Agenda - Council - 10/26/2004 - 10/26/04

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as the County Auditor shall require and the County Auditor shall issue a certificate that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy required by law has been filed and levied. 21. Records and Certificates. The officers of the City are hereby authorized 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 all 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 furnished, shall be deemed representations of the City as to the facts recited therein. 22. Negative Covenant as to Use Bond Proceeds and Project. The City hereby covenants not to nse the proceeds of the Bonds or to use the Project, or to cause or permit it 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 through 150 of the Code. 23. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (a) requirements relating to temporary periods for investments, (b) limitations on amounts invested at a yield greater than the yield on the Bonds, and (c) 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 (a) the Bonds are issued by a governmental unit with general taxing powers, Co) no Bond is a private activity bond, (c) ninety-five percent or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or ora governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (d) the aggregat6 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 is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(0(4)(1)) of the Code. 24. No Designation as Qualified Tax-Exempt Obligations. The Bonds are not issued as "qualified tax exempt obligations" within the meaning of Section 265Co)(3) of the Code. 25. Refunding Requirements. (a) Until retirement of the Prior Bonds, all provisions theretofore made for the security thereof shall be observed by the City and the EDA and all of its officers and agents. 1700675v1 18