06-08-20 Agenda Packet - Laserfiche WebLink

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a) to cure any ambiguity or formal defect or omission in this Ordinance or in any supplemental ordinance; or b) to grant to or confer upon the owners of the Refunding Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the Refunding Bonds; or c) to procure a rating on the Refunding Bonds from a nationally recognized securities rating agency designated in such supplemental ordinance, if such supplemental ordinance will not adversely affect the owners of the Refunding Bonds; or d) to make any other change which is not to the prejudice of the owners of the Refunding Bonds; or e) to provide for the refunding or advance refunding of the Refunding Bonds. SECTION 24. Tax Matters. In order to preserve the exclusion of interest on the Refunding Bonds which may be issued on a tax-exempt basis (the "Tax-Exempt Bonds") from gross income for federal income tax purposes and as an inducement to purchasers of the Tax- Exempt Bonds, the City represents, covenants and agrees that: a) No person or entity, other than the City or another state or local governmental unit, will use proceeds of the Tax-Exempt Bonds or property financed by the Tax- Exempt Bond proceeds other than as a member of the general public. No person or entity other than the City or another state or local governmental unit will own property financed by Tax- Exempt Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, a management or incentive payment contract, an arrangement such as take-or-pay or output contract, or any other type of arrangement that differentiates that person's or entity's use of such property from the use by the public at large. b) No Tax-Exempt Bond proceeds will be loaned to any entity or person other than a state or local governmental unit. No Tax-Exempt Bond proceeds will be transferred,directly or indirectly, or deemed transferred to a non-governmental person in any manner that would in substance constitute a loan of the Tax-Exempt Bond proceeds. c) The City will not take any action or fail to take any action with respect to the Tax-Exempt Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Tax-Exempt Bonds pursuant to Section 103 of the Code, and the regulations thereunder as applicable to the Tax-Exempt Bonds, including, without limitation,the taking of such action as is necessary to rebate or cause to be rebated arbitrage profits on Tax-Exempt Bond proceeds or other monies treated as Tax-Exempt 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 on Form 8038-G with the Internal Revenue Service as required by Section 149 of the Code. 21 -