HomeMy WebLinkAboutReso. 1987 - 160 - Westside road sewer assessment district no. 1986-6 city of redding shasta county california •
RESOLUTION NO. 4 7/& 0
RESOLUTION AUTHORIZING ISSUANCE OF BONDS
WESTSIDE ROAD SEWER ASSESSMENT DISTRICT NO. 1986-6
CITY OF REDDING, SHASTA COUNTY, CALIFORNIA
The City Council of the City of Redding resolves:
section 1 . RECITALS. On October 6, 1986, the City
Council of the City of Redding adopted its resolution of
intention, as amended, to order improvements in Westside Road
Sewer Assessment District No. 1986-6, City of Redding, Shasta
County, California, the provisions of the Municipal Improvement
Act of 1913 (the "Act" ) . Proceedings taken under the Act led to
the levy of a special assessment by the City of Redding against
parcels of land within the assessment district in the total
amount of $88,424.34. These assessments were recorded in the
office of the County Recorder of the County of Shasta under
Recorder's Serial No. 12713, and thereupon became a lien on each
parcel assessed. The period within which parcel owners might
pay their assessments in cash without interest has expired, and
there remain unpaid assessments in the total amount of
$88,424.34.
Section 2. ISSUANCE OF BONDS. The City Council
hereby authorizes the issuance of improvement bonds under the
provisions of the Improvement Bond Act of 1915 to represent
unpaid assessments . The bonds shall be designated, "Improvement
Bond, City of Redding, Westside Road Sewer Assessment District
No. 1986-6, Series No. 1986-6. " Bonds shall be issued in
denominations of $1000 or integral multiples thereof, except for
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Bond No . 1 which may be an odd amount, and shall be dated June
2, 1987. Bonds shall mature and shall bear interest at the
rates set forth in the table attached as Exhibit A.
Section 3. APPOINTMENT OF PAYING AGENT. REGISTRAR AND
TRANSFER AGENT. The City Council hereby appoints the Bank of
America National Trust and Savings Association as paying agent,
registrar and transfer agent for the bonds in accordance with an
agreement between the City of Redding and Bank of America
National Trust and Savings Association heretofore approved by
the City Council .
Section 4. FORM AND EXECUTION. Bonds shall be issued
as fully registered bonds substantially in the form set forth as
Exhibit B to this resolution. The bonds shall be signed by the
City Treasurer and the City Clerk and the seal of the City shall
be affixed. Both signatures and seal may be reproduced on the
bonds by facsimile, but upon its registration or reregistration
each bond shall be authenticated by the manual signature of the
registrar.
The paying agent shall assign to each bond
authenticated and registered by it a distinctive letter, or
number, or letter and number, and shall maintain a record
thereof which shall be available to the City for inspection.
Section 5 . ESTABLISHMENT OF SPECIAL FUNDS. For
administering the proceeds of the sale of bonds and payment of
interest and principal on the bonds, there are hereby
established five funds to be known as the improvement fund, the
redemption fund, the investment earnings fund, the excess
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investment earnings fund and the special reserve fund,
respectively, for Westside Road Sewer Assessment District
No. 1986-6.
section 5 . 1 . IMPROVEMENT FUND. Except as provided in
Section 5.3, proceeds of sale of the bonds , together with all
amounts paid on the assessments prior to bond issuance, shall be
deposited in the improvement fund to be maintained by the City
Treasurer. Disbursements from the improvement fund shall be
made by the City Treasurer in accordance with the budget of
estimated costs and expenses set forth in the amended engineer's
report heretofore approved by the City of Redding, which report
and budget are subject to modification by the City Council from
time to time as prescribed by the Act.
Section 5 . 2. REDEMPTION FUND. The redemption fund
shall be maintained by the City Treasurer. All payments of
principal and interest installments on the assessments , together
with penalties, if any, shall be deposited in the redemption
fund, which shall be a trust fund for the benefit of the
bondholders . Payment of the bonds at maturity, or at redemption
prior to maturity, and all interest on the bonds shall be made
from the redemption fund.
