08-10-09 Common Council Meeting Agenda & Packet

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(c) The City will not take, or cause to permit to be taken by it or by any party under its control, or fail to take or cause or permit to fail to be taken by it or by any party under its control, any action with respect to the Bonds or BANS that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Bonds or BANS pursuant to Section 103 of the Code, nor will the City act in any other manner which would adversely affect such exclusion. The City further covenants that it will not make any investment or do any other act or thing during the period that any Bond or BAN is outstanding hereunder which would cause any Bond or BAN to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations applicable thereto as in effect on the date of delivery of the Bonds or BANS. (d) The City will, to the extent necessary to preserve the exclusion of interest on the Bonds and BANS from gross income for federal income tax purposes, rebate all required arbitrage profits on Bond and BAN proceeds or other moneys treated as Bond or BAN proceeds to the federal government and will set aside such moneys in a Rebate Account to be held by the Controller in trust for such purpose. Section XXII. Com Hance with Tax Sections. Notwithstanding any other provisions of this Ordinance, the covenants and authorizations contained in this Ordinance ("Tax Sections") which are designed to preserve the tax exempt status of interest on the Bonds or BANS or the exclusion of interest on the Bonds or BANS from gross income under federal law ("Tax Exemption") need not be complied with if the City receives an opinion of nationally recognized bond counsel that any Tax Section is unnecessary to preserve the Tax Exemption. Section XXIII. Supplemental Ordinances. Without notice to or consent of the owners of the bonds or BANS herein authorized, the City may, from time to time and at any time, -46- BDDBOI 5738468v1