|
- 4 -
<br />of the borrowing, (ii) restrict the yield on investment property, (iii) make
<br />timely and adequate payments to the federal government, (iv) maintain books
<br />and records and make calculations and reports, and (v) refrain from certain
<br />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
<br />exclusion of that interest under the Code.
<br />Ttie Director of Finance, as the fiscal officer, or any other officer
<br />of the City having responsibility for issuance of the Notes is hereby autho-
<br />rized (a) to make or effect any election, selection, designation, choice,
<br />consent, approval, or waiver on behalf of the City with respect to the Notes
<br />as the City is permitted or required to make or give under the federal income
<br />tax laws, including, without limitation, any of the elections provided for in
<br />Section 148(f)(4)(C) of the Code or available under Section 148 of the Code,
<br />for the purpose of assuring, enhancing or protecting favorable tax treatment
<br />or status of the Notes or interest thereon or assisting compliance with
<br />requirements for that purpose, reducing the burden or expense of such com-
<br />pliance, reducing the rebate amount or payments or penalties, or making
<br />payments of special amounts in lieu of making computations to determine, or
<br />paying, excess earnings as rebate, or obviating those amounts or payments, as
<br />determined by that officer, which action shall be in writing and signed by the
<br />officer, (b) to take any and all other actions, make or obtain calculations,
<br />make payments, and make or give reports, covenants and certifications of and
<br />on behalf of the City, as may be appropriate to assure the exclusion of
<br />interest from gross income and the intended tax status of the Notes, and (c)
<br />to give one or more appropriate certificates of the City, for inclusion in the
<br />transcript of proceedings for the Notes, setting forth the reasonable expecta-
<br />tions of the City regarding the amount and use of all the proceeds of the
<br />Notes, the facts, circumstances and estimates on which they are based, and
<br />other facts and circumstances relevant to the tax treatment of the interest on
<br />and the tax status of the Notes.
<br />Each covenant made in this Section with respect to the Notes is also
<br />made with respect to all issues any portion of the debt service on which is
<br />paid from proceeds of the Notes (and, if different, the original issue and any
<br />refunding issues in a series of refundings), to the extent such compliance is
<br />necessary to assure exclusion of interest on the Notes from gross income for
<br />federal income tax purposes, and the officers identified above are authorized
<br />to take actions with respect to those issues as they are authorized in this
<br />Section to take with respect to the Notes.
<br />The City hereby represents that the 1991 Notes are treated as "quali.-
<br />fied tax-exempt obligations" pursuant to Section 265(b)(3) of the Code. The
<br />City hereby covenants that it will redeem the 1991 Notes from proceeds of, and
<br />within 90 days after issuance of, the Notes, and represents that all other
<br />conditions are met for treating the Notes as "qualified tax-exempt obliga-
<br />tions" and as not to be taken into account under subparagraph (D) of Section
<br />265(b)(3) of the Code, without necessity for further designation, by reason of
<br />subparagraph (D)(ii) of Section 265(b)(3) of the Code. Further, the City
<br />represents and covenants that, during any time or in any manner as might
<br />affect the status of the Notes as "qualified tax-exempt obligations", it has
<br />not formed or participated in the formation of, or benefited from or availed
<br />
|