Ordinance 1599-89 - Laserfiche WebLink

. 1 been earned had the yield on those investments been equal to the 2 yield on the Bonds , plus all income derived from those excess 3 earnings , to the extent and in the manner required by Section 4 148 of the United States Internal Revenue Code of 1986 , as 5 amended (the "Code" ) , and applicable regulations . If the City 6 fails to meet rebate requirements applicable to the Bonds under 7 Section 148 of the Code, the City covenants that, to the extent 8 permitted by that Section, it will pay the penalty provided in 9 Subsection 148(f) (7) (C) if required to prevent interest on the 10 Bonds from being included in gross income for federal income tax 11 purposes . The City certifies that it has not been notified of 12 any listing or proposed listing by the Internal Revenue Service 13 to the effect that it is a bond issuer whose arbitrage certifi- 14 cations may not be relied upon. 15 Section 2. Prior to August 1, 1993 , the Bonds may be 16 redeemed only from special assessment payments . In the event 17 that on or after August 1, 1993 , money and/or "government obli- 18 gations, " as defined in Chapter 39 . 53 RCW as now or hereafter 19 amended, maturing at such time or times and bearing interest to 20 be earned thereon in amounts (together with such money, if 21 necessary) sufficient to pay and retire the Bonds in accordance 22 with their terms , are set aside in or for the account of the 23 Bond Fund for the bonds to effect such payment and retirement, 24 and such money and the principal of and interest on such govern- 25 ment obligations are set aside in a special fund and pledged - 8 -