My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
1994-05-17 Resolution 91
sbend
>
Public
>
Redevelopment Authority
>
Resolutions
>
1990-1999
>
1994
>
1994-05-17 Resolution 91
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
1/29/2013 8:33:50 AM
Creation date
7/23/2008 5:34:45 PM
Metadata
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
143
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
Show annotations
View images
View plain text
ORIGINAL ISSUE DISCOUNT <br />• For federal income tax purposes, the Bonds maturing on (the "Discount Bonds ") will <br />be considered to have "original issue discount" equal to the difference between their respective original issue prices <br />and the amount payable upon their respective maturities. The original issue price of each Discount Bond will be <br />the initial offering price to the public at which a substantial amount of such Discount Bonds are sold, and the issue <br />date will be the date on which such Discount Bonds are first issued to the public. Under existing law, the original <br />issue discount on a Discount Bond accrued in the hands of a holder is treated for federal income tax purposes as <br />interest which is excludable pursuant to Section 103 of the Code from gross income, assuming compliance by the <br />Authority with its Tax Covenants. The holder's basis for determining gain or loss on a sale, maturity or other <br />disposition of a Discount Bond generally will be equal to the holder's cost, increased by the original issue discount <br />that is accrued during the period that the Discount Bond is held by such holder. Generally, any gain or loss <br />recognized by a holder on a sale, exchange or payment at maturity of a Discount Bond (based on the holder's basis) <br />will be taxable as capital gain or loss (assuming the Discount Bond is held as a capital asset). A holder will <br />recognize a taxable gain or loss on a Discount Bond called prior to maturity on the difference between the holder's <br />basis and the call price of the Discount Bond. Owners of the Discount Bonds should consult their own tax advisors <br />with respect to the computation for federal income tax purposes of the amounts of original issue discount which <br />accrue during the period in which such Discount Bonds are held. Owners of the Discount Bonds should also consult <br />their own tax advisors with respect to the state and local tax consequences arising from the original issue discount <br />of the Discount Bonds. <br />LEGAL MATTERS <br />Certain legal matters incident to the authorization and issuance of the Bonds by the Authority are subject <br />to the approval of Baker & Daniels, South Bend, Indiana, Bond Counsel, whose approving opinion will be delivered <br />with the Bonds. A form of the opinion which Bond Counsel proposes to render is attached to this Official Statement <br />• as Appendix B. Bond Counsel will render a further opinion that the Bonds, the Trust Agreement and the Lease <br />conform as to form and tenor with the terms and provisions thereof as summarized in this Official Statement. Bond <br />Counsel has not been requested to review any information contained in this Official Statement or the appendices <br />hereto, and expresses no opinion thereon and assumes no responsibility in connection therewith, other than the <br />information under the headings "INTRODUCTION," "DESCRIPTION OF THE BONDS," "SECURITY AND <br />SOURCES OF PAYMENT FOR THE BONDS," "TAX MATTERS," "ORIGINAL ISSUE DISCOUNT," <br />"APPENDIX B - -FORM OF BOND COUNSEL OPINION" and "APPENDIX C -- SUMMARY OF CERTAIN <br />LEGAL DOCUMENTS ". Certain legal matters will be passed on for the Authority and the Commission by the <br />corporation counsel for the City, and for the Underwriters by their counsel, Barnes & Thornburg, South Bend, <br />Indiana. <br />ENFORCEABILITY OF REMEDIES <br />The remedies available to the Trustee and the owners of Bonds upon a default are in many respects <br />dependent upon regulatory and judicial actions which are often subject to discretion and delay. Under existing <br />constitutional and statutory law and judicial decisions, including specifically Title 11 of the United States Code (the <br />United States Bankruptcy Code), the remedies provided under the Trust Agreement may not be readily available <br />or may be limited. <br />The various legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as <br />to the enforceability of the various legal instruments by limitations imposed by bankruptcy, insolvency, <br />reorganization, moratorium or other similar laws affecting creditors' rights and by the exercise of judicial discretion <br />in appropriate cases. <br />is -13- <br />
The URL can be used to link to this page
Your browser does not support the video tag.