Reso 2010-1538-1 - Laserfiche WebLink

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I . . (b) The City shall not enter into any investment contract to invest Gross Proceeds unless: (i) the City makes a bona fide solicitation for an investment contract with specified material terms and receives at least 3 bona fide bids from different reasonably competitive providers of investment contracts that have no material financial interest in the Bonds; (ii) the City purchases the highest-yielding investment contract (net of broker fees) for which a qualifying bid is made; (iii) the determination of the terms of the investment contract takes into account as a significant factor the City's reasonably expected drawdown schedule for the funds to be invested, exclusive of amounts deposited in debt service funds and reasonably required reserve or replacement funds; (iv) the terms of the investment contract are reasonable, including collateral security requirements; (v) the obligor on the investment contract certifies the administrative costs (including any broker fees or commissions) that it is paying (or expects to pay) to third parties in connection with the investment contract; and (vi) the yield on the investment contract is not less than the yield then available from the obligor on reasonably comparable investment contracts offered to other persons, if any, from a source of funds other than gross proceeds oftax-exempt Bond. I. . . (c) The City shall not use Gross Proceeds to purchase a certificate of deposit that is not actively traded in an active secondary market if the certificate of deposit has a fixed interest rate, a fixed principal payment schedule, a fixed maturity, and a substantial penalty for early withdrawal ("CD") unless the yield on the CD is not less than: (i) the yield on reasonably comparable direct obligations of the United States; and (ii) the highest yield that is published or posted by the provider to be currently available from the provider on comparable CDS offered to the public. . (d) The City will first consult with Bond Counsel before entering into any swap agreement with respect to the Bonds. . IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 24th day of March, 2010. CITY OF SUNNY ISLES BEACH, FLORIDA . . . B-3 {MI88656J_21 .