Ordinance 1433-88 - Laserfiche WebLink

,herewith, or any other funds held under this ordinance which would cause any Bond to be treated as a "private activity bond" as defined in Section 141(b) of the Internal Revenue Code of 1986 then in effect. Section 12 . Rebate of Arbitrage Earnings. The City cove- nants and agrees to calculate the Arbitrage Earnings Amount and to pay the Arbitrage Earnings Amount to the Internal Revenue Service in the manner and at the times required in this section unless nationally recognized bond counsel delivers to the City its opinion that the Arbitrage Earnings Amount must be calculated in another manner, in which case the City covenants and agrees to calculate and pay the Arbitrage Earnings Amount in the manner required by law. A. There is hereby created and established a special fund of the City to be designated "City of Everett Water and Sewer Revenue and Refunding Bonds, 1988, Arbitrage Earnings Fund" (the "Arbitrage Fund" ) to be held separate from other funds and ac- counts of the City and administered by the City. The City shall make deposits into and withdrawals and payments from the Arbitrage Fund at such times and in such manner as provided herein. B. The City shall calculate the Arbitrage Earnings Amount for each Bond Year and shall maintain the Arbitrage Earn- ings Amount in the Arbitrage Fund for the next succeeding Bond Year, less the amounts, if any, previously paid to the United States as provided herein. Investment earnings on amounts in the Arbitrage Fund shall be retained therein. The Arbitrage Earnings Amount shall be calculated as follows: ( 1) The aggregate amount earned on the amounts deposited in the Construction Fund, 1988 Debt Service Sub- account, the 1988 Sinking Fund Account, the 1988 Reserve Account, and the 1988 Advance Refunding Fund for the Computation Period, minus -39- KR180 88/01/11