1998-10-19 Resolution 130 - Laserfiche WebLink

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4 • Y • (e) The Authority will not take any action nor fail to take any action with respect to the bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Bonds pursuant to Section 103 of the Code, nor will the Authority act in any other manner which would adversely affect such exclusion. (fl The Authority covenants that, so long as any of the Bonds remain outstanding, no investment of Bond proceeds will be made, directly or indirectly, which would cause the Bonds to be classified as "arbitrage bonds" within the meaning of Section 148 of the Code or the Arbitrage Regulations. The .:Authority has furnished to the Trustee concurrently with the execution and delivery of this Agreement, signed copies of the arbitrage certificate of the kind contemplated by the Arbitrage Regulations. The Trustee shall have the right in connection with any investment of money in the Sinking Fund or the Operation and Reserve Fund to be made by it to require that the Authority furnish the Trustee an opinion of counsel, experienced in matters relating to the tax exemption of interest payable on obligations of states and their instrumentalities and political subdivisions, to the effect that the proposed investment will not cause the Bonds to be classified as "arbitrage bonds" within the meaning of Section 148 of the code or the Arbitrage Regulations. The Authority covenants that it will not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of • the interest on the Bonds under Section 103 of the Code. The Authority will not directly or indirectly use or permit the use of any proceeds of the Bonds or any other funds of the Authority, or take or omit to take any action that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148(a) of the Code. To that end, the Authority will comply with all requirements of Section 148 of the Code to the extent applicable to the Bonds. In the event that at any time the Authority is of the opinion that for purposes of this Section it is necessary to restrict or limit the yield on the investment of any moneys held by the Trustee under this Agreement, the Authority shall so instruct the Trustee in writing, and the Trustee shall take such action as may be necessary in accordance with such instructions. Without limiting the generality of the foregoing, the Authority agrees that there shall be paid from time to time all amounts required to be rebated to the United States pursuant to Section 148(f) of the Code and any temporary, proposed or final Treasury Regulations as may be applicable to the Bonds from time to time. This covenant shall survive payment in full or defeasance of the Bonds. Notwithstanding any provision of this Section, if the Authority shall provide to the Trustee an opinion of nationally recognized Bond counsel to the effect that any action required under this Section is no longer required, or to the effect that some further action is required, to maintain the exclusion from gross income of the interest on the Bonds pursuant to Section 103 of the Code, the Authority may rely conclusively on such opinion in complying with the provisions hereof. • ::ODMA\PCDOCS\SBDOCS 1\24203\2 -22-