|
. . . .. . .. . .. ..: . . . . . ...:.: I . ?u:..:... ..,, h- ......
<br />- O -
<br />is ordered computed, certified, levied and extended upon the tax duplicate and collected by the
<br />same officers, in the same manner, and at the same time that taxes for general purposes for each
<br />of those years are certified, levied, extended and collected, and shall be placed before and in
<br />preference to all other items and for the full amount thereof. The proceeds of the tax levy shall
<br />be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment of the
<br />debt charges on the Notes or the Bonds when and as the same fall due.
<br />Section 11. The City covenants that it will use, and will restrict the use and
<br />investment of, the proceeds of the Notes in such manner and to such extent as may be necessary
<br />so that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds
<br />under Section 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code),
<br />or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the
<br />interest on the Notes will not be an item of tax preference under Section 57 of the Code.
<br />The City further covenants that (a) it will take or cause to be taken such actions that
<br />may be required of it for the interest on the Notes to be and remain excluded from gross income
<br />for federal income tax purposes, (b) it will not take or authorize to be taken any actions that
<br />would adversely affect that exclusion, and (c) it, or persons acting for it, will, among other acts
<br />of compliance, (i) apply the proceeds of the Notes to the governmental purposes of the
<br />borrowing, (ii) restrict the yield on investment property, (iii) make timely and adequate
<br />payments to the federal government, (iv) maintain books and records and make calculations and
<br />reports, and (v) refrain from certain uses of those proceeds and, as applicable, of property
<br />financed with such proceeds, all in such manner and to the extent necessary to assure such
<br />exclusion of that interest under the Code.
<br />The Director of Finance, as the fiscal officer, or any other officer of the City having
<br />responsibility for issuance of the Notes is hereby authorized (a) to make or effect any election,
<br />selection, designation, choice, consent, approval, or waiver on behalf of the City with respect
<br />to the Notes as the City is permitted or required to make or give under the federal income tax
<br />laws, including, without limitation thereto, any of the elections provided for in Section
<br />148(f)(4)(C) of the Code or available under Section 148 of the Code, for the purpose of
<br />assuring, enhancing or protecting favorable tax treatment or status of the Notes or interest
<br />thereon or assisting compliance with requirements for that purpose, reducing the burden or
<br />expense of such compliance, reducing the rebate amount or payments of penalties, or making
<br />payments of special amounts in lieu of making computations to determine, or paying, excess
<br />eamings as rebate, or obviating those amounts or payments, as determined by that officer, which
<br />action shall be in writing and signed by the officer, (b) to take any and all other actions, make
<br />or obtain calculations, make payments, and make or give reports, covenants and certifications
<br />of and on behalf of the City, as may be appropriate to assure the exclusion of interest from gross
<br />income and the intended tax status of the Notes, and (c) to give one or more appropriate
<br />certificates of the City, for inclusion in the transcript of proceedings for the Notes, setting forth
<br />the reasonable expectations 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 other facts and
<br />circumstances relevant to the tax treatment of the interest on and the tax status of the Notes.
<br />Each covenant made in this Section with respect to the Notes is also made with
<br />respect to all issues any portion of the debt charges on which is paid from the proceeds of the
<br />Notes (and, if different, the original issue and any refunding issues in a series of refundings),
<br />to the extent such compliance is necessary to assure exclusion of interest on the Notes from
<br />gross income for 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 Section to take with
<br />respect to the Notes.
<br />D03:[00523.DOCS.NOR05225]NOTE_ORD_MOTOR VEH $1 045.
|