02 GO Refunding Bond Ordinance - Laserfiche WebLink

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of Excess Eamings under Section 148(0 of the Code. The Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance xvith the Code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated xvhich modify or expand provisions of the Code, as applicable to the Bonds, the Issuer xvill not be required to comply xvith any covenant contained herein to the extent that such failure to comply, in the opinion of nationally-recognized bondcounsel, xvill not adversely affect the exemption from federal income taxation of interest on the Bonds under Section 103 of the Code. In the event that regulations or rulings are hereafter promulgated xvhich impose additional requirements xvhich are applicable to the Bonds, the Issuer agrees to comply xvith the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Bonds under Section 103 of the Code. In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor of the Issuer to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, xvhich may be permitted by the Code as are consistent xvith the purpose for the issuance of the Bonds. In order to facilitate compliance xvith the above covenant (h), a "Rebate Fund" is hereby established by the Issuer for the sole benefit of the United States of America, and such Fund shall not be subject to the claim of any other person, including xvithout limitation the bondholders. The Rebate Fund is established for the additional purpose of compliance xvith Section 148 of the Code. Section 13. DISPOSITION OF PROJECT. The Issuer covenants that the property constituting the Project originally financed by Refunded Obligations xvill not be sold or otherxvise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally-recognized bond counsel that such sale or other disposition xvill not adversely affect the tax-exempt status of the Bonds. For purposes of the foregoing, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the Issuer shall not be obligated to comply xvith this covenant if it obtains an opinion that such failure to comply xvill not adversely affect the excludability for federal income tax purposes from gross income of the interest. Section 14. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The Issuer hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3) of the Code. In furtherance of such designation, the Issuer represents, covenants and xvarrants the folloxving: (a) that during the calendar year in xvhich the Bonds are issued, the Issuer (including any subordinate entities) has not designated nor xvill designate obligations, xvhich xvhen aggregated xvith the Bonds, xvill result in more than $10,000,000 of "qualified tax-exempt obligations" being issued; and (b) that the Issuer reasonably anticipates that the amount of tax-exempt obligations issued, during the calendar year in xvhich the Bonds are issued, by the Issuer (or any subordinate entities) xvill not exceed $10,000,000. Section 15. CONTINUING DISCLOSURE. (a) Annual Reports. (i) The Issuer shall provide annually to each NRMSIR and any SID, xvithin six months after the end of each fiscal year ending in or after 2003, financial information and operating data xvith respect to the Issuer of the general type included in the 22