Agenda - Council - 02/13/2007 - Laserfiche WebLink

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• The Mayor and Administrator of the City, or any other officer of the. City authorized to act in their place (the "Officers ") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 23. Negative Covenant as to Use of Certificate Proceeds and Equipm The City hereby covenants not to use the proceeds of the Certificates or the Equipment or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Equipment, in such a manner as to cause the Certificates to be "private activity bonds" within the in anmg of Sections 103 and 141 through 150 of the Code. 24. Tax- Exempt Status of the Certificates; Rebate; Elections 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 Certificates, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Certificates, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the 18 -month expenditure exemption for gross proceeds of the Certificates as provided in Section 1.148- 7(d)(1) of the Regulations. The Mayor, the Administrator or either one of them, are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Certificates as they deem necessary, appropriate or desirable in connection with the Certificates, and all such elections shall be, and shall be deemed and treated as, elections of the City. • 25. Designation of Qualified Tax- Exempt Obligations In order to qualify the Certificates as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Certificates are issued after August 7, 1986; (b) the Certificates are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Certificates as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Code. (d) the 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 entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2006 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2006 have been designated for purposes of Section 265(b)(3) of the Code. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 11 -205-