RES 87418 - Laserfiche WebLink

its terms, any balance remaining in the Insurance Reserve Fund shall be released from the foregoing pledge, lien and security interest and may be transferred to such other fund or account of the City, or otherwise used by the City for any other lawful purposes, as the City may direct. (e) Investments. Any moneys held by the Trustee in the Lease Fund shall be invested (and, upon the Written Request of the City, shall be invested as directed) by the Trustee only in Permitted Investments (as that term is defined in the Trust Agreement) which will mature on or before April 1, 1988 or October 1, 1988 or April 1, 1989, as appropriate. Any moneys held by the Trustee in the Certificate Reserve Fund shall be invested (and, upon the Written Request of the City, shall be invested as directed) by the Trustee in Permitted Investments which will mature on or before the date of the last scheduled Base Rental payment (but not to exceed a term of ten years). Any moneys held by the Trustee in the Insurance Reserve Fund shall be invested (and, upon the Written Request of the City, shall be invested as directed) by the Trustee only in Permitted Investments which will mature within the earlier of one year or the date of the last scheduled Base Rental payment. (f) Tax Covenants. The City and the Corporation will not make any use of the proceeds of the obligations provided herein or any other funds of the City or the Corporation which will cause such obligations to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Code. The City and the Corporation will not make any use of the proceeds of the obligations provided herein or any other funds of the City or the Corporation which will cause such obligations to be "federally guaranteed" and subject to federal income taxation by reason of Section 149(b) of the Code. To that end, so long as any rental payments are unpaid, the City and the Corporation, with respect to such proceeds and such other funds, will comply with all requirements of such Sections 148 and 149(b) and all regulations of the United States Department of the Treasury issued thereunder to the extent that such requirements are, at the time, applicable and in effect. The City further covenants that it will not use or 'permit the use of Capital Projects I and II by any person not an "exempt person" within the meaning of Section 141(a) of the Code or by an "exempt person" (including the City) in an "unrelated trade or business" in such manner or to such extent as would result in the inclusion of interest received hereunder in gross income for federal income tax purposes under Section 103 of the Code. F-12 1456S