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Authorizing the city Amend Documents Relating to its economic development refunding revenue bond series 1983
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Authorizing the city Amend Documents Relating to its economic development refunding revenue bond series 1983
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10/11/2012 10:53:42 AM
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10/11/2012 10:53:38 AM
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City Council - City Clerk
City Council - Document Type
Ordinances
City Counci - Date
11/9/1992
Ord-Res Number
8312-92
Bill Number
85-92
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SENT BY: ICE HILLER ;10-26-92 ; 5;53P9 : COPY CENTER-, - 2192842397:#11 <br /> balance of this Bond plus accrued interest, with no prepayment premium, on August 31, 1993, <br /> August 31, 1998, August 31, 2003, and August 31, 2008. Under no circumstances shall this <br /> paragraph be construed to make this Bond one which is payable on demand except after such <br /> demand has been made and such six (6) months' notice period expired. <br /> 7. If holder receives notice of a Determination of Taxability (as hereinafter defined), <br /> then the rate of interest then payable under this Bond shall automatically be increased by two <br /> and one-half percent (21%) per annum, effective as of the date of receipt by Holder of such <br /> notice, and the monthly payments required hereunder shall be increased, effective as of the first <br /> day of the calendar month following such date of receipt, to an amount sufficient to amortize <br /> the then unpaid principal balance of this Bond, together with interest as increased in accordance <br /> with the provisions of this paragraph, in equal monthly payments over the remainder of the <br /> Amortization Period. As soon as practicable after its receipt of notice of a Determination of <br /> Taxability, Holder shall notify Issuer in writing of its receipt thereof and of the consequent <br /> increase in interest rate and monthly payments required hereunder. In addition to the other <br /> amounts set forth in this paragraph and within thirty (30) days of receipt of a notice setting forth <br /> such amounts, Issuer shall pay to the current and any previous Holder of this Bond the amounts <br /> of additional federal and state income taxes, including penalties and interest thereon, which such <br /> Holder or Holders estimate they have incurred or will incur by reason of such Determination <br /> of Taxability with respect to their current and past tax years, plus a "gross up" amount equal <br /> to all federal, state and local taxes required to be paid by virtue of the receipt of payments under <br /> this sentence (calculated at an assumed federal tax rate of 46% and at the maximum state and <br /> local statutory rates applicable to the payments received) and the provision of this sentence shall <br /> survive the payment of this Bond. Notwithstanding the provisions of paragraph 16 hereof, in <br /> the event a Determination of Taxability occurs as a result(in the reasonable judgment of Holder) <br /> of the act or omission of Issuer, obligation to pay the amounts set forth in the preceding sentence <br /> shall be the personal obligation of Issuer but not of its general partners. In addition, Holder <br /> may, at its option, at any time after receipt of notice of a Determination of Taxability, declare <br /> the unpaid principal balance of this Bond, together with accrued interest thereon and any other <br /> indebtedness due hereunder, due and payable in full, upon at least six (6) months' prior written <br /> notice to Issuer, and Issuer shall pay the same to Holder on the date specified in said notice,plus <br /> a prepayment premium equal to eight percent (8%) of such unpaid principal balance, if such <br /> payment occurs prior to September 1, 1993, <br /> 8. A "Determination of Taxability" shall mean (i)the occurrence of a determination <br /> by the Internal Revenue Service that the interest payable on the Bond (as described in the Loan <br /> Agreement hereinafter described) is includable for federal income tax purposes in the gross <br /> income of Holder (other than during such time as Holder was a substantial user of the Project <br /> or a related person, within the meaning of Section 147(a) of the Internal Revenue Code), or(i) <br /> the receipt by the Holder of an opinion of nationally recognized bond counsel selected by Holder <br /> that the interest payable on the Bond (as described in the Loan Agreement hereinafter described) <br /> is includable for federal income tax purposes in the gross income of Holder (other than dining <br /> such time as Holder was a substantial user of the Project or a related person, within the meaning <br /> of Section 147(a) of the Internal Revenue Code), or (iii) a statement of nationally recognized <br /> - 3 - <br />
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