2000 031 Ordinance - Laserfiche WebLink

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The Code prescribes a number of qualifications and conditions for the interest on state arnd local government obligations to be and remain excluded from gross income for federal income tax purposes, some of which, including provisions for the potential payments by the issuer to the federal governunetrt, require fixture or continued compliance after issuance in order for the inerest to be and continue to be so excluded from the date of issuance. Noncompliance with these requirements could cause the merest an the Notes to be included in grass income for federal income tax purposes and to be sixbject to federal income tax retroactively to the date of their issuance. The Village has wvenaated to take actions required of it for the interest on the Notes to be and to remain excluded from gross income for federal income tax purposes, and not to take any actions that would adversely a$+ect that exclusion. Under Cade provisions applicable only to certain corporations (as defined for federal income tax purposes), a portion of the excess of adjusted ewrenrt earnings (which includes interest on all tax-exempt bonds, including ttxe Notes) over other alternative minimum taxable income is included in alternative minimum taxable income which may be subject to a corporate akernative nunimum tax. In addition, interest on the Notes may be subject to a branch profits tax imposed on certain foreign corporations doing business in the United States and to a tax imposed on excess net passive income of certai~tii S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes may have adverse federal income tax consequences on items of income or deductions for certain taxpayers, including among them financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, and those that are deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations, and individuals otherwise eligible for the earned income credit. The applicability and extent of these or other tax consequences will depend upon the particular tax status or other tax items of the owner of the Notes. Bond Counsel expresses no opinion regarding those consequences. From time to time there are legislative proposals in Congress which, if enacted, could aher or amend the federal tax matters referred to or adversely affect the market value of the Notes. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to obligations such as the Notes issued prior to enactmem. The original purchaser of the Notes from the Village, by submitting its proposal, agrees to provide promptly and timely to the Village and Bond Counsel information as to bona fide initial offering prices to the public and sales of the Notes appropriate for the determination of the issue price ot, and the yield on, the Notes under the Code, as and at the time requested by Bond Counsel. In addition to rendering the Legal opinion, Bond Counsel, whose legal services have been retained by the Village, will assist in the prepazation o~ and advise the Village concerning, documenrts for the Note transcript. Bond Counsel has not been retained to confirm or verify, and assumes no responsibility for, and expresses and will express no opinion as to, the accuracy, completeness or fairness of any statements in any reports, financial information, offering or disclosure documents or other information relating to the Village or the Notes that may be prepared or made available by the Village or others to those submitting proposals for or holders of the Notes or others. Pursuarrt to Section 133.30(B) of the Revised Code, the Notes are a single consolidated issue for purposes of their sale and are issued in anticipation of the issuance of bonds for the purpose of paying costs of {i) acquiring certain real estate together with the existing buildings and other structures located thereon and any related equipment and certain other real estate for recreational purposes (Project No. l ); (ii} constructing facilities for storm water management and wetlands preservation (Project No. ?); and (iii) installing roadway safety and message signage and -~-