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Section 8.2. ARBITRAGE. During the term of the bonds, the <br />City will make no use of bond proceeds which, if such use had <br />been reasonably expected at the date the bonds are issued, could <br />have caused the bonds to be "arbitrage bonds" within the meaning <br />of Section 148 of the United States Internal Revenue Code of <br />1986, and regulations of the Internal Revenue Service adopted <br />thereunder, and further shall rebate to the United States any <br />amounts actually earned as arbitrage in accordance with the <br />provisions of that Code and those regulations. <br /> <br /> Section 8.3. MAINTENANCE OF TAX EXEMPTION. The City will <br /> <br />take all reasonable actions required to maintain the status of <br />the bonds as bonds exempt from federal income taxes and State of <br />California personal income taxes. <br /> <br /> Section 8.4. REFUNDING. The City covenants that this <br /> <br />Series C bond issue will not be redeemed with funds provided by <br />any subsequent assessment proceedings for additional improvements <br />pursuant to the Municipal Improvement Act of 1913, nor with <br />refunding funds pursuant to the Refunding Act of 1984 for 1915 <br />Improvement Act bonds (Division 11.5 of the Streets and Highways <br />Code) before September 2, 1994. This determination shall not <br />apply to or in any way limit the advancement of maturity of any <br />bond of this Series C issue from proceeds deposited into the <br />redemption fund from prepayments by property owners. <br /> <br /> <br />