Reso 2010-1538-1 - Laserfiche WebLink

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. except as follows: . (i) Such amounts may be invested without regard to yield until the date that is 3 years after the date hereof; . (ii) Such amounts that represent investment earnings may be invested without regard to yield for a I-year period beginning on the date of receipt thereof; and (iii) An additional amount not in excess of $100,000 may be invested without regard to yield. . (c) Amounts in the Bond Fund that are not to be used within 13 months of the date of receipt thereof (12 months if the amounts are interest or income from the investment of such amounts) to pay debt service on the Bonds will not be invested in taxable investments that produce a yield over the term of the Bonds that is materially higher than the yield on the Bonds (within the meaning of 26 CFR Sec. 1.148-2(d)(2)) except to the extent that the aggregate amount so invested does not exceed the difference between $100,000 and any amount invested pursuant to the $100,000 exception under Section 4(b )(iii) hereof. . . (d) There are no funds or accounts in existence or that are expected to be established in addition to the funds referred to herein that are reasonably expected to be used (directly or indirectly) or that will be pledged (directly or indirectly) to pay debt service on the Bonds. There are not any amounts that have been reserved or otherwise set aside such that there is a reasonable assurance that such amounts will be available to pay principal or interest on the Bonds. In addition, the City has not entered into, and does not reasonably expect to enter into within the next thirty days, a hedge contract primarily for the purpose of reducing the City's risk of interest rate changes with respect to the Bonds. If any such fund or account is established after the date hereof, amounts in the fund or account will not be invested at a yield higher than the yield on the Bonds to the extent necessary to preserve the federal income tax exemption of interest on the Bonds. . (t ( e) There are no amounts held under any agreement requiring the maintenance of amounts at a particular level for the direct or indirect benefit of the owners of the Bonds or any guarantor of the Bonds, excluding for this purpose amounts in which the City may grant rights that are superior to the rights of the owners of the Bonds or any guarantor of the Bonds and amounts that do not exceed reasonable needs for which they are maintained and as to which the required level is tested no more frequently than every six (6) months and that may be spent without any substantial restriction other than a requirement to replenish the amount by the next testing date. . (f) There are no amounts that have a sufficiently direct nexus to the Bonds to conclude that the amounts would have been used for debt service on the Bonds if the proceeds of the Bonds were not being used for those purposes. . (g) The yield on the Bonds for purposes of this Section is 4.22%, computed 3 {M1886561_2} .