Ordinance 99-86 - Laserfiche WebLink

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(iv) With respect to the initial advance under the Bond in each of calendar year 2000 and 2001, delivery ofa copy ofa completed and executed Form 8038-G to be filed with the Internal Revenue Service; and (v) With respect to the initial advance under the Bond in each of calendar year 2000 and 2001, delivery of an opinion of the Bond Counsel to the same effect as the opinion of Bond Counsel required under Section 2.6(a)(iii) above. SECTION 2.7 INTEREST RATE ADJUSTMENT. The Interest Rate on the Bond shall be subject to adjustment as set forth in the subsequent proceedings of the City approving the Interest Rate. If the interest on the Bond Anticipation Note becomes includable in the gross income of the Bank for federal income tax purposes as determined in the manner set forth below (herein a "Determination of Taxability") the BAN Interest Rate shall be adjusted so that the Bond Anticipation Note shall bear interest at the Prime Rate. A Determination of Taxability shall have deemed to occur when (i) the Bank has been advised in writing by the Internal Revenue Service that the interest payable on the Bond Anticipation Note must be includable in the gross income of the Bank for federal income tax purposes or (ii) the entry by a court of a final judgment or order or the promulgation by the Internal Revenue Service of a final ruling or decision, in either such case to the effect that the interest on the Bond Anticipation Note is includable for federal income tax purposes in the gross income of the Bank. A Determination of Taxability shall not include inclusion of interest on any Bond Anticipation Note in the income of the Bank for purposes of any alternative minimum tax, environmental tax or branch profits tax or on account of the Bank being a "substantial user" or a "related person" within the meaning of Section 147(a) of the Code. In the case of (i) above, no Determination of Taxability shall be deemed to occur unless the City has been given timely written notice by the Bank of such determination by the Internal Revenue Service and afforded an opportunity to participate in and seek at its own expense, a final administrative determination or determination by a court of competent jurisdiction (from which no further right of appeal exists) as to the existence of such Determination of Taxability; provided that the City, at its own expense, delivers to the Bank an opinion of Bond Counsel to the effect that such appeal or action for judicial or administrative review is not without merit and there is a reasonable possibility that the judgment, order, ruling or decision from which such appeal or action for judicial or administrative review is taken will be reversed, vacated or otherwise set aside. In the event of a Determination of Taxability, the City covenants that it shall also pay any interest, additions to tax or penalties, resulting from the interest on the Bond Anticipation Note being includable in the Bank's gross income for federal income tax purposes, and any arrears in interest resulting from such Determination of Taxability. Any such additional amounts (established to the satisfaction of the City) shall be payable by the City to the Bank on the next succeeding 18