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. • ,1 <br /> (c) The City obtains an opinion from bond counsel that such substitution (i) is <br /> permitted under Ordinance No. of the City, and (ii)will not cause the interest on the <br /> Refunded Obligations or the Bonds to become subject to federal income taxes and will not cause <br /> any Refunded Bond or Bond to become an "arbitrage bond" as defined in Section 148 of the <br /> Internal Revenue Code of 1986 and the applicable regulations promulgated thereunder (as the <br /> same may be amended, to the extent such amendments apply to the Refunded Obligations or the <br /> Bonds). <br /> The Refunding Trustee agrees to such substitution and withdrawal if the conditions <br /> precedent thereto contained in the Bond Ordinance are met, provided, that the required legal <br /> opinion shall be from nationally-recognized bond counsel. <br /> Section 6. Reinvestment of Proceeds of Acquired Obligations. The proceeds (principal <br /> and interest) and reinvestment proceeds of any Government Obligations or Substitute Obligations <br /> that are not immediately needed to make any required payment as described in Section 2 of this <br /> Agreement shall be reinvested by the Refunding Trustee on the date of receipt for the benefit of <br /> the City and the holders and owners of the Refunded Obligations, as follows: <br /> (a) Such proceeds and reinvestment proceeds shall be reinvested only in direct <br /> noncallable obligations of the United States or non-callable obligations unconditionally guaranteed <br /> by the United States ("Open Markets") purchased at prevailing market prices and for which there <br /> is an established market, or non-callable United States Treasury Certificates, Notes and Bonds-- <br /> State and Local Government Series ("SLGs"), bearing a yield not in excess of 5.165549%; <br /> provided, however, if the Refunding Trustee obtains an opinion from bond counsel that such yield <br /> will not cause interest on the Refunded Obligations or the Bonds to be taxable, the Refunding <br /> Trustee may invest in Open Markets or in SLGs bearing a yield in excess of 5.165549%. <br /> (b) The obligations in which such proceeds are reinvested shall mature not <br /> later than the date the principal thereof and interest thereon are needed to make any required <br /> payment as described in Section 2 of this Agreement and as shown in the then applicable <br /> independent certified public accountant escrow verification. <br /> A-6 FWWWHOME103N3CX.DOC 95109/28 <br />