Reso 2010-1538 - Laserfiche WebLink

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the City may prescribe and paying such expenses as the City may InCUr. The Bond so surrendered shall be canceled. Section 3.10 Section 265 Desie:nation of Bonds. The reasonably anticipated amount of tax-exempt obligations (other than obligations described in clause (ii) of Section 265(b )(3)(C) of the Code) which have been or will be issued by the City during 2010 does not exceed $30,000,000. There are no entities which are subordinate to or which issue obligations on behalf of the City. The City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3)(B)(i) of the Code. The City hereby covenants and agrees not to take any action or to fail to take any action if such action or failure would cause the Bonds to no longer be "qualified tax-exempt obligations." Section 3.11 Tax Representations. Warranties and Covenants of the City. Notwithstanding anything herein to the contrary, the City hereby covenants and represents that it has taken and caused to be taken and shall make and take and cause to be made and taken all actions that may be required of it for the interest on the Bonds to be and remain excluded from the gross income of the Holder for federal income tax purposes, and that to the best of its knowledge it has not taken or permitted to be taken on its behalf, and covenants that to the best of its ability and within its control, it shall not make or take, or permit to be made or taken on its behalf, any action which, if made or taken, would adversely affect such exclusion under the provisions of the Code. The City acknowledges that the continued exclusion of interest on the Bonds from gross income for federal income tax purposes depends, in part, upon compliance with the arbitrage limitations imposed by Sections 1 03(b )(2) and 148 of the Code. The City hereby acknowledges responsibility to take all reasonable actions necessary to comply with these requirements. The City hereby agrees and covenants that it shall not permit at any time or times any of the proceeds of the Bonds or other funds of the City to be intentionally used, directly or indirectly, to acquire or to replace funds which were used directly or indirectly to acquire any higher yielding investments (as defined in Section 148 of the Code), the acquisition of which would cause the Bonds to be an arbitrage bond for purposes of Sections 1 03(b )(2) and 148 of the Code. The City further agrees and covenants that it shall do and perform all acts and things necessary in order to assure that the requirements of Sections 1 03(b )(2) and 148 of the Code are met. Specifically, without intending to limit in any way the generality of the foregoing, the City covenants and agrees: (a) to pay to the United States of America at the times required pursuant to Section 148(f) of the Code, the excess of the amount earned on all non-purpose investments (as defined in Section 148(f)(6) of the Code) (other than investments attributed to an excess described in this sentence) over the amount which would have been earned if such non-purpose investments were invested at a rate equal to the yield on the Bonds, plus any income attributable to such excess (the "Rebate Amount"); (b) to maintain and retain all records pertaining to and to be responsible for making or causing to be made all determinations and calculations of the Rebate Amount and required payments of the Rebate Amount as shall be necessary to comply with the Code; and {MI883440_2} 8