Section 5 .3 . SPECIAL RESERVE FUND. There is no special
reserve fund for this district.
Section 5 .4. INVESTMENT EARNINGS FUND. The investment
earnings fund will be administered by the City Treasurer in the
manner described in Exhibit C.
Section 5 . 5 . EXCESS INVESTMENT EARNINGS FUND. The
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excess investment earnings fund will be administered by the City
Treasurer in the manner described in Exhibit C.
Section 6. PAYMENT ON BONDS. The principal and
interest on the bonds shall be payable at the office of the Bank
of America National Trust and Savings Association, Corporate
Agency Division, P. 0. Box 37000, San Francisco, California
94137. Principal and interest shall be paid by check, draft or
warrant mailed to the registered owner of each bond at the
owner's address appearing on the register maintained by the
registrar on the 15th day preceding the date of interest payment
or maturity of each bond.
Section 7. REREGISTRATION. Any bond may be
registered to a new owner by completing the assignment
certificate on the reverse of the bond and delivering the bond
to the registrar. Upon reregistration, any bond may be replaced
by one or more bonds of the same maturity and aggregate amount
in denominations of $1000 or any integral multiple thereof.
Section 8. COVENANTS. In the event of a default in
the payment of any bond or any installment of interest thereon,
bondholders shall have the remedies set forth in the Improvement
Bond Act of 1915. In addition, the City Council makes the
following covenants, which shall constitute a contract with the
bondholders:
Section 8. 1 . FORECLOSURE OF LIENS . If any
installment of the principal or interest of any assessment
levied in Westside Road Sewer Assessment District No . 1986-6
becomes delinquent , the City Council shall cause an action to be
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filed in the Superior Court of the County of Shasta to foreclose
the lien of the delinquent assessment under the authority of
Section 8830 and following of the Streets and Highways Code of
the State of California. This action shall be filed not later
than one hundred fifty (150) days after the date of delinquency.
Section 8.2. ARBITRAGE. During the term of the
bonds, the City will make no use of bond proceeds which, if such
use had been reasonably expected at the date the bonds are
issued, would have caused the bonds to be "arbitrage bonds"
within the meaning of Section 148 of the United States Internal
Revenue Code of 1986, and regulations of the Internal Revenue
Service authorized thereby, and further shall rebate to the
United States any amounts actually earned as arbitrage in
accordance with the provisions of that Code and those
regulations, all as more particularly set forth in the detailed
arbitrage covenant attached hereto as Exhibit C and incorporated
herein by reference.
section 8. 3 . MAINTENANCE OF TAX EXEMPTION. The City
will take all reasonable actions required to maintain the status
of the bonds as bonds exempt from federal income taxes and State
of California personal income taxes.
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I HEREBY CERTIFY that the foregoing resolution was
duly and regularly adopted by the City Council of the City of
Redding, Shasta County. California, at a regular meeting
thereof , held on the 19th day of May, 1987,
AYES : Councilmembers Fulton, Gard, Johannessen, & Fulton
NOES: Councilmembers None
ABSENT: Councilmembers Carter
ETHEL A. NICHOLS, City Clerk,
City of Redding, Shasta County, California
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By Alr.
