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necessary to maintain the Federal income tax exemption for <br /> interest payments made on the Bonds . <br /> SECTION 10 . Tax Covenants . The City hereby covenants that <br /> • it will not make any use of the proceeds of sale of the Bonds or <br /> any other funds of the City which may be deemed to be proceeds of <br /> such Bonds pursuant to Section 148 of the Internal Revenue Code <br /> of 1986 and the applicable regulations thereunder which would <br /> cause the Bonds to be "arbitrage bonds" within the meaning of <br /> said section and said regulations . The City will comply with the <br /> requirements of Section 148 of the Internal Revenue Code of 1986 <br /> and the applicable regulations thereunder throughout the term of <br /> the Bonds . <br /> The City hereby covenants that throughout the term of the <br /> Bonds it will not take any action or enter into any agreement <br /> that will cause the proceeds of the sale of the Bonds to be used <br /> in a manner that would cause any Bond to be classified as a <br /> "private activity bond" with the meaning of Section 141 of the <br /> Internal Revenue Code and the applicable regulations thereunder. <br /> Unless the City has received an opinion of nationally recognized <br /> bond counsel approving a specific action or agreement, the City <br /> will not permit entities other than governmental units to use in <br /> the aggregate more than 10 percent of the Project on a basis <br /> other than as a member of the general public unless payments made <br /> by such users with respect to such uses do not exceed in the <br /> aggregate 10 percent of the principal and interest payments on <br /> the Bonds in each Bond Year and over the term of the Bonds . <br /> -17- PMNOOH.DOC 93/01/08 <br />