Resolution - #09-10-252 No Signature - 10/27/2009

Home

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 furnished, shall be deemed representations of the City as to the facts recited therein. 27. Negative Covenant as to Use of Bond Proceeds and Improvements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through J 50 of the. Code. 28.' The Status of the Bonds as Build America Bonds: Rebate. The yield on the Bonds shall be reduced by the tax credit allowed under Section 6431 of the Code. As a condition for their designation as Build America Bonds, the Bonds shall meet all requirements for the exclusion of interest from gross income under Section 103 of the Code, The City shall comply with requirements necessary under the Code to establish and maintain the status of the Bonds as Build America Bonds which are qualified bonds, including requirements relating to the exclusion from gross income under Section 103 of the Code of the interest on the Bonds but for their election of Build America 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 year) exceed the small issuer exception amount of $5,000,000. For purposes of qualifying for the exception to the federal arbitrage rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that (1) the Bonds are issued by.a governmental unit with general taxing powers, (2) no Bond is a private activity bond, (3) 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 (4) the aggregate face amount of all tax exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof, and all 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. 29. Payable 35% Credits. Sections 54AA(g) and 6431 of the Code provide that the issuer of Build America Bonds which are qualified bonds, for which the City in paragraph 2 has made the irrevocable elections required by law, shall be allowed a credit with respect to each interest payment date under such bonds, which shall be payable by the Secretary of the Treasury, , The Secretary of the Treasury shall pay (contemporaneously with each interest payment date under such bonds) to the issuer of such bonds (or to any person who makes such interest payments on behalf of the issuer) 35% of the interest payable under such bonds on such d~te. The City and its officers and staff shall take such actions as are necessary to timely apply for and receive such credits, including filing a Form 8038 information return with respect to the Bonds and Form 8038-CP returns for credit payments to issuers of qualified bonds with respect to each interest payment on the Bonds. ' 2413138v2