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24. Tax -Exempt Status of the Bonds: Rebate, The City <br />shall comply with requirements necessary under the Code to <br />establish and maintain the exclusion from gross income under <br />Section 103 of the Code of the interest on the Bonds, including <br />without limitation requirements relating to temporary periods for <br />investments, limitations on amounts invested at a yield greater <br />than the yield on the Bonds, and the rebate of excess investment <br />earnings to the United States, if the Bonds (together with other <br />obligations reasonably expected to be issued and outstanding at <br />one time in this calendar year) exceed the small -issuer exception <br />amount of $5,0000000. <br />For purposes of qualifying for the exception to the <br />federal arbitrage rebate requirements for governmental units <br />issuing $5,000,000 or less of bonds, the City hereby finds, <br />determines and declares that (1) the Bonds are issued by a <br />governmental unit with general taxing powers, (2) no Bond is a <br />private activity bond, (3) ninety-five percent (95%) or more of <br />the net proceeds of the Bonds are to be used for local <br />governmental activities of the City (or of a governmental unit <br />the jurisdiction of which is entirely within the jurisdiction of <br />the City), and (4) the aggregate face amount of all tax-exempt <br />bonds (other than private activity bonds) issued by the City (and <br />all subordinate entities thereof, and all entities treated as one <br />issuer with the City) during the calendar year in which the Bonds <br />are issued and outstanding at one time is not reasonably expected <br />to exceed $5,000,000, all within the meaning of Section <br />148 (f) (4) (C) of the Code. <br />25. Designation of Qualified Tax -Exempt Obligations. <br />In order to qualify the Bonds as "qualified tax-exempt <br />obligations" within the meaning of Section 265(b)(3) of the Code, <br />the City hereby makes the following factual statements and <br />representations: <br />(a) the Bonds are issued after August 7, 1986; <br />(b) the Bonds are not "private activity bonds" as <br />defined in Section 141 of the Code; <br />(c) the City hereby designates the Bonds as "qualified <br />tax-exempt obligations" for purposes of Section 265(b)(3) of <br />the Code; <br />(d) the reasonably anticipated amount of tax-exempt <br />obligations (other than private activity bonds, treating <br />qualified 501(c)(3) bonds as not being private activity <br />bonds) which will be issued by the City (and all entities <br />treated as one issuer with the City, and all subordinate <br />11676 <br />39 <br />