Ordinance 2010-348 - Laserfiche WebLink

Home Browse Search

~ (a) Tax Covenants Relating to the Internal Revenue Code of 1986, as amended. (1) In order to maintain the exclusion from gross income for purposes of federal income taxation of interest on the 2010 Bond, the City covenants to comply with each requirement of the Code. In furtherance of the covenant contained in the preceding sentence, the City agrees to continually comply with the provisions of the Tax Certificate, as such certificate may be amended from time to time, as a source of guidance for achieving compliance with the Code. (2) The City covenants and agrees with the Bondholders that the City shall not take any action or omit to take any action, which action or omission, if reasonably expected on the date of initial issuance and delivery of the 2010 Bond, would cause the 2010 Bond to be a "private activity bond" or "arbitrage bond" within the meaning of Sections 141(a) and 148(a), respectively, of the Code. (3) The City shall make any and all payments required to be made to the United States Department of the Treasury in connection with the 2010 Bond pursuant to Section 148(t) of the Code. (4) Notwithstanding any other provision of this Ordinance to the contrary, so long as necessary in order to maintain the exclusion from gross income for purposes of federal income taxation of interest on the 2010 Bond, the covenants contained in this Section shall survive the payment of the 2010 Bond and the interest thereon, including any payment or discharge thereof pursuant to Section 3.6 of this Ordinance. (b) Establishment of 2010 Debt Service Fund. There is hereby created and established the following fund entitled the "Sunny Isles Beach Stormwater Utility Revenue Bond 2010 Debt Service Fund" (herein referred to as the "2010 Debt Service Fund"). The 2010 Debt Service Fund shall constitute a trust fund for the benefit of the Bondholder and shall be held by the City in an account maintained at a qualified public depository described in Section 1.3(b)(4) of this Ordinance and shall be kept separate and distinct from all other funds of the City, and shall be used only for the purpose and in the manner provided in this Ordinance. Notwithstanding the provisions of the preceding sentence, the City may deposit the proceeds of the Stormwater Utility Fee in a commingled account maintained at such a qualified public depository for the City, provided that the City maintains adequate accounting procedures to reflect and control the restricted allocations of the funds on deposit therein for the various purposes of such funds. The designation and establishment of the 2010 Debt Service Fund in and by this Ordinance shall not be construed to require the establishment of any completely independent self-balancing fund, as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an allocation of certain revenues of the City for certain purposes and to establish certain priorities for application of such revenues as provided herein. Moneys on deposit in the 2010 Debt Service Fund may be invested in Authorized Investments at the written direction of the City, provided such investments mature not later than the next succeeding Payment Date. Subject to the terms and provisions of the Code and the preceding paragraph, all income and earnings received from the investment and reinvestment of Auth. the Issuance of a Stormwater Utility Rev. Bond 14 Series 2010 $3,500,000 MIA 181,312,776v4 7-8-10