Ordinance 2012-384 - Laserfiche WebLink

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and within its control, it shall not make or take, or permit to be made or taken on its behalf, any action which, if made or taken, would adversely affect such exclusion under the provisions of the Code. The City acknowledges that the continued exclusion of interest on the Bond from gross income for federal income tax purposes depends, in part, upon compliance with the arbitrage limitations imposed by Sections I 03(b )(2) and 148 of the Code. The City hereby acknowledges responsibility to take all reasonable actions necessary to comply with these requirements. The City hereby agrees and covenants that it shall not permit at any time or times any of the proceeds of the Bond or other funds of the City to be intentionally used, directly or indirectly, to acquire or to replace funds which were used directly or indirectly to acquire any higher yielding investments (as defined in Section 148 of the Code), the acquisition of which would cause the Bond to be an arbitrage bond for purposes of Sections I 03(b )(2) and 148 of the Code. The City further agrees and covenants that it shall do and perform all acts and things necessary in order to assure that the requirements of Sections 1 03(b )(2) and 148 of the Code are met. Specifically, without intending to limit in any way the generality of the foregoing, the City covenants and agrees: (a) to pay to the United States of America at the times required pursuant to Section 148(1) of the Code, the excess of the amount earned on all non-purpose investments (as defined in Section 148(1)(6) of the Code) (other than investments attributed to an excess described in this sentence) over the amount which would have been earned if such non-purpose investments were invested at a rate equal to the yield on the Bond, plus any income attributable to such excess (the "Rebate Amount"); (b) to maintain and retain all records pertaining to and to be responsible for making or causing to be made all determinations and calculations of the Rebate Amount and required payments of the Rebate Amount as shall be necessary to comply with the Code; and (c) to comply with all representations and restrictions contained in any Tax Certificate executed by the City in connection with the Bond. The City understands that the foregoing covenants impose continuing obligations on it to comply with the requirements of Section 103 and Part IV of Subchapter B of Chapter I of the Code so long as such requirements are applicable. Section 3.12. Additional Tax Covenants of the City. For so long as the Bond remains outstanding, the City hereby covenants as follows: (a) It will comply with, and timely make or cause to be made all filings required by, all effective rules, rulings or regulations promulgated by the Department of the Treasury or the Internal Revenue Service; (b) It will not use, invest, direct or permit the investment of the proceeds of the Bond or any investment earnings thereon in a manner that will result in such Bond becoming a "private activity bond" within the meaning of Sections ]41 and 145 of the Code; 9 MIA 182,397, 885vl 3-5-12