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<br /> <br /> <br /> <br /> <br /> <br /> said Comptroller of Public Accounts (or a deputy designated in writing to act for said <br /> Comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial <br /> Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the <br /> Initial Bond. In addition, if bond insurance is obtained, the Bonds may bear an appropriate <br /> legend as provided by the Insurer. <br /> <br /> Section 30. COVENANTS REGARDING TAX EXEMPTION. The Issuer covenants <br /> not to take any action which would adversely affect, and to take any required action to <br /> ensure, the treatment of the Bonds as obligations described in Section 103 of the Internal <br /> Revenue Code of 1986 (the "Code"), the interest on which is not includable in the "gross <br /> income" of the holder for purposes of federal income taxation. In furtherance thereof, the <br /> Issuer covenants as follows: <br /> <br /> (a) to take any action to assure that no more than 10 percent of the proceeds of the <br /> Bonds (less amounts deposited to a reserve fund, if any) are used for any "private business <br /> use," as defined in Section 141(b)(6) of the Code or, if more than 10 percent of the proceeds <br /> are so used, that amounts, whether or not received by the Issuer, with respect to such private <br /> business use, do not, under the terms of this Resolution, or any underlying arrangement, <br /> directly or indirectly, secure or provide for the payment of more than 10 percent of the debt <br /> service on the Bonds, in rontravention of Section 141(b)(2) of the Code; <br /> <br /> (b) to take any action to assure that in the event that the "private business use" <br /> described in SubSection (a) hereof exceeds 5 percent of the proceeds of the Bonds (less <br /> amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used <br /> for a"private business use" which is "related" and not "disproportionate," within the meaning <br /> of Section 141(b)(3) of the Code, to the governmental use; <br /> <br /> (c) to take any action to assure that no amount which is greater than the lesser of <br /> $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve <br /> fund, if any) is directly or indirectly used to finance loans to persons, other than state or <br /> local governmental units, in contravention of Section 141(c) of the Code; <br /> <br /> (d) to refrain from taking any action which would otherwise result in the Bonds being <br /> treated as "private activity bonds" within the meaning of Section 141(b) of the Code; <br /> <br /> (e) to refrain from taking any action that would result in the Bonds being "federally <br /> guaranteed" within the meaning of Section 149(b) of the Code; <br /> <br /> (f) to refrain from using any portion of the proceeds of the Bonds, directly or <br /> indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire <br /> investment property (as defined in Section 148(b)(2) of the Code) which produces a <br /> materially higher yield over the term of the Bonds, other than investment property acquired <br /> with <br /> <br /> <br /> 34 <br />