by Connie trohmayer, Druty
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MATURITY SCHEDULE
CITY OF REDDING, WESTSIDE ROAD SEWER A.D. NO. #1986-6
SEPT 2
MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE
1988 $1 ,424.34 6.75%
1989 2,000.00 7. 25
1990 3, 000.00 7. 75
1991 4, 000.00 8.25
1992 4,000. 00 8. 50
1993 4,000. 00 8.60
1994 5,000. 00 8.70
1995 5 ,000.00 8.80
1996 5 ,000.00 8.90
1997 5 ,000.00 9.00
1998 5,000.00 9. 00
1999 5,000.00 9. 00
2000 5,000.00 9. 10
2001 5,000.00 9. 10
2002 5,000. 00 9. 10
2003 5,000. 00 9.25
2004 5,000. 00 9.25
2005 5, 000.00 9. 25
2006 5, 000.00 9. 25
2007 5,000. 00 9.25
TOTAL: $88,424.34
EXHIBITA
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United States of America
State of California
County of Shasta
REGISTERED REGISTERED
Number $
IMPROVEMENT BOND
CITY OF REDDING,
WESTSIDE ROAD SEWER ASSESSMENT DISTRICTNO. 1986-6
SERIES NO. 1986-6
INTEREST RATE MATURITY DATE BOND DATE CUSIP NUMBER
June 2, 1987
REGISTERED OWNER:
PRINCIPAL SUM:
Under and by virtue of the Improvement Bond Act of 1915 ,
Division 10, of the Streets and Highways Code, (the "Act" ) , the City
of Redding , County of Shasta, State of California, (the "City" ) ,
will , out of the redemption fund for the payment of the bonds issued
upon the unpaid portion of assessments made for the acquisition,
work and improvements more fully described in proceedings taken
pursuant to Resolution of Intention No. 86-271 , adopted by the City
Council of the City of Redding, on the 6th day of October , 1986, pay
to the registered owner stated above or registered assigns , on the
maturity date stated above, the principal sum stated above, in
lawful money of the United States of America and in like manner will
pay interest from the interest payment date next preceding the date
on which this Bond is authenticated, unless this Bond is
EXHIBIT B
authenticated and registered as of an interest payment date , in
which event it shall bear interest from such interest payment date ,
or unless this Bond is authenticated and registered prior to March
2, 1988, in which event it shall bear interest from its date, until
payment of such principal sum shall have been discharged, at the
rate per annum stated above, payable semiannually on March 2 and
September 2 in each year commencing on March 2, 1988. Both the
principal hereof and redemption premium hereon are payable at the
principal corporate trust office of Bank of America National Trust
and Savings Association-Corporate Agency Division, or its successor ,
as Transfer Agent , Registrar and Paying Agent , in San Francisco ,
California, and the interest hereon is payable by check or draft
mailed to the owner hereof at the owner 's address as it appears on
the registration books of the Bank, or at such address as may have
been filed with the Bank for that purpose, as of the fifteenth day
immediately preceding each interest payment date.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH IN THE REVERSE SIDE HEREOF WHICH SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This bond will continue to bear interest after maturity at
the rate above stated, provided, it is presented at maturity and
payment thereof is refused upon the sole ground that there are not
sufficient moneys in said redemption fund with which to pay same.
If it is not presented at maturity, interest thereon will run until
maturity.
This Bond shall not be entitled to any benefit under the
Act or the Resolution Authorizing Issuance of Bonds (the "Resolution
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of Issuance" ) , or become valid or obligatory for any purpose, until
the certificate of authentication and registration hereon endorsed
shall have been dated and signed by the Bank.
IN WITNESS WHEREOF , said City of Redding has caused this
bond to be signed in facsimile by the Treasurer of said City and by
its Clerk, and has caused its corporate seal to be reproduced in
facsimile hereon all as of the 2nd day of June , 1987.
CITY OF REDDING
City Clerk City Treasurer
(SEAL)
Certificate of Authentication and Registration
This is one of the Bonds described in the within
mentioned Resolution of Issuance, which has been
authenticated and registered on
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
as paying agent , transfer agent and registrar
By
Authorized Officer
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(REVERSE OF BOND)
CITY OF REDDING
WESTSIDE ROAD SEWER ASSESSMENT DISTRICT NO. 1986-6
ADDITIONAL PROVISIONS OF THE BOND
This bond is one of several annual series of bonds of
like date, tenor and effect , but differing in amounts , maturities
and interest rates , issued by the City of Redding under the Act
and the Resolution of Issuance, for the purpose of providing means
for paying for the improvements described in said proceedings , and
is secured by the moneys in said redemption fund and by the unpaid
portion of said assessments made for the payment of said
improvements , and, including principal and interest , is payable
exclusively out of said fund.
