|
ORDINANCE NO. 2014-17 PAGE 10
<br />Section 13. Federal Tax Considerations. The Village covenants that it will use,
<br />and will restrict the use and investment of, the proceeds of the Bonds in such manner and to such
<br />extent as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds,
<br />arbitrage bonds or hedge bonds under Section 141, 148 or 149 of the Internal Revenue Code of
<br />1986, as amended (the Code), or (ii) be treated other than as bonds to which Section 103 of the
<br />Code applies, and (b) the interest thereon will not be an item of tax preference under Section 57 of
<br />the Code.
<br />The Village further covenants that (a) it will take or cause to be taken such actions that
<br />may be required of them for the interest on the Bonds to be and to remain excluded from gross
<br />income for federal income tax purposes, (b) it will not take or authorize to be taken any actions
<br />that would adversely affect that exclusion and (c) it, or persons acting for them, will, among other
<br />acts of compliance, (i) apply the proceeds of the Bonds to the governmental purposes of the
<br />borrowing, (ii) resfirict the yield on invesiment property, (iii) make timely and adequate payments
<br />to the federal government, (iv) maintain books and records and make calculations and reports, and
<br />(v) refrain from certain uses of those proceeds and, as applicable, of property financed with such
<br />proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest
<br />under the Code.
<br />The Director of Finance, or any other officer of the Village having responsibility for
<br />the issuance of the Bonds is hereby authorized (a) to make or effect any election, selection,
<br />designation (including specifically designation of the Bonds as "qualified tax-exempt obligations"
<br />if such designation is applicable and desirable), choice, consent, approval or waiver on behalf of
<br />the Village with respect to the Bonds as the Village is pertnitted or required to make or give under
<br />the federal income tax laws, including, without limitation thereto, any of the elections provided for
<br />in or available under Section 148 of the Code, for the purpose of assuring, enhancing or protecting
<br />the favorable tax treatment or status of the Bonds or interest thereon or assisting compliance with
<br />requirements for that purpose, reducing the burden or expense of such compliance, reducing the
<br />rebate amount or payments or penalties, or making payments of special amounts in lieu of making
<br />computations to determine, or paying, excess earnings as rebate, or obviating those amounts or
<br />payments, as determined by that officer, which action shall be in writing and signed by the officer,
<br />(b) to take any and all other actions, make or obtain calculations, make payments, and make or
<br />give reports, covenants and certifications of and on behalf of the Village, as may be appropriate to
<br />assure the exclusion of interest from gross income and the intended tax status of the Bonds, and (c)
<br />to give one or more appropriate certificates of the Village, for inclusion in the transcript of
<br />proceedings for the Bonds, setting forth the reasonable expectations of the Village regarding the
<br />amount and use of all the proceeds of the Bonds, the facts, circumstances and estimates on which
<br />they are based, and other facts and circumstances relevant to the tax treatment of the interest on
<br />and the tax status of the Bonds.
|