Reso 2010-1538-1 - Laserfiche WebLink

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. . (f) The City has covenanted to comply with the arbitrage rebate requirements under section 148(f) of the Code to the extent they apply to the Bonds. See Section 3.11 of the Loan Agreement and Exhibit "B" attached hereto. . (g) The City reasonably expects that at least 75 percent of the available construction proceeds within the meaning of section 148(f)(4)(C)(vi) of the Code) of the Bonds will be used for construction expenditures with respect to property owned by the City. . (h) All investments of amounts deposited in any fund or account created by or pursuant to the Loan Agreement, or otherwise containing gross proceeds of the Bonds, within the meaning of section 148 of the Code shall be acquired, disposed of, and valued (as of the date that valuation is required by the Loan Agreement or the Code) at Fair Market Value. For this purpose, Fair Market Value means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise the term Fair Market Value means the acquisition price in a bona fide arm's length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security-State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) any commingled investment fund in which the City and related parties do not own more than a ten percent (10%) beneficial interest therein the return paid by the fund is without regard to the source of investment. . . I . . (i) The City will use a consistently applied accounting method to account for investments and expenditures of proceeds of the Bonds. Allocations of Bond proceeds to expenditures will be made only with respect to a current outlay of cash of the expenditures. The City will not invest proceeds of the Bonds in a commingled fund in which the City owns more than 10 percent of the beneficial interest thereof. The City will maintain books and records until six years after the date of retirement or redemption of the Bonds sufficient to (i) establish the accounting method used, (ii) account for all investment of proceeds of the Bonds, and (iii) substantiate the allocation of proceeds of the Bonds to expenditures. In the event such allocations of Bond proceeds to expenditures are not made within 60 days after the date of five years after the date hereof, the City will use a specific tracing accounting method to account for investment and expenditures of proceeds of the Bonds. '. [Remainder of this page intentionally left blank] .e 6 {MI886561_2} . I