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20. Coml)liance With Reimbursement Bond Regulations. The provisions of this <br />paragraph are intended to establish and provide for the City's compliance with United States <br />Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the <br />"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the <br />City to reimburse itself for any expenditure which the City paid or will have paid prior to the <br />Closing Date (a "Reimbursement Expenditure"). <br />The City hereby certifies and/or covenants as follows: <br />(a) Not later than sixty days after the date of payment of a Reimbursement <br />Expenditure, the City (or person designated to do so on behalf of the City) has made or will have <br />made a written declaration of the City's official intent (a "Declaration") which effectively (i) <br />states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement <br />Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional <br />description of the property, project or program to which the Declaration relates and for which the <br />Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the <br />general functional purpose thereof from which the Reimbursement Expenditure was to be paid <br />(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be <br />issued by the City for the purpose of financing the Project; provided, however, that no such <br />Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for <br />the Project, defined in the Reimbursement Regulations to include engineering or architectural, <br />surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not <br />exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of <br />Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the <br />proceeds of the Bonds. <br />(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of <br />the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the <br />Reimbursement Regulations. <br />(c) The "reimbursement allocation" described in the Reimbursement Regulations for <br />each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) <br />the issuance of the Bonds, and not later than three years after the later of (i) the date of the <br />payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the <br />Reimbursement Expenditure relates is first placed in service. <br />(d) Each such reimbursement allocation will be made in a writing that evidences the <br />City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 <br />days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. <br />Provided, however, that the City may take action contrary to any of the foregoing <br />covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating <br />in effect that such action will not impair the tax-exempt status of the Bonds. <br />21. Certificate of Registration. A certified copy of this resolution is hereby directed <br />to be filed with the County Auditor of Washington County, Minnesota, together with such other <br />information as the County Auditor shall require, and to obtain the County Auditor's Certificate <br />16 <br />53590415vl <br />