Ordinance 1505-88 - Laserfiche WebLink

• SECTION 9 . Excess Earnings Rebate. The City covenants and agrees to calculate or cause to be calculated the Rebate Amount and to pay the Rebate Amount to the Internal Revenue Service in the manner and at the times required in this subsection. (a) A special fund of the City to be known as the "1988 Limited Tax Levy General Obligation Bonds Excess Earnings Fund" (the "Excess Earnings Fund" ) is hereby authorized and created. The City shall make deposits into and withdrawals from the Excess Earnings Fund at such times and in such manner as provided herein or in such other manner as may be required, in the opinion of nationally recognized bond counsel, to maintain the tax-exempt status of the interest on the Bonds. (b) The City shall calculate the Rebate Amount for each Bond Year and shall maintain the Rebate Amount in the Excess Earnings Fund for the next succeeding Bond Year, less the amounts, if any, previously paid to the United States as provided herein. The Rebate Amount shall be calculated as follows: ( 1) The aggregate amount earned on the amounts deposited in the Projects Fund and the Bond Fund for the Computation Period, minus (2 ) The aggregate amount that would have been earned on the amounts deposited in the funds and accounts described in subparagraph ( 1) above for the Computation Period if such amounts had been invested at a yield equal to the actual yield on the Bonds for the Computation Period, plus (3 ) Any income (whether or not that income exceeds the yield on the Bonds) attributable to the excess of the amount computed under subparagraph ( 1) above over the amount computed under subparagraph (2) above. If the gross earnings on the Bond Fund for any Bond Year during the Computation Period are less than $100, 000, the amount -12- KR257 88/07/06