This Bond is transferable by the registered owner
hereof , in person or by the owner 's attorney duly authorized in
writing, at said office of the Bank, subject to the terms and
conditions provided in the Resolution of Issuance, including the
payment of certain charges, if any, upon surrender and
cancellation of this Bond. Upon such transfer, a new registered
Bond or Bonds , of any authorized denomination or denominations , of
the same maturity, for the same aggregate principal amount , will
be issued to the transferee in exchange therefor .
Bonds shall be registered only in the name of an
individual (including joint owners) , a corporation, a partnership
or a trust .
Neither the City nor the Bank shall be required to make
such exchange or registration of transfer of bonds during the
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fifteen (15) days immediately preceding any interest payment date .
The City and the Bank may treat the owner hereof as the
absolute owner for all purposes , and the City and the Bank shall
not be affected by any notice to the contrary.
This bond or any portion of it in the amount of $1 , 000
or any integral multiple thereof , may be redeemed and paid in
advance of maturity upon the second day of March or September in
any year by giving at least 60 days ' notice by registered mail to
the registered owner hereof at such owner ' s address as it appears
on the registration books of the Bank and by paying principal and
accrued interest together with a premium equal to three percentum
of the principal .
I hereby certify that the following is a correct copy of
the signed legal opinion of STURGIS , NESS , BRUNSELL & SPERRY a
professional corporation, Emeryville, California, on file in my
office.
City Clerk
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EXHIBIT C
ARBITRAGE AND REBATE COVENANTS
section 1 . Definitions Applicable to These Covenants
(a) Bonds . The term "Bonds" means the improvement
bonds , issued in the par value of $ 88, 424 . 34 , dated June 2,
1987, by the City of Redding, Westisde Road Sewer Assessment
District No . 1986-6.
(b) Bond Year. The term "Bond Year" means the twelve
month period beginning on June 2 of each year and ending on June
2 of the following year, commencing with the period beginning on
June 2 , 1987 and ending on June 1 , 1988.
(c) Code. The term "Code" means the Internal Revenue
Code of 1986 .
(d) Debt Service. The term "Debt Service" means the
scheduled amount of interest and amortization of principal
payable on the Bonds during the period of computation, excluding
amounts scheduled during such period which relate to principal
which has been retired before the beginning of such period.
(e) Excess Investment Earnings. The term "Excess
Investment Earnings" has the meaning ascribed to it in Section
3(b) hereof .
(f) Excess Investment Earnings Fund. The term "Excess
Investment Earnings Fund" means the account by that name created
by, and held by the City pursuant to this Certificate .
(g) Gross Proceeds . The term "Gross Proceeds" means
the sum of the following amounts :
(i) original proceeds , namely, net amounts (after
payment of all expenses of issuing the Bonds) received
by or for the City as a result of the sale of the Bonds ,
excluding original proceeds which become transferred
proceeds (determined in accordance with applicable
Regulations) of obligations issued to refund in whole
or in part the Bonds ;
(ii) investment proceeds , namely, amounts received
at any time by or for the City, such as interest and
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dividends , resulting from the investment of any original
proceeds (as referenced in clause (i) above) or investment
proceeds (as referenced in this clause (ii) in Nonpurpose
Obligations, increased by any profits and decreased (if
necessary, below zero) by any losses on such investments ,
excluding investment proceeds which become transferred
proceeds (determined in accordance with applicable
Regulations) of obligations issued to refund in whole
or in part the Bonds;
(iii) sinking fund proceeds, namely, amounts, other
than original proceeds, investment proceeds or transferred
proceeds (as referenced in clauses (i) and (ii) above
of the Bonds, which are held in the Redemption Fund and
any other fund to the extent that the City reasonably
expects to use such other fund to pay Debt Service on the
Bonds;
(iv) amounts in the Reserve Fund and in any other fund
established as a reasonably required reserve or replacement
fund;
(v) Investment Property pledged as security for payment
of Debt Service on the Bonds by an ultimate obligor or
a related person or by the City;
(vi) amounts received with respect to loans made with
original proceeds of the Bonds, financing leases entered
into for property acquired with original proceeds of the
Bonds and other obligations acquired to carry out the
governmental purposes of the Bonds ;
(vii) amounts, other than as specified in this
definition, used to pay Debt Service on the Bonds; and
(viii) amounts received as a result of investing amounts
described in this definition.
