest expenses for financial institutions. The City represents that in calendar year 2009 it does <br /> not reasonable expect to issue tax-exempt obligations which are not private activity bonds (not <br /> treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for <br /> purposes of this representation) in an amount in excess of$30,000,000, excluding any tax- <br /> exempt obligations which are refundings of a"qualified tax-exempt obligation"which are not <br /> taken into account for this purpose under Section 265(b)(3)(D)(ii) of the Code. <br /> -14- <br />