Agenda - Council - 05/23/2000 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I thereof in full, provided lhat notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest pa~yable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinve~tment, to pay all amoun~ to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 20..Compliance With Reimburse.rnent Bond Re~.ulatlons. The provisions of this paragraph are imended to establish and provide for the City's compliance with United States Treasury Regulations Section I. 150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follova: (a) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a ::Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of'the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose'of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Proje~ defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory cos'ts, which in the aggregate do not exceed 20% of the "issue price" ofthe Bonds, and (ii) a d, minimix amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds. Co) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section I. 150- 2(d)(3) of the Reimbursement Regulations. 21 I1'1