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<br />guaranteed in whole or in part by the United States of America or any agency or instrumentality <br />thereof, or (B) invested directly or indirectly in federally insured deposits or accounts, and (iii) <br />such guarantee is not described in Section 149(b)(3) of the Code; and <br /> <br />(g) It will comply with the information reporting requirements of Section <br />149(e)(2) of the Code. <br /> <br />The terms "debt service," "gross proceeds," "net proceeds," "proceeds," and "yield" have <br />the meanings assigned to them for purposes of Section 148 of the Code. <br /> <br />ARTICLE IV <br /> <br />CONDITIONS OF LENDING <br /> <br />Section 4.1 Conditions of Lending. The obligations of the Bank to lend hereunder <br />are subject to the following conditions precedent: <br /> <br />(a) No Default. On the date hereof the City shall be in compliance with all <br />the terms and provisions set forth in the Loan Documents on its part to be observed or <br />performed, and no Event of Default nor any event that, upon notice or lapse of time or both, <br />would constitute such an Event of Default, shall have occurred and be continuing at such time. <br /> <br />(b) Supporting Documents. On or prior to the date hereof, the Bank shall <br />have received the following supporting documents, all of which shall be satisfactory in form and <br />substance to the Bank (such satisfaction to be evidenced by the purchase of the Bonds by the <br />Bank): <br /> <br />(i) The opinion of the City Attorney or special counsel to the City <br />regarding the due authorization, execution, delivery, validity and enforceability of this <br />Agreement and the Bonds, the City's power to incur the debt evidenced by the Bonds and <br />the due adoption of the Ordinance; <br /> <br />(ii) The opinion of Bond Counsel to the effect that, (A) the interest on <br />the Bonds is excluded from gross income for federal income tax purposes, (B) the <br />interest on the Bonds is not an item of tax preference under Section 57 of the Code, (C) <br />the Bonds are qualified tax -exempt obligations under Section 265(b )(3) of the Code and <br />(D) the Bonds and the income thereon is exempt from the State excise tax on documents; <br />and <br /> <br />(iii) Such additional supporting documents as the Bank may reasonably <br /> <br />request. <br /> <br />ARTICLE V <br /> <br />THE LOAN; CITY'S OBLIGATION; DESCRIPTION AND PAYMENT TERMS <br /> <br />Section 5.1 The Loan. The Bank hereby agrees to loan to the City the amount of <br />$15,000,000 to be evidenced by the Bonds, to provide funds to finance the Project and to pay <br /> <br />{M1883440_2} <br /> <br />10 <br />