(h) InyestmentEarnings Fund. The term "Investment
Earnings Fund" means the account by that name created by, and
held by the City pursuant to the provisions hereof.
(i) Investment Property. The term "investment
property" means any security (as said term is defined in section
165(g)(2)(A) or (B) of the Code) , obligation, annuity or
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investment-type property, excluding, however, obligations the
interest on which is exempt from income tax under section 103 of
the Code.
(j) Nonpurpose Obligation. The term "Nonpurpose
Obligation" means any Investment Property which is acquired with
the Gross Proceeds of the Bonds and is not acquired in order to
carry out the governmental purpose of the Bonds .
(k) Project . The term "Project" means the
construction, acquisition and installation of the authorized
public improvements as described in the legal proceedings for
Westside Road Sewer Assessment District No . 1986-6.
(1) Purchase Price. The term "Purchase Price, " for
the purpose of computation of the Yield of the Bonds , has the
same meaning as the term "issue price" in sections 1273(b) and
1274 of the Code, and, in general , means the initial offering
price to the public (not including bond houses and brokers , or
similar persons or organizations acting in the capacity of
underwriters or wholesalers) at which price a substantial amount
of the Bonds are sold or, if the Bonds are privately placed, the
price paid by the first buyer of the Bonds or the acquisition
cost of the first buyer. The term "Purchase Price , " for the
purpose of computation of the Yield of Nonpurpose Obligations ,
means the fair market value of the Nonpurpose Obligations on the
date of use of Gross Proceeds of the Bonds for acquisition
thereof , or if later , on the date that Investment Property
constituting a Nonpurpose Obligation becomes a Nonpurpose
Obligation of the Bonds .
(m) Regulations. The term "Regulation" means
temporary and permanent regulations promulgated under section
148 of the Code.
(n) Resolution. The term "Resolution" means the
Resolution Authorizing Issuance of Bonds adopted by the City
Council of the City on May 19, 1987.
(o) Treasurer . The term "Treasurer" means the City
Treasurer of the City of Redding.
(p) Yield. The term "Yield" means that yield which,
when used in computing the present worth of all payments of
principal and interest (or other payments in the case of
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Nonpurpose Obligations which require payments in a form not
characterized as principal and interest) on a Nonpurpose
Obligation or on the Bonds , produces an amount equal to the
Purchase Price of such Nonpurpose Obligation or the Bonds , all
computed as prescribed in applicable Regulations . For the
purpose hereof, the yield on a Nonpurpose Obligation that
consists of variable rate Investment Property shall be
determined as of the date the Nonpurpose Obligation is acquired
and as of the first day of each Bond Year by assuming that the
rate of interest will be the weighted average rate of interest
for such Investment Property during the preceding one-year
period (or portion thereof in which the Nonpurpose Obligation
was outstanding) . With respect to a Nonpurpose Obligation
purchased on its date of issue, the Yield for the first Bond
Year shall be determined by assuming that the rate of interest
will be the initial rate of interest for such Nonpurpose
Obligation as determined under the prescribed formula on such
date of issue (without regard to any fixed rate initially
applicable to such Nonpurpose Obligation) .
