O-1991-1755 - Laserfiche WebLink

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. . which were used, directly 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, other than investment property acquired with -- (1) proceeds of the Bonds invested for a reosonable temporary period of three years or less until such proceeds are needed for the purpose for which the bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.10J-13(b)(12) of the Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10% of the proceeds of the Bonds; (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so t1u~.t the Bonds do not otherwise contravene the requirements of section 148 of the Code (reluting to arbitrage) and, to the extent applicable, section 149(d)' of the Code (relating to advance refundings); (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the. Bonds) an amount 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 Stutes of America, not luter limn 60 days after the Bonds have been paid in full, 100% of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code; and (1) to maintain such records as will enable the City to fulfill its responsibilities under this section and section 148 of the Code and to retain such records for at least six years following the final payment of principal and interest o~ the Bonds. It Is the understanding of the City that the covenants contained herein are intended to assure compliance with the Code and any reglllutions or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event thot regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Bonds, the City will not be required to comply with any covenant contained herein to the extent that such modification or expansion, in the opinion of nationally- recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 or the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the City agl'ees to comply with the additional requirements to the extent necessary, in the 25