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RESOLUTION ESTABLISHING PROCEDURES <br />RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND <br />REGULATIONS UNDER THE INTERNAL REVENUE CODE <br /> <br /> BE IT RESOLVED by the Board of Commissioners (the "Board") <br />of the Economic Development Authority of the City of Ramsey, <br />Minnesota (the "Authority"), as follows: <br /> <br />1. Recitals. <br /> <br /> (a) The Internal Revenue Service has issued Treasury <br />Regulations, Section 1.150-2 (as the same may be amended or <br />supplemented, the "Regulations"), dealing with <br />"reimbursement bond" proceeds, being proceeds of bonds used <br />to reimburse the Authority, or the City of Ramsey (the <br />"city") as the primary obligor under the bonds, for any <br />project expenditure paid by the Authority or the City prior <br />to the time of the issuance of those bonds. <br /> <br />(b) The Regulations generally require that the <br />Authority make a declaration of intent to reimburse itself <br /> (or the City) for such prior expenditures out of the <br />proceeds of subsequently issued bonds, that such declaration <br />be made not later than 60 days after the expenditure is <br />actually paid, and that the bonding occur and the written <br />reimbursement allocation be made from the proceeds of such <br />bonds within 18 months after the later of (1) the date of <br />payment of the expenditure or (2) the date the project is <br />placed in service (but in no event more than 3 years after <br />actual payment). <br /> <br /> (c) The Authority heretofore implemented procedures <br />for compliance with the predecessor versions of the <br />Regulations and desires to amend and supplement those <br />procedures to ensure compliance with the Regulations. <br /> <br /> (d) The Authority's bond counsel has advised the <br />Authority that the Regulations do not apply, and hence the <br />provisions of this Resolution are intended to have no <br />application, to payments of Authority (or the City) project <br />costs first made by the Authority (or the City) out of the <br />proceeds of bonds issued prior to the date of such payments. <br /> <br /> 2. Official Intent Declaration. The Regulations, in the <br />situations in which they apply, require the Authority to have <br />declared an official intent (the "Declaration") to reimburse <br />itself (or the City) for previously paid project expenditures out <br />of the proceeds of subsequently issued bonds. The Board hereby <br />authorizes the Secretary to make the Authority's Declarations or <br />to delegate from time to time that responsibility to other <br />appropriate Authority employees. Each Declaration shall comply <br /> <br />1088210.1 <br /> <br /> <br />