Agenda - Council - 12/19/2000 - Laserfiche WebLink

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-110- 25. Records and Certificates. The officers of the City are hereby attthorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of ali proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, .and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore 2trnished, shall be deemed representations of the City as to the facts recited therein. 26. Negative Covenant as to Use of Bond Proceeds and Proiect. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds"'within the meaning of Sections 103 and 141 tlu'ough 150 of the Code. 2?. Tax-Exemr~t Status of the Bonds: Rebate. The City shalI comply with requirements necessary under the Code to establish and maintain the exclusion from goss income under Section 103 of the Code of the interest on the Bonds, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar yea?) exceed the small-issuer exception amount of $$,000,000. For purposes of qualifying for the exception to the federal arbitrage rebate requirements for governmental urfits issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that ii) the Bonds are issued by a governmental unit'with general taxing powers, (ii) no Bond is a private activity bond, (iii) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (iv) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities there6f; and ali entities treated as one issuer with the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code. 28. Desianation of Qualified Tax-Exempt Obligations. -In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; 12374g3.1 22 I I I I I I I I I I I I I I I