2016-007 - Municipal Lease Agreement with Liberty National Bank for fire truck

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financed herewith (less amounts deposited into a reserve fund, if any) then the amount in excess of five percent (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; (3) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or five percent (5 %) of the proceeds of this Lease (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (4) to refrain from taking any action which would otherwise result in the Lessee's obligations under this Lease being treated as "private activity bonds" within the meaning of section 141(b) of the Code; (5) to refrain from taking any action that would result in this Lease being "federally guaranteed" within the meaning of section 149(b) of the Code; (6) to refrain from using any portion of the proceeds of this Lease, directly or indirectly, to acquire or to replace funds 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 this Lease, other than investment property acquired with: (A) proceeds of the Lease invested for a reasonable temporary period of 3 years or less, (B) amounts invested in a bona fide debt service fund, within the meaning of section 1.148 - 1(b) of the rules and regulations of the United States Department of the Treasury ( "Treasury Regulations "), and (C) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed ten percent (10 %) of the proceeds of this Lease; (7) to otherwise restrict the use of the proceeds of this Lease or amounts treated as proceeds of this Lease, as may be necessary, so that this Lease does not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); (8) the Lessee shall pay to the United States of America at least once during each five -year period (beginning on the Commencement Date for this Lease), and no later than the fifth anniversary of such Commencement Date, an amount that is at least equal to ninety percent (90 %) of the "Excess Earnings," within the meaning of section 148(f) of the Code and the Lessee shall pay to the United States of America, not later than 60 days after the final payment made under this Lease, one hundred percent (100 %) of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code; and (9) to maintain such records as will enable the Lessee and the Lessor to fulfill their respective responsibilities under this subsection (m) and section 148 of the Code and to retain such records for at least three years following the final payment made under this Lease. In order to facilitate compliance with the above subsections (m)(8) and (m)(9), to the extent any of the proceeds of this Lease remain unspent five years following the Commencement Date, a "Rebate Fund" shall be established with the Lessee's depository banking institution 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 without limitation the Lessee or the Lessor. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. The Lessor and the Lessee understand that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds