O-2002-2566 - Laserfiche WebLink

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. e (i) Levy an ad valorem tax that will be sufficient to provide funds to pay the current interest on the Bon4s ~4 to @'ovide the nec~ssary sinking fipld. all as described in this Ordinance; and (Ii) Keep proper books of record and accoWlt in which full, true, and correct entries will be made of all 4eQIings... activities~ and transa~ions t:elatjng to the FQtlQs create(!. pursuant to this Ordinance, and all books, docwnents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request from any Owner. (c) Covenants ~t!ardin~ Tax Mal!ers, The City covenants to take an~ action to maintain, or refrain from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in "gross income" for federal income tax pW'poses, In furtherance thereot: the City specifically covenants as follows: (i) To refrain from takin8 an~ action which would result in the Bonds being treated as ''private activity bonds" within the meaning of section 141(a) of the Code; (ii) To take any action to assure that no more than 10% of the proceeds of the Bonds or the projects financed therewith are used for any "private business use," as defined in section 141(bX6) of the Code or, if more than 10% of the {>>"oceeds or the projects financed therewith are so ~ that amoWlts, whether or not received by the City with respect to such private business use, do not Wlder the terms of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10% of the debt service on the Bonds, in contravention of section 141(b)(2) of the Code; (Hi) To take any action to assure that in the event that the ''tJrivate business use" described in paragraph (ll) hereof exceeds 5% of the proceeds of the Bonds or the projects financed therewith, then the amotUlt in excess of 5% is used for a ''private business use" which is ''related'' and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (iv) To tak,e QIlY acti.on to assQl'e that no ~oWlt which is greater than the lesser of$5,OOO,000 or 5% of the proceeds of the Bonds is directly or indirectly used to finance loans to persons, other than state or local governmentallBlits, in contravention of section 141(c) of the Code; (v) To refrain from taking any action which would result in the Bonds being "federally guaranteed" within the meanin~ of section 149(b) of the Code; (vil Ex~ep.t to the ext~t permitt~ by ~ection. 148 of th~ c.oQe ll!ld the regulations and rulings therewlder, to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or (0 rqJhtcc:: funds which were ~,. directl~ or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, (vii) To otherwise rt(Strict the use of the pr0cee4s of the Bonds or amoWlts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating. to arbitr3ge) and. to the extent applicablet section 149(d) of the Code (relating to advance refundings); (vi\j) Except to the extent otherwis~ provided in section 148(1) of the C;ode and the regulations and rulings thereunder, to pay to the United States of America at least once during each five year period (beginning on. the dat~ of delivery of the Bonds) an amotUlt that is at least equal to 90% of the "Excess Earnings," within the meaning of section 148(f) of the Code, and to pay to the United States of America, not 13ter thQIl 60 ~ after the Bonds have been paid in fullt 100% of the amoWlt then required to be paid as a result of Excess Earnings lBlder section 148(f) of the Code; (ix). To maintain $u~h records as will enable the City to fulfill its respo{lsibilities under this subsection and sections 141 and 148 of the Code and to retain such records for at least six years following the final payment of principal and interest on the Bonds; and 063939.0001 AUSTIN 280348 13