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Agenda - Council - 08/13/2013
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Agenda - Council - 08/13/2013
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3/18/2025 9:36:06 AM
Creation date
10/25/2013 4:02:45 PM
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Meetings
Meeting Document Type
Agenda
Meeting Type
Council
Document Date
08/13/2013
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Section 6.13 Bank Qualification. The Company agrees to pay to the Issuer the amount <br />required to reimburse the Issuer for any loss of "bank qualification" for any Unqualified Bonds <br />issued in 2013 (referred to as the "Reimbursement Amount"). The term "Unqualified Bonds" <br />means bonds issued by the Issuer (excluding "qualified 501(c)(3) bonds" as defined in Section <br />145 of the Code other than the Bonds) which the Issuer properly designates as "qualified tax- <br />exempt obligations" for purposes of Section 265(b)(3) of the Code but which the Internal <br />Revenue Service determines were not eligible for bank qualification as a result of the issuance of <br />the Bonds. The Reimbursement Amount shall be the actual cost to the Issuer as a result of such <br />determination by the Internal Revenue Service as determined by the Internal Revenue Service or <br />as a result of negotiations with the holders of such Unqualified Bonds. The Reimbursement <br />Amount for any Unqualified Bonds shall be payable within 15 days after Borrower's receipt <br />from the Issuer of written notice as to the Reimbursement Amount. All fees incurred by the <br />Issuer with respect to such determination by the Internal Revenue Service and the collection of <br />amounts due with respect thereto from the Borrower shall be the sole obligation of the Company, <br />payable with the Reimbursement Amount. <br />29 <br />5600861 v 1 <br />
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