Ordinance 1433-88 - Laserfiche WebLink

D. The City shall make installment payments from the Arbitrage Fund to the United States as required by law. E . The Arbitrage Earnings Amount shall be calculated within thirty (30) days of the end of the first Bond Year, within thirty (30) days of the end of each subsequent Bond Year, and within sixty ( 60) days of the retirement of the last obligation of the Bonds. Any required deposits into the Arbitrage Fund shall be made within the thirty (30) or sixty ( 60) day period, as the case may be. F. If, during any Computation Period, the Arbitrage Earnings Amount is less than the amounts previously paid to the United States, such a deficit may not be recovered from amounts previously paid to the United States. G. The aggregate amount earned on any fund or account must include all income realized under federal income tax account- ing principles (whether or not the entity earning the income is subject to federal income taxation) with respect to any obligation and with respect to the reinvestment of investment receipts from such obligations . Transaction costs incurred in acquiring, carrying, selling or redeeming such obligations may not be offset in determining the aggregate amount earned. If any investments are retained after retirement of the last obligation of the 1988 Bonds, any unrealized gain or loss as of such retirement date must be taken into account in determining aggregate earnings. Gain or loss must be computed with reference to the fair market value of an obligation or security on the date that it is deposited into any fund or account created hereunder. H. The City covenants and agrees to make payments of the Arbitrage Earnings Amount to the U. S. Treasury in a manner other than as described in this section if necessary to comply with the Internal Revenue Code of 1986, and reserves the right to -41- KR180 88/01/11