92-032 Ordinance - Laserfiche WebLink

Home Browse Search

- 4 - 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 wou.l.d adverse.l.y aff.ect 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 governmental purposes of the borrowing, (ii) restrict the yield on investment property, (iii) make timely and adequate payments to ttie federal government, (iv) maintain books and records and make calculations and report?s, 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 Director of Finance, as the fiscal officer, or any other officer of the City having responsibility for issuance of the Notes i.s liereby autho- rized (a) to make or effect any election, selection, designation, clioice, consent, approval, or waiver on behalf of tlie City with respect t.o 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(f)(4)(C) of the Code or available under Section 148 of the Code, for the purpose of assuring, enhancing or protecting favorabie tax treatment or status of the Notes or interest thereon or assisting compliance with requirements for that purpose, reducing t.he burden or expense of such compliance, reducing the rebate amount or payments of penalt.ies, or making payments of special amounts in lieu of making computations to determine, or paying, excess earnings as rebate, or obviating those amounts or payments, as determined by that officer, wkiich action shall be in writing and signed by the officer, (b) to take any and all ottier actions, make or obtain calculations, make payments, and make or give reports, covenants and certifications of and on behalf of the City, as may be appropriate to assure the excl.usion of inter- est from gross income and the intended tax stat:us of the Notes, and (c) to give one or more appropriate certificates of tl:ie City, for incltision in the transcript of proceedings for the Notes, setting forth the reasonable expecta- tions of the City regarding the amount and use of a11 tkie proceeds of the Notes, the facts, circumstances and estimates on which they are based, and other facts and circumstances relevant to the tax treatmetit of the interest on and the tax status of the Notes. The City hereby represents that the 1991 Notes are t.reated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of Che Code. The City hereby covenants that it will redeem the 1991 Notes fr.om proceeds of, and within 90 days after issuance of, the Notes, and represents that ali other conditions are met for treating the Notes as "qualified tax-exempt obligations" and as not to be taken into account under subparagraph (D) of Section 265(b)(3) of the Code, without necessity for further desigriation, by reason of subparagraph (D)(ii) of Section 265(b)(3) of tiie Code. Further, the City represents and covenants that, during any time or in any manner as miglit affect the status of the Notes as "yualified tax-exempt obligations", it has not formed or participated in the formation of, or benefited from or avaiJ.ed 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. The City further represents that tlie Notes 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.