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Refunding Bonds along with such other information for the records of the Issuer as is necessary
<br />to determine the regularity and validity of the issuance of the Series 2002 Refunding Bonds.
<br />
<br /> Section 9. Tax Compliance Covenants. The Issuer covenants that it will
<br />restrict, and that it will take such actions as are reasonably necessary to require the Trustee in its
<br />capacity as Trustee to restrict the use of the proceeds of the Series 2002 Refunding Bonds in
<br />such manner and to such extent, if any, as may be necessary, after taking into account reasonable
<br />expectations at the time of the delivery of and payment for the Series 2002 Refunding Bonds, so
<br />that the Series 2002 Refunding Bonds will not constitute arbitrage bonds under Section 148 of
<br />the internal Revenue Code of 1986, as amended (the "Code") and the applicable regulations
<br />prescribed under that Section. To that end, the Authorized Official, or any other officer having
<br />responsibility for issuing the Series 2002 Refunding Bonds, shall, alone or with any other officer,
<br />agent, or employee of or consultant to the Issuer, give an appropriate certificate of the Issuer for'
<br />inclusion in the transcript of proceedings for the Series 2002 Refunding Bonds, setting forth the
<br />reasonable expectations of the Issuer regarding the amount and use of all the proceeds of the
<br />Series 2002 Refunding Bonds and the facts, estimates, and circumstances on which those
<br />expectations are based.
<br />
<br /> The Issuer covenants and represents that it will take all actions that may be
<br />required of the Issuer for the interest on the Series 2002 Refunding Bonds to be and remain
<br />excludable from gross income for federal income tax purposes, and that it has not taken and will
<br />not take or omit to take any aetious which, if taken or omitted, would adversely affect such
<br />exclusion from gross income for federal income tax purposes, under the provisions of the Code
<br />and applicable amendments thereto, until and unless, and except to the extent the Issuer obtains a
<br />written Opinion of Bond Counsel that this covenant need not be complied with in order for the
<br />interest on the Series 2002 Refunding Bonds to continue to be excludable from gross income for
<br />federal income tax purposes.
<br />
<br /> The Issuer will, among other acts of compliance, apply the proceeds of the Series
<br />2002 Refunding Bonds, restrict the yield on investmentsof, or on obligations acquired with, such
<br />proceeds, make timely rebate payments to the federal government, maintain books and records,
<br />and refrain from certain uses 0fproceeds, all in such manner and to the extent necessary for the
<br />interest on the Series 2002 Refunding Bonds to be and remain excluded from gross income for
<br />federal income tax purposes; and the Authorized Official and other appropriate officers are
<br />hereby authorized and directed to take any and all such actions, make such rebate payments, and
<br />make or give such reports and certifications as may be appropriate to assure such exclusion of
<br />that interest.
<br />
<br /> Section 10. Surety Bond and Bond Insurance for the Series 2002 Bonds. The
<br />Legislative Authority hereby authorizes the Fiscal Officer, if recommended by the Original
<br />Purchaser and determined by the Fiscal Officer to be available and to be financially beneficial to
<br />the Issuer to make application for, and to purchase, with respect to the Series 2002 Kefunding
<br />Bonds, a surety bond in satisfaction of the Bond Reserve Requirement for the Series 2002
<br />Refunding Bonds and' hereby ratifies any such application heretofore made. Reasonably
<br />standard provisions pertaining to such surety bond and reasonable changes to the Second
<br />Supplemental Indenture relating to such surety bond shall be approved by the officers executing
<br />the Second Supplemental Indenture, which approval shall be evidenced by their execution
<br />thereof. Nothing in this paragraph shall be construed as to prevent a surety bond being obtained
<br />pursuant to the provisions of this paragraph from being combined with the surety bond, if any,
<br />being obtained for the Series 1995 Bonds pursuant to the provisions of Section 3(h) hereof.
<br />
<br /> In connection with obtaining such a surety bond for the Series 2002 Refunding
<br />Bonds, the Legislative Authority hereby determines that it is (a) impractical to obtain such a
<br />surety bond under competitive bidding procedures and (b) cost=effective and in the best interesm
<br />of the Issuer to purchase such surety bond without competitive bidding; provided, however, that
<br />the Fiscal Officer shall obtain informal proposals from more than one provider of such surety
<br />bond, and shall make her selection of the provider of such surety bond based upon her analysis of
<br />the financial benefit that the Issuer will receive and any other factors that she deems relevant.
<br />The surety bond so selected shall be in such form as, in the Fiscal Officer's judgment, will
<br />satisfy the Bond Reserve Requirement for the Series 2002 Refunding Bonds.
<br />
<br /> The Legislative Authority hereby authorizes the Fiscal Officer, if recommended
<br />by the Original Purchaser and determined by the Fiscal Officer to be available and to produce an
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