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Bonds as the same appear from the books and records under their custody and control or as <br />otherwise known to than, and all such certified copies, certificates and affidavits, including any <br />heretofore furnished, shall be deemed representations of the City as to the facts recited therein. <br />23. Negative Covenant as to Use Bond Proceeds and Project. The City hereby <br />covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit it to be <br />used, or to enter into any deferred payment arrangements for the cost of the Project, in such a <br />manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 <br />and 141 through 150 of the Code. <br />24. Tax -Exempt Status of the Bonds: Rebate. The City shall comply with <br />requirements necessary under the Code to establish and maintain the exclusion from gross <br />income under Section 103 of the Code of the interest on the Bonds, including without limitation <br />(1) requirements relating to temporary periods for investments, (2) limitations on amounts <br />invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment <br />earnings to the United States, if the Bonds (together with other obligations reasonably expected <br />to be issued and outstanding at one time in this calendar year) exceed the small -issuer exception <br />amount of $5,000,000. <br />For purposes of qualifying for the exception to the federal arbitrage rebate requirements <br />for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and <br />declares that (1) the Bonds are issued by a governmental unit with general taxing powers, (2) no <br />Bond is a private activity bond, (3) ninety-five percent or more of the net proceeds of the Bonds <br />are to be used for local governmental activities of the City (or of a governmental unit the <br />jurisdiction of which is entirely within the jurisdiction of the City), and (4) the aggregate face <br />amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all <br />subordinate entities thereof, and all entities treated as one issuer with the City) during the <br />calendar year in which the Bonds are issued and outstanding at one time is not reasonably <br />expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code. <br />25. Designation of Qualified Tax -Exempt Obligations. In order to qualify the Bonds <br />as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the <br />City hereby makes the following factual statements and representations: <br />(a) the Bonds are issued after August 7, 1986; <br />(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; <br />(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for <br />purposes of Section 265(b)(3) of the Code; <br />(d) the reasonably anticipated amount of tax-exempt obligations (other than private <br />activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will <br />be issued by the City (and all entities treated as one issuer with the City, and all subordinate <br />entities whose obligations are treated as issued by the City) during this calendar year 2004 will <br />not exceed $10,000,000; and <br />t65t9WO 19 <br />