Resolution - #89-11-321 - 11/28/1989

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validity and marketability of the Bonds and such instruments, including any heretofore furnished, shall be dcemt×t representations of the City as to the facts stated therein. 5.02. q he Mayor and City Administrator are authorized and directed to certify that they have examined thc OltSr;ial Statement prepared and circulated in connection with the issuance and sale of the Bonds and ibm to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statemem. Sec'~i(m 6~ ~g~x._.Covenant. 6.01. ~1%: City covenants aud agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986~ as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the tin~c of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subje,:t to taxation under the Code and applicable Treasury Regulations, as presently existing or as h;:re~tfter amended and made applicable to the Bonds. 6.02. (a) The City will comply with requirements necessary under the Code to establish and maintain thc {:xclusion from gross income of the interest on the Bonds under Section 103 of the Code, inch tding without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess inve:s'~.mem earnings to the United States if the Bonds (together with other obligations reasonably c:×p.ected to be issued in calendar year 1989) exceed the small-issuer exception amount of $5,000,000. (b) }.'or purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt t~mds (other than private activity bonds) issued by the City (and all subordinate entities of 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)(C) of the Code. 6.03. Thc Ci~ty further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" wirhJrt the meaning of Sections 103 and 141 through 150 of the Code. 6.04. i.~ ord~x to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representafi(ms: Bonds are not "private activity bonds" as def'med in Section 141 of the Code; (b) tl ~c City designates the Bonds as "qualified tax-exempt obligations" for purposes of Secfio[~ 265(b)(3) of the Code; (c)th{'. reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1989 will not exceed $10,000,000; and