Ordinance 2012-384 - Laserfiche WebLink

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(2) the delivery to the holder of this Bond or the City of a written opinion of Bond Counsel which is not disputed in good faith by the City to the effect that (i) such interest is included in the gross income of the holder of this Bond for federal income tax purposes under the Code, or (ii) such Bond Counsel cannot render an opinion, without materially qualifying the same (which qualification must also be deemed material in the reasonable opinion of the holder of this Bond and its counsel after consultation with the City), to the effect that interest on this Bond is excludable from the gross income of the owner thereof for federal income tax purposes (without regard to an alternative minimum tax), or (3) interest on this Bond is otherwise declared or determined to be includable in the gross income of the owner thereof for federal income tax purposes by reason of legislation, judgment of a court of competent jurisdiction, or final determination letter of the Internal Revenue Service which judgment or determination letter is final and non- appealable. For all purposes of this Ordinance, a Determination of Taxability shall be deemed to occur with respect to this Bond on the date as of which the interest on this Bond is deemed includable in the gross income of holder of this Bond. "Taxable Rate" means the interest rate on this Bond as adjusted to cause the after tax yield received by the holder of this Bond, after payment of any increase in tax, to equal the after tax yield the holder of this Bond would have received in the absence of such change or amendment in the tax laws or regulations. The Interest Rate on this Bond shall be subject to adjustment as follows. Upon the occun'ence of a Determination of Taxability, the Interest Rate shall be adjusted to the Taxable Rate, as of and from the date such Determination of Taxability would be applicable with respect to this Bond (the "Accrual Date"); and (i) the City shall on the next interest payment date (or if this Bond shall have matured or been redeemed, within 30 days of the date of the Determination of Taxability) pay to the holder, or any former holder, as may be appropriately allocated, an amount equal to the sum of (I) the difference between (A) the total interest that would have accrued on this Bond at the Taxable Rate from the Accrual Date to the date of the Determination of Taxability, and (B) the actual interest paid by the City on this Bond from the Accrual Date to the date of Determination ofTaxability, and (2) any interest and penalties required to be paid as a result of any additional State of Florida and federal income taxes imposed upon such holder and/or former holder arising as a result of such Determination of Taxability; and (ii) from and after the date of the Determination of Taxability, this Bond shall continue to bear interest at the Taxable Rate for the period such determination continues to be applicable with respect to this Bond. This adjustment shall survive payment of this Bond until such time as the federal statute of limitations under which the interest on this Bond could be declared taxable under the Code shall have expired. A-2 MfA 182,397,885vI3-5-12