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SECTION 13. In order to preserve the exclusion from gross income of interest <br />on the Bonds under federal law and as an inducement to the purchasers of the Bonds, the <br />Commission on behalf of the Redevelopment District represents, covenants and agrees that: <br />a. No person or entity or any combination thereof, other than the <br />Redevelopment District or the City, will use proceeds of the Bonds or property financed <br />by said proceeds other than as a member of the general public. No person or entity or <br />any combination thereof, other than the Redevelopment District will own property <br />financed by Bond proceeds or will have actual or beneficial use of such property pursuant <br />to a lease, a management or incentive payment contract, an arrangement such as a take - <br />or -pay or other type of output contract or any other type of arrangement that differentiates <br />that person's or entity's use of such property from the use by the public at large of such <br />property; <br />b. No Bond proceeds will be lent to any entity or person. No Bond <br />proceeds will be transferred directly, or indirectly transferred or deemed transferred to a <br />person other than a governmental unit in a fashion that would in substance constitute a <br />loan of said Bond proceeds; <br />C. The Redevelopment District will not take any action or fail to take <br />any action with respect to, the Bonds that would result in the loss of the exclusion from <br />gross income for federal tax purposes of interest on the Bonds pursuant to Section 103(a) <br />of the Internal Revenue Code of 1986, as amended and as in effect on the date of delivery <br />of the Bonds (the "Code "), and the Commission will not act in any manner which would <br />adversely affect such exclusion. The Commission further covenants that it will not make <br />any investment or do any other act or thing during the period that any Bond is <br />outstanding hereunder which would cause any Bond to be an "arbitrage bond" within the <br />meaning of Section 148 of the Code and the regulations applicable thereto as in effect on <br />the date of delivery of the Bonds. The Commission shall comply with the arbitrage <br />rebate requirements under Section 148 of the Code to the extent applicable; and <br />d. All officers, members, employees and agents of the Commission <br />and the City are authorized and directed to provide certifications of facts and estimates <br />that are material to the reasonable expectations of the Commission as of the date the <br />Bonds are issued and to make and enter into covenants on behalf of the Commission <br />evidencing the Commission's recognition of and compliance with the covenants and <br />commitments made herein. In particular and without limiting the foregoing, any and all <br />appropriate officers, members, employees and agents of the Commission the City are <br />authorized to certify and/or enter into covenants for the Redevelopment District regarding <br />the facts and circumstances and reasonable expectations of the Commission on the date <br />the Bonds are issued and the representations, covenants and commitments made by the <br />Commission herein regarding the amount and use of the proceeds of the Bonds. <br />SECTION 14. Notwithstanding any other provisions of this Resolution, the <br />covenants and authorizations contained in this Resolution (the "Tax Sections ") which are <br />designed to preserve the exclusion of interest on the Bonds from gross income under federal law <br />Is (the "Tax Exemption ") need not be complied with if the Redevelopment District receives an <br />- 23 - <br />BDDB01 40102160 <br />