Reso 2010-1538-1 - Laserfiche WebLink

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. . on the basis of a 360 day year for the actual number of days elapsed and with interest compounded quarterly. For purposes of computing the yield, the issue price of the Bonds is $15,000,000 (the principal amount plus $0 accrued interest). See Exhibit "A" attached hereto. . (h) If any taxable investments are subject to yield restriction under this Section 4, the yield produced by the taxable investments shall be computed over the term of the Bonds on the basis of a 30 day month and 360 day year and with interest compounded quarterly. For purposes of computing yield, the purchase price shall be determined as provided in 26 CFR Sec. 1.148-5, and yield reduction payments to the Internal Revenue Service and brokerage and selling Commissions may be taken into account to extent permitted thereunder. 5. Reimbursement . . The proceeds of the Bonds that will be used for reimbursement of expenditures paid by the City prior to the date of issuance of the Bonds will be applied only to reimburse capital expenditures that (A) were paid no earlier than sixty (60) days before the date of the adoption by the City of a declaration of intent to reimburse such expenditures from the proceeds of obligations, and (B) are reimbursed no later than eighteen (18) months after the later of the date the expenditure was paid or the date the Project is placed in service (but no later than three (3) years after the expenditure is paid). Proceeds used for reimbursement of expenditures will be deposited in the general fund of the City and will not be used to replace funds of the City to be used to refund debt of the City to create a sinking or pledged fund for such debt or the Bonds or otherwise to create replacement proceeds for such debt or for the Bonds. . 6. Qualified Tax-Exempt Obligations . (a) The City reasonably expects that the aggregate face amount of all tax- exempt obligations issued by the City during calendar year 2010 will not exceed $30 million. For purposes of this paragraph (a): (i) The City and all entities that issue obligations on behalf of the City are treated as the City, and all obligations issued by any entity subordinate to another entity are (t treated as issued by such other entity. (ii) The term "obligation" includes any bond or note (whether or not recourse), any warrant, any lease purchase agreement, and any other instrument that is treated as an obligation for purposes of section 103 of the Code, except that such term shall not include: . any private activity bond (as defined in section 141 of the Code) or any current refunding obligation; (iii) An obligation is "tax-exempt" if: (a) interest on the obligation is excluded from gross income for federal income tax purposes; (b) at the time of issuance of the . obligation it was represented to the purchaser that interest on the obligation is or may be excluded from such gross income; or (c) the proceeds of the obligation were derived (directly or 4 {M 1886561_2} .