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therein in such obligations as may now or hereafter be permitted to cities of the State <br />by law and which will mature prior to the date on which such money shall be needed, <br />but only to the extent that the same are acquired, valued and disposed of at Fair Market <br />Value. Upon completion of the Project, Bond proceeds (including interest earnings <br />thereon) may be used for other capital projects of the City or shall be transferred to the <br />Debt Service Fund. <br />Section 9. Tax Covenants. The City will take all actions necessary to assure the <br />exclusion of interest on the Bonds from the gross income of the owners of the Bonds to <br />the same extent as such interest is permitted to be excluded from gross income under <br />the Code as in effect on the date of issuance of the Bonds, including but not limited to <br />the following: <br />(a) Private Activity Bond Limitation. The City will assure that the proceeds of <br />the Bonds are not so used as to cause the Bonds to satisfy the private business tests of <br />Section 141(b) of the Code or the private loan financing test of Section 141(c) of the <br />Code. <br />(b) Limitations on Disposition of Project The City will not sell or otherwise <br />transfer or dispose of: (i) any personal property components of the Project other than in <br />the ordinary course of an established government program under Treasury Regulation <br />1.141-2(d)(4); or (ii) any real property components of the Project, unless it has received <br />an opinion of nationally recognized bond counsel to the effect that such disposition will <br />not adversely affect the treatment of interest on the Bonds as excludable from gross <br />income for federal income tax purposes. <br />(c) Federal Guarantee Prohibition. The City will not take any action or permit or <br />suffer any action to be taken if the result of such action would be to cause any of the <br />Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. <br />(d) Rebate Requirement The City will take any and all actions necessary to <br />assure compliance with Section 148(f) of the Code, relating to the rebate of excess <br />investment earnings, if any, to the federal government, to the extent that such section is <br />applicable to the Bonds. <br />(e) No Arbitrage. The City will not take, or permit or suffer to be taken, any action <br />with respect to the proceeds of the Bonds which, if such action had been reasonably <br />expected to have been taken, or had been deliberately and intentionally taken, on the <br />date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds" <br />within the meaning of Section 148 of the Code. <br />(f) Registration Covenant. The City will maintain a system for recording the <br />ownership of each Bond that complies with the provisions of Section 149 of the Code <br />until all Bonds have been surrendered and canceled. <br />W: Word Processing\Ordinances\LTGO Bonds-Street improvements 5-31-17 <br />PM:bjs Page 11 of 16 <br />21 <br />