08-10-09 Common Council Meeting Agenda & Packet

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gross income of interest on the Bonds, or the tax exempt status of interest on the Bonds, under federal law. (b) The Controller shall keep full and accurate records of investment earnings and income from moneys held in the funds and accounts created or referenced herein. In order to comply with the provisions of this Ordinance, the Controller is hereby authorized and directed to employ consultants or attorneys from time to time to advise the City as to requirements of federal law to preserve the tax exclusion or exemption. Section XXI. Tax Covenants. In order to preserve the exclusion of interest on the Bonds and the BANS from gross income for federal income tax purposes and as an inducement to purchasers of the Bonds and BANS, 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 Bonds or BANS or property financed by the Bond or BAN 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 the Bond or BAN 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 Bond or BAN proceeds will be loaned to any entity or person. No Bond or BAN proceeds will be transferred, directly or indirectly, or deemed transferred to a nongovernmental person in any manner that would in substance constitute a loan of the Bond or BAN proceeds. -45- BDDBO] 5738468v1