No. 2012 authorizing issuance of bonds for purpose of providing funds for refunding outstanding bonds and financing redevelopment projects in SBCAA (No. 1A) and paying incidental expenses in connection therewith and on account of issuance of bonds

Home Browse Search

[A person in an manner that would in substance constitute a loan f the 2 Bond p y o o e 003 o d proceeds. (c) The Commission and the City will not take any action or fail to take any action with respect to the 2003 Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the 2003 Bonds pursuant to Section 103 of the Code, and the regulations thereunder applicable to the 2003 Bonds, including, without limitation, the taking of such action as is necessary to rebate or cause to be rebated arbitrage profits on 2003 Bond proceeds or other monies treated as 2003 Bond proceeds to the federal government as provided in Section 148 of the Code, and will set aside such monies, which may be paid from investment income on funds and accounts notwithstanding anything else to the contrary herein, in trust for such purposes. (d) The City will file an information report Form 8038 -G with the Internal Revenue Service as required by Section 149 of the Code. (e) The Commission and the City will not make any investment or do any other act or thing during the period that any 2003 Bond is outstanding hereunder which would cause any 2003 Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations applicable thereto as in effect on the date of delivery of the 2003 Bonds. Notwithstanding any other provisions of this resolution, the foregoing covenants and authorizations (the "Tax Sections ") which are designed to preserve the exclusion of interest on the 2003 Bonds from gross income under federal income tax law (the "Tax Exemption ") need not be complied with if the City receives an opinion of nationally recognized bond counsel that any Tax Section is unnecessary to preserve the Tax Exemption. Section 12. Additional Bonds. The Commission reserves the right to issue additional bonds and to incur lease obligations (which for all purposes of this resolution shall be deemed to be required bond payments which mature on the date such lease - rental payment obligations are due) after the issuance of the 2003 Bonds, payable solely, or together with other funds of the Commission, out of the Tax Increment and earnings thereon, only as provided in this Section 12 (such bonds and lease obligations are herein referred to as "Additional Bonds "). Such bonds or lease obligations may be issued for the purpose of raising money for future property acquisition or redevelopment in the Area or to provide for a complete or partial refunding of 2003 Bonds or previously issued Additional Bonds. The issuance or incurrence of obligations pursuant to Additional Bonds shall be subject to the following conditions precedent: (a) All interest and principal payments with respect to all 2003 Bonds and previously issued Additional Bonds shall be current to date in accordance with the terms thereof with no payment in arrears, provided, this condition shall be satisfied if any required amount is to be provided from the proceeds of such Additional Bonds or other funds available to the Commission. -16-