03-10-10 Regular Meeting of the La Porte Area Water Authority

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"Rebate Amount" has the meaning stated in section 1.148-3 of the Regulations. "Regulations" means the temporary or final Income Tax Regulations applicable to the Bonds issued pursuant to sections 141 through 150 of the Code. Any reference to a section of the Regulations shall also refer to any successor provision to such section hereafter promulgated by the Internal Revenue Service pursuant to sections 141 through 150 of the Code and applicable to the Bonds. "Yield" of (1) any Investment shall be computed in accordance with section 1.148-5 of the Regulations, and (2) Bonds shall be computed In accordance with section 1.148-4 of the Regulations. In complying with the foregoing covenants, the Authority may rely upon an unqualified opinion issued to the Authority by nationally recognized bond counsel that any action by the Authority or reliance upon any interpretation of the Code or Regulations contained in such opinion will not cause interest on the Bonds to be includable in gross income for federal income tax purposes under existing law. Notwithstanding any other provision of this Resolution, the Authority's representations and obligations under the covenants and provisions of this Section 6.2 shall survive the defeasance and discharge of the Bonds for as long as such matters are relevant to the exclusion of interest on the Bonds from the gross income of the owners for federal income tax purposes. SECTION 6.3. Qualified Tax-Exempt Obligations. The Authority hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265(b )(3) of the Code. With respect to such designation, the Authority represents the following: (a) that during the calendar year 2010, the Authority (including all entities which issue obligations on behalf of the Authority) has not designated nor will designate obligations, which when aggregated with the Bonds, will result in more than $30,000,000 of "qualified tax-exempt obligations" being issued and (b) that the Authority has examined its financing needs for the calendar year 2010 and reasonably anticipates that the amount of bonds, leases, loans or other obligations, together with the Bonds and any other tax-exempt obligations heretofore issued by the Authority (plus those of all entities which issue obligations on behalf of the Authority) during the calendar year 2010, when the higher of the face amount or the issue price of each such tax-exempt obligation issued for the calendar year 2010 by the Authority is taken into account, will not exceed $30,000,000. 27 HOU3003369. ]