Reso 2010-1538-1 - Laserfiche WebLink

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- . . EXHIBIT "B" ARBITRAGE COVENANTS . The City of Sunny Isles Beach, Florida (the "City") hereby covenants to comply with the following provisions and procedures to insure that its $15,000,000 Capital Improvement Revenue Bonds, Series 2010 (the "Bonds"), being issued on the date hereof, in order to comply with the arbitrage requirements of Section 148 of the Code. 1. Definitions . G) Capitalized terms used herein but not otherwise specifically defined have the same meanings as when used in the Tax Certificate to which this document is attached. . (k) Terms used herein and in 26 CFR Secs. 1.148-1 - 1.148-11 that are not capitalized have the same meanings as when used in such regulations. (1) The following definitions apply for purposes of this document: . "Calculation Date" means the same day in each calendar year selected by the City and the date the last Bond is discharged. . "Gross Proceeds" means: (i) all amounts actually or constructively received from the sale of the Bonds (exclusive of accrued interest) and all amounts derived from the investment thereof; and (ii) all amounts that are part of a sinking fund or reserve or replacement fund for the Bonds. Such term shall not include amounts that are part of a bona fide debt service fund for the Bonds. ,- "Rebate Account Requirement" as of any Calculation Date means the rebate amount with respect to the Bonds as of such date calculated in the manner provided in 26 CFR Secs. 1.148-1 -1.148-11. Investments need be taken into account in calculating to rebate amount to the extent that such amounts are eligible for an exemption from the requirements of Section 148 of the Code under Section 148(f) of the Code. . "Rebate Payment Date" means sixty (60) days after each succeeding fifth Calculation Date. 2. In General In order for interest on the Bonds to be excluded from gross income for federal . income tax purposes, arbitrage profits earned from investing all the Gross Proceeds must be paid to the United States no later than each Rebate Payment Date. B-1 {M1886561_2} .