Minutes 11/08/1994 - Laserfiche WebLink

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1.74 TUESDAY, NOVEMBER 8, 1994 of the Lease Agreement. The Mayor or Vice Mayor, the City Manager and all other officers of the City are hereby authorized and directed to work with representatives of the Authority, Sands, Anderson, Marks & Miller, a Professional Corporation as bond counsel, and the Bondholder to perform all services and prepare all documentation necessary or appropriate to issue and deliver the Note, including without limitation, final forms of the Documents. The City Council covenants that the City shall not take or omit to take any action the taking or omission of which will cause the Note to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, including regulations issued pursuant thereto (the "Code"), or otherwise cause interest on the Note to be includable in the gross income for Federal income tax purposes of the registered owners thereof under existing law. Without limiting the generality of the foregoing, the City shall comply with any provision of law that may require the City at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Note. The City Council as the governing body of the City, on behalf of the City, hereby designates and allocates to the Authority for the purposes of issuance of the Note an allocation of $5,000,000 of its total $5,000,000 exception as a small issuer to the arbitrage rebate requirements of the Code pursuant to Section 148(f)(4)(D)(iv) of the Code and represents the following for such purposes: (i) the Note is issued by the Authority which is a subordinate entity of the City, a governmental unit with general taxing powers, (ii) no "bond" which is part of the issue of the Note is a private activity bond, (iii) 95% or more of the net proceeds of such issue are to be used for local governmental activities of the issuer (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the issuer), (iv) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by such unit during the calendar year in which such issue is issued is not reasonably expected to exceed $5,000,000 and (v) the portion of limitation so allocated bears a reasonable relationship to the benefits received by such governmental unit from issues issued by such entity, all pursuant to the provisions of Section 148(f)(4)(D)(iv) of the Code and the United States Treasury Regulations issued thereunder, including but not limited to, Section 1.148-8 of such regulations. The City Council covenants that the City shall not permit the proceeds of the Note to be used in any manner that would result in (a) 10% or more of such proceeds being used in a trade or business carried on by any person other than a governmental unit, as provided in Section 141(b) of the Code, provided that no more than 5% of such proceeds may be used in a trade or business unrelated to the'City's use of the Project, (b) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any persons other than governmental unit, as provided in Section 141(c) of the Code; provided, however, that if the City receives an opinion of nationally recognized bond counsel that any such covenants need not be complied with to prevent the interest on the Note from being includable in the gross income for Federal income