Section 2. No Arbitrage Covenant .
The City shall not take, nor permit nor suffer to be taken by
any other person, any action with respect to the Gross Proceeds
of the Bonds which if such action had been reasonably expected
to have been taken, or had been deliberately and intentionally
taken, on the date of the issuance of the Bonds would have
caused the Bonds to be "arbitrage bonds" within the meaning of
section 148(a) of the Code and Regulations promulgated
thereunder . At no time will the amounts deposited in or
credited to the Improvement Fund, the Redemption Fund, the
Reserve Fund, the Investment Earnings Fund, and the Excess
Investment Earnings Fund be invested in any form of investment
which produces a yield greater than the bond yield.
section 3 . Rebate Covenant.
(a) Creation of Funds. There are hereby created, to
be held by the Treasurer as separate funds distinct from all
other funds and accounts held by the Treasurer under the
Resolution, the Investment Earnings Fund and the Excess
Investment Earnings Fund. All interest earnings and profits on
amounts in all funds established under this Certificate, other
than interest earnings on the Redemption Fund and any other
funds referenced in subsection (c)(5) hereof if such earnings in
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any Bond Year are less than $100,000, shall , upon receipt by the
City, be deposited in the Investment Earnings Fund. In
addition, all interest earnings and profits on Gross Proceeds in
funds held by the City shall upon receipt , be deposited in the
Investment Earnings Fund. Annually, on the last day of each
Bond Year or on the preceding business day in the event that
such last day is not a business day, the Treasurer shall
transfer from the Investment Earnings Fund to the Excess
Investment Earnings Fund for purposes of ultimate rebate to the
United States an amount equal to Excess Investment Earnings , all
as more particularly described in this Section. Following the
transfer referenced in the preceding sentence, the Treasurer
shall transfer all amounts remaining in the Investment Earnings
Fund to the Redemption Fund to be used for the payment. of Debt
Service on the Bonds on the next interest payment date and for
such purpose, Debt Service due from the City on such date shall
be credited by an amount equal to the amount so transferred.
(b) Definition of Excess Investment Earnings. The
City shall calculate Excess Investment Earnings in accordance
with subsection (b) and shall assure payment of an amount equal
to Excess Investment Earnings to the United States in accordance
with subsections (c) and (d) . The term "Excess Investment
Earnings" means an amount equal to the sum of :
(i) the excess of
(A) the aggregate amount earned from the date of
delivery of the Bonds on all Nonpurpose Obligations in
which Gross Proceeds of the Bonds are invested (other
than amounts attributable to an excess described in
this paragraph (i) , over
(B) the amount that would have been earned if the
Yield on such Nonpurpose Obligations (other than amounts
attributable to an excess described in this paragraph (i))
had been equal to the Yield on the Bonds , plus
(ii) any income attributable to the excess described
in paragraph (i) .
(c) Calculation of Excess Investment Earnings . Prior
to the last day of the first Bond Year , the City shall calculate
the Excess Investment Earnings referenced in paragraph (i) of
subsection (b) . Thereafter, prior to the last day of each Bond
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Year and on the date of the retirement of the Bonds , the City
shall calculate the amount of Excess Investment Earnings
referenced in paragraphs (i) and (ii) of subsection (b) . Said
calculations shall be made or caused to be made by the City in
accordance with the following:
(1) Except as provided in (2) , in determining the
amount described in paragraph (i)(A) of subsection (b) ,
the aggregate amount earned on Nonpurpose Obligations
shall include (i) all income realized under federal
income tax accounting principles (whether or not the
person earning such income is subject to federal income
tax) with respect to such Nonpurpose Obligations and
with respect to the reinvestment of investment receipts
from such Nonpurpose Obligations (without regard to
the transaction costs incurred in acquiring, carrying,
selling or redeeming such Nonpurpose Obligations) ,
including, but not limited to, gain or loss realized
on the disposition of such Nonpurpose Obligations
(without regard to when such gains are taken into
account under Section 453 of the Code relating to
taxable year of inclusion of gross income) , and
income under Section 1272 of the Code (relating
to original issue discount) and (ii) any unrealized
gain or loss as of the date of retirement of the Bonds
in the event that any Nonpurpose Obligation is retained
after such date.
