Ordinance 99-86 - Laserfiche WebLink

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Payment Date or, if such amounts become payable after the BAN Maturity Date within 60 days of the date the City is notified by the Bank that such amounts are due. In addition to the foregoing provisions of this section, the BAN Interest Rate shall be adjusted automatically as of the effective date of any change in the Maximum Corporate Tax Rate (hereinafter defined) or in the Preference Reduction Rate (hereinafter defined), presently 20%, based upon the following calculations; provided, however, that if the Bond Anticipation Note is not a Qualified Tax-Exempt Obligation within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), on the date of its original issuance and delivery, or if the Bond Anticipation Note at any time subsequent to its original issuance and delivery no longer qualifies as a Qualified Tax-Exempt Obligation, then the Preference Reduction Rate shall be adjusted as of the date of original issuance and delivery of the Bond Anticipation Note or as of such subsequent date, as the case may be. Upon the occurrence of any of the foregoing events, the BAN Interest Rate shall be adjusted to the product obtained by multiplying the Interest Rate on the Bond Anticipation Note by a fraction, the numerator of which is equal to the sum of: (i) the product of the Fully Taxable Equivalent (hereinafter defined) times one minus the Maximum Corporate Tax Rate in effect as of the day of adjustment, and (ii) the TEFRA Adjustment (hereinafter defined) in effect as of the date of adjustment; and the denominator of which is equal to the sum of: (i) the product of the Fully Taxable Equivalent times one minus the Maximum Corporate Tax Rate in effect as of the date of the original issuance and delivery of the Bond Anticipation Note, and (ii) the TEFRA Adjustment in effect as of the date of the original issuance and delivery of the Bond Anticipation Note. For the purpose hereof: (1) "Maximum Corporate Tax Rate" means on the date of original issuance and delivery of the Bond Anticipation Note 35% and thereafter the maximum marginal rate of income tax imposed on corporations under Section 11 of the Code or any successor provision; (2) "TEFRA Adjustment" means an adjustment equal to the product of the following: Cost of Funds multiplied by the applicable Maximum Corporate Tax Rate multiplied by the applicable Preference Reduction Rate; (3) "Cost of Funds" means one hundred (100) multiplied by a fraction, the numerator of which is equal to the total interest expense of SunTrust Banks, Inc., for its immediately preceding tax year, and the denominator of which is equal to the average total assets of SunTrust Banks, Inc., but at no time will be determined to exceed the cost of Fed Funds; (4) "Preference Reduction Rate" means the percentage reduction to be applied to the amount allowable as a deduction under Chapter I of the Code with respect to any financial institution preference item (as such term is defined in Section 291(e) of the Code); and (5) "Fully Taxable Equivalent" means the ten (10) year U.S. Treasury yield plus 0.95 percent, expressed as a number and not as a percentage. For the purposes of this paragraph and the two preceding paragraphs, all percentages shall be expressed as decimals. In the event that there shall be more than one Interest Rate in effect at the time of any adjustment of the Interest Rate required under this Section, a separate adjustment shall be calculated for each Interest Rate then in effect. 19