Resolution - #87-150 - 07/07/1987

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~e~J ~i~ j~ecial Tax Covenant. 6.01 ~ (a) The City covenants and agrees with the holders from time to ti~r,e o i.: the Bonds that it will not take or permit to be taken by any of its o?ftc~rs~ employees or agents any action which would cause the interest on ~he Bond~ to become subject to taxation under the Internal revenue Code of 19~6, a.~ amended (the Code), and the Treasury Regulations promulgated thereumd~:~ £~ effect at the time of such actions, and that it will take or cause ~t~ officers~ employees or agents to take, all affirmative action within Jt~ power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulatiuns, as presently existing or as hereafter amended and made appli- cable to t:he Bonds. (b) The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation ~equirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds~: and ~he rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in caleadar year 1987) exceed the small-issuer exception amount of $5,000,000o 6~()~ ~he City further covenants not to use the proceeds of the Bonds or to c~use or permit them or any of them to be used, in such a manner as to cause ~h~ Bonds to be "private activity bonds" within the meaning of Section:; t03 and 141 through 150 of the Code. 6~1)~ in. order to qualify the Bonds as "qualified tax-exempt obliga- tions'' w~tbin the meaning of Section 265(b)(3) of the Code, the City hereby makes th~ following factual statements and representations: the Bonds are not "private activity bonds" as defined in i41 of the Code; the City hereby designates the Bonds as "qualified tax-ex- ob !.igat ions" for purposes of Section 265(b)(3) of the Code; (cj the reasonably anticipated amount of tax-exempt obligations (other i~han private activity bonds, treating qualified 501(c)(3) bonds ~s uot being private activity bonds) which will be issued by the City (and ali. subordinate entities of the County) during calendar year 1987 wii.i no'-' exceed $10,000,000; and (d> not more than $I0,000,000 of obligations issued by the City dur:!~g .'.alendar year 1987 have been designated for purposes of Section 2~,!i(b)('~) of the Code. The CJ. ty ~::hat. 1 use its best efforts to comply with any federal procedural requirem~'mts which may apply in order to effectuate the designation made by this 12