Laserfiche WebLink
subsection (b). Thereafter, prior to the last day of each Bond <br />Year and on the date of the retirement of the Bonds, the City <br />shall calculate the amount of Excess Investment Earnings <br />referenced in paragraphs (i) and (ii) of subsection (b). Said <br />calculations shall be made or caused to be made by the City in <br />accordance with the following: <br />(1) Except as provided in (2), in determining the <br />amount described in paragraph (i)(A) of subsection (b), <br />the aggregate amount earned on Nonpurpose Obligations <br />shall include (i) all income realized under federal <br />income tax accounting principles (whether or not the <br />person earning such income is subject to federal income <br />tax) with respect to such Nonpurpose Obligations and <br />with respect to the reinvestment of investment receipts <br />from such Nonpurpose Obligations (without regard to <br />the transaction costs incurred in acquiring, carrying, <br />selling or redeeming such Nonpurpose Obligations), <br />including, but not limited to, gain or loss realized <br />on the disposition of such Nonpurpose Obligations <br />(without regard to when such gains are taken into <br />account under Section 453 of the Code relating to <br />taxable year of inclusion of gross income), and <br />income under Section 1272 of the Code (relating <br />to original issue discount) and (ii) any unrealized <br />gain or loss as of the date of retirement of the Bonds <br />in the event that any Nonpurpose Obligation is retained <br />after such date . <br />(2) In determining the amount described in <br />paragraph (i) of subsection (b), Investment Property <br />shall be treated as acquired for its fair market value <br />at the time it becomes a Nonpurpose Obligation, so that <br />gain or loss on the disposition of such Investment <br />Property shall be computed with reference to such fair <br />market value as its adjusted basis. <br />(3) In determining the amount described in paragraph <br />(i)(B) of subsection (b), the Yield on the Bonds shall be <br />determined based on the actual Yield of the Bonds during <br />the period between the date of issuance of the Bonds and <br />the date the computation is made (with adjustments for <br />discount or premium). <br />(4) In determining the amount described in paragraph <br />6 <br />