2003-052 Ordinance - Laserfiche WebLink

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? Retiremerrt Fund, which is irrevoca.bly pledged for the payment of the debt charges on the Notes or the Bonds when and as the same fa11 due. Section 10. The Crty covenants that it will use, and will restrict the use and investmern of, the proceeds of the Notes in such manner and to such exterrt as may be necessary so that (a) the Notes will not (i) constitute private activity bonds, azbitrage bonds or hedge bonds under Section 141, 148 or 149 of the Irrternal Revenue Code of 1986, as amended (the Code), or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the interest on the Notes 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 Notes to be and remain excluded from gross income for federal income tax purposes, (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 Notes to the governmernal purposes of the borrowing, (ii) restrict the yield on investment property, (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, a11 in such manner and to the extent necessazy to assure such exclusion of that interest under the Code. The City hereby represeirts that the Outstanding Notes were designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code. The City hereby covenants that it will redeem the Outstanding Notes from proceeds of and within 90 days a.fter issuance of, the Notes, and represerrts that a11 other conditions are met for treating the Notes as "qualified tax-exempt obligations" and as not to be taken into accoutrt under subparagraph (D) of Section 265(b)(3) of the Code, without necessity for further designation, by reason of subparagraph (D)(ii) of Section 265(bx3) of the Code. Further, the Crty represents and covenants that, dwing any time or in any manner as might affect the status of the Notes as "qualified tax-exempt obligations", it has not formed or participated in the formation ot or benefitted 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 benefrt from or avail itself ot any such eirtity. The City further represents that the Notes are not being issued as part of a direct or indirect composite issue that combines issues or lots of taac-exempt obligations of different issuers. The I}irector of Finance, as the fiscal officer, or any other officer of the City having responsibility for issuance of the Notes 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 Notes as the City is permitted or required to make or give under the federal income tax laws, including, without limitation thereto, any of the elections provided for in Section 148( fl(4)(C) of the Code or available under Section 148 of the Code, for the purpose of assuring, enhancing or protecting favora.ble tax treatment or status of the Notes or interest thereon or assisting compliance with requiremerns for that purpose, reducing the burden or expense of such compliance, reducing the rebate amouYrt or payments of penalties, or making paymerrts of special amounts in lieu of making computations to determine, or paying, excess earnings as rebate, or obviating those amourns or paymerrts, as determined by that officer, which action sha11 be in writing and signed by the officer, (b) to take any and a11 other actions, make or obtain calculations, make paymerns, and make -5- M4F3H+s?t,C?