Ordinance 2870-05 - Laserfiche WebLink

Person Use payments described in subsection (4) hereof that is in excess of the five percent limitations described in such subsections (3) or (4) will be for a Private Person Use that is related to the state or local governmental use of the Projects financed with the proceeds of the Bonds, and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds used for the state or local governmental use portion of the Projects financed with the proceeds of the Bonds to which the Private Person Use of such portion of the Projects financed with the proceeds of the Bonds relates. The City further covenants that it will comply with any limitations on the use of the Projects by other than state and local governmental users that are necessary, in the opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. (c) No Designation under Section 265(b). The Bonds are not "qualified tax exempt obligations for investment by financial institutions under Section 265(b) of the Code. (d) Modification of Tax Covenants. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. To that end, the provisions of this section may be modified or eliminated without any requirement for formal amendment thereof upon receipt of an opinion of the City's bond counsel that such modification or elimination will not adversely affect the tax exemption of interest on any Bonds. Wel Section 11. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA [STATEMENT OF INSURANCE] -39- P:\CMW\CMW6WH 09/06/05