1995-06-01 - Laserfiche WebLink

Home Browse Search

or borrowed money used or to be used for a Private Business Use, the excess over such five percent (5%) of Net Proceeds of the Bonds used for a Private Business Use shall be used for a Private Business Use related to the governmental use of the System. The City shall assure that not in excess of five percent (5%) of the Net Proceeds of the Bonds is used, directly or indirectly, to make or finance a loan to persons other than state or local governmental units. As used in this subsection (b) , the following terms shall have the following meanings: "Net Proceeds" means the face amount of the Bonds, plus accrued interest and premium, if any, less original issue discount, if any, less any amount deposited into the Debt Service Reserve which is derived from the sale proceeds of the Bonds. "Private Business Use" means use directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a state or local governmental unit and use as a member of the general public. (c) The Series 1995 Bonds are hereby designated as "qualified tax-exempt obligations" within the meaning of Section 265 of the Code. The City represents and covenants that the aggregate principal amount of its qualified tax-exempt obligations (excluding "private activity bonds" within the meaning of Section 141 of the Code which are not "qualified 501 (c) (3) bonds" within the meaning of Section 145 of the Code) , including those of its subordinate entities, to be issued in the current calendar year does not and will not exceed $10, 000, 000 . The City further represents that (i) it does not reasonably expect that the aggregate principal amount of its tax-exempt obligations (including the Series 1995 Bonds but not including "private activity bonds" within the meaning of Section 141 of the Code) , including those of its subordinate entities, issued in the current calendar year will exceed $5, 000, 000 and (ii) the Series 1991 A Bonds were treated as meeting the requirements of Section 148 (f) (2) and (f) (3) by virtue of Section 148 (f) (4) (D) of the Code and (iv) the average maturity date of the Series 1995 Bonds does not exceed that of the Series 1991 A Bonds and (v) the aggregate principal amount of the tax-exempt obligations issued by the City (including subordinate entities) during the year 1991 (not including "private activity bonds" within the meaning of 141 of the Code, and not including the Series 1991 B Bonds, did not exceed $5, 000, 000 . (d) The City covenants that it will take no action which would cause the Series 1995 Bonds to be "federally guaranteed" within the meaning of Section 149 (b) of the Code; specifically, (A) AayMaicO.OD -12-