2000-085 Ordinance - Laserfiche WebLink

Home Browse Search

to all other items and for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment of the debt charges on the Bonds when and as the same fall due. In each year to the extent the income from the City's municipal income ta}c is available for the payment of debt chazges on the Bonds and is appropriated for that purpose in accordance with the City's covenants herein, the amount of the tax shall be reduced by the amount of the income so available and appropriated. Section 8. Federal Tax Considerations. The Ciiy covenants that it will use, and will restrict the use and investment of, the proceeds of the Bonds in such manner and to such extent as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Sections 141, 148 or 149 of the Code or (ii) be treated other than as bonds to which Secdon 103 of the Code applies, and (b) the interest thereon will not be an item of tax preference under Section 57 of the Code. The City further covenants that (a) it will take or cause to be taken such actions that may be required of it for the interest on the Bonds to be and to remain excluded from gross income for federal income tax purposes, and (b) it will not take or authorize to be taken any actions that would adversely affect that exclusion, and (c) it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Bonds to the governmental purpose of the borrowing, (ii) restrict the yield on investment property acquired with those proceeds, (iii) make timely and adequate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of those proceeds, and, as applicable, of property financed with such proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The City represents that the Outstanding Series A Notes and the Outstanding Series B Notes are treated as "qualified tax-exempt obligations", and the Outstanding Series C Notes were designated as "qualified tax-exempt obligations", pursuant to Section 265(b)(3) of the Code. The City hereby covenants that the City will redeem the Outstanding Series A Notes, the Outstanding Series B Notes and the Outstanding Series C Notes from proceeds of, and within 90 days after issuance of, the Bonds, and represents that a11 other conditions are met for treating the Bonds as "qualified tax-exempt obligations" and as not to be taken into account under subpazagraph (D) of Section 265(b)(3) of the Code, without necessity for further designation, by reason of subpazagraph (D)(ii) of Section 265(b)(3) of the Code. Further, the City represents and covenants that, during any time or in any manner as might affect the staius of the Bonds as "qualified tax-exempt obligations", it has not formed or participated in the formation of, nor benefited from or availed itself of, any entity in order to avoid the purposes of subparagraph (C) or (D) of Section 265(b)(3) of the Code, and will not form, participate in the formation of, or benefit from or avail itself of, any such entity. This City further represents that the Bonds are not being issued as part of a direct or indirect composite issue that combines issues or lots of tax-exempt obligations of different issuers. The Director of Finance, as the fiscal officer, or any other off'icer of the City having responsibility for issuance of the Bonds is hereby authorized (a) to make or effect any election, selection, designation, choice, consent, approval, or waiver on behalf of the City with respect to the Bonds as the City is permitted or required to make or give under the federal income tax laws, including, without limitation, any of the elections available under Section 148 of the Code, for the -17- .