Reso 2010-1538 - Laserfiche WebLink

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If for any reason the interest on this Bond becomes includable in the gross income of the holder of this Bond for Federal income tax purposes (an "Event of Taxability"), this Bond shall bear interest from the earliest effective date of such Event of Taxability at a rate per annum equal to the interest rate otherwise borne by this Bond multiplied by 1.5247. In addition to the foregoing, the City shall pay any additions to tax, penalties and interest, and any arrears in interest imposed upon the holder of this Bond on account of an Event of Taxability. All such additional interest, additions to tax and penalties shall be paid on the next succeeding Bond Payment Date following the date the holder was advised of such Event of Taxability. No Event of Taxability shall be deemed to occur unless the City has been given timely written notice of such occurrence by the Holder of this Bond and, to the extent permitted by law, an opportunity to participate in and seek, at the City's own expense, a final administrative determination by the Internal Revenue Service or determination by a court of competent jurisdiction (from which no further right of appeal exists) as to the occurrence of such Event of Taxability; provided that the City, at its own expense, delivers to the Holder of this Bond an opinion of bond counsel acceptable to such Holder to the effect that such appeal or action for judicial or administrative review is not without merit and there is a reasonable possibility that the judgment, order, ruling or decision from which such appeal or action for judicial or administrative review is taken will be reversed, vacated or otherwise set aside. The interest rate borne by this Bond shall also be adjusted automatically as of the effective date of any change in the Maximum Corporate Tax Rate or in the Preference Reduction Rate, to the product obtained by multiplying the rate of interest on the Bonds by a fraction, the numerator of which is equal to the sum of (i) the product of the Fully Taxable Equivalent times 1 minus the Maximum Corporate Tax Rate in effect as of the date of adjustment, plus (ii) the TEFRA Adjustment in effect as of the date of adjustment, and the denominator of which is equal to the sum of (i) the product of the Fully Taxable Equivalent times 0.65, plus (ii) the TEFRA Adjustment in effect on the date of issuance of the Bonds. A certificate of the Holder as to any such additional amount or amounts, in the absence of manifest error, shall be final and conclusive. In determining such amount, the Holder may use any reasonable averaging and attribution methods. The principal on this Bond shall be due and payable on January 1, April 1, July 1 and October 1 of each year (each, a "Bond Payment Date"), beginning October 1, 2010, through and including March 24, 2025 (the "Maturity Date") (except that the last payment will be made on the Maturity Date), in the amounts set forth on the payment schedule attached hereto. Interest on this Bond shall be due and payable on each Bond Payment Date, beginning October 1, 2010, through and including the Maturity Date (except that the last payment will be made on the Maturity Date). The entire unpaid principal balance, together with all accrued and unpaid interest hereon, shall be due and payable in full on the Maturity Date. All payments by the City pursuant to this Bond shall apply first to accrued interest, then to other charges due the Bank, and the balance thereof shall apply to the principal sum due. Upon two (2) Business Days prior written notice to the Holder, the City may prepay amounts owing under this Bond at any time and from time to time. Such prepayment notice shall A-2 {MI883440_2}