(2) In determining the amount described in
paragraph (i) of subsection (b) , Investment Property
shall be treated as acquired for its fair market value
at the time it becomes a Nonpurpose Obligation, so that
gain or loss on the disposition of such Investment
Property shall be computed with reference to such fair
market value as its adjusted basis.
(3) In determining the amount described in paragraph
(i)(B) of subsection (b) , the Yield on the Bonds shall be
determined based on the actual Yield of the Bonds during
the period between the date of issuance of the Bonds and
the date the computation is made (with adjustments for
discount or premium) .
(4) In determining the amount described in paragraph
(ii) of subsection (b) , all income attributable to the
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excess described in paragraph (i) of subsection (b)
must be taken into account, whether or not that income
exceeds the Yield on the Bonds, and no amount may be
treated as "negative arbitrage" .
(5) In determining the amount described in subsection
(b) , there shall be excluded any amount earned on any fund
or account which is used primarily to achieve a proper
matching of revenues and Debt Service within each Bond
Year and which is depleted at least once a year except for
a reasonable carryover amount not in excess of the greater
of one year 's earnings on such fund or account or
one-twelfth of annual Debt Service as well as amounts
earned on said earnings if the gross earnings on all such
funds and accounts for the Bond Year is less than $100,000.
(d) Payment to United States . The Treasurer shall pay
from the Excess Investment Earnings Fund an amount equal to
Excess Investment Earnings to the United States in installments
with the first payment to be made not later than thirty (30)
days after the end of the fifth Bond Year and with subsequent
payments to be made not later than five (5) years after the
preceding payment was due. The Treasurer shall assure that each
such installment is in an amount equal to at least 90 percent of
the Excess Investment Earnings with respect to the Bonds as of
the close of the computation period. Not later than sixty (60)
days after the retirement of the Bonds , the Treasurer shall pay
from the Excess Investment Earnings Fund to the United States
100 percent of the theretofore unpaid Excess Investment Earnings
of the Bonds . In the event that there are any amounts remaining
in the Excess Investment Earnings Fund following the payment
required by the preceding sentence, the Treasurer shall pay said
amounts to the City to be used for any lawful purpose of the
City. The Treasurer shall remit payments to the United States
at the address prescribed by the Regulations as the same may be
in time to time in effect with such reports and statements as
may be prescribed by such Regulations. In the event that , for
any reason, amounts in the Excess Investment Earnings Fund are
insufficient to make the payments to the United States which are
required by this subsection (d) , the Treasurer shall assure that
such payments are made to the United States , on a timely basis ,
from any funds lawfully available therefor .
(e) Further Obligation of Treasurer . The Treasurer
shall assure that Excess Investment Earnings are not paid or
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disbursed except as required herein. To that end, the Treasurer
shall assure that investment transactions are on an arm's length
basis . In the event that Nonpurpose Obligations consist of
certificates of deposit or investment contracts, investment in
such Nonpurpose Obligations shall be made in accordance with the
procedures described in applicable Regulations as from time to
time in effect .
(f) Maintenance of Records . The Treasurer shall keep,
and retain for a period of six (6) years following the
retirement of the Bonds , records of the determinations made
pursuant to the provisions hereof.
(g) Independent Consultants . In order to provide for
the administration of these Arbitrage and Rebate Covenants , the
Treasurer may provide for the employment of independent
attorneys, accountants and consultants compensated on such
reasonable basis as the Treasurer may deem appropriate.
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