Resolution No. 4483 - Laserfiche WebLink

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7. 1.8. F or purposes of this section, Series S Notes shall be considered submitted to the Paying Agent on the date the Paying Agent actually receives the materials described in Section 7.(e). 7. 1.9. The City may alter these provisions regarding registration and transfer by mailing notification of the altered provisions to all Series S Noteowners. The altered provisions shall take effect on the date stated in the notice, which shall not be earlier than 45 days after notice is mailed. 7.2 The covenants contained in this Section 7 and any covenants in the closing documents for the Series S Notes shall constitute contracts with the owners of the Series S Notes, and shall be enforceable by them. Section 8. Rebate Compliance. The City (and all subordinate entities thereof, if any) reasonably expects to issue tax-exempt obligations in calendar year 1996 which have an aggregate face amount of more than $5,000,000. Accordingly, the City hereby covenants to pay to the United States any rebates required to be paid in connection with the Notes, unless the City otherwise qualifies for an exemption, under Section 148(f) of the Code. Section 9. Not Bank Qualified. The City (and all subordinate entities, if any) reasonably anticipates that it will issue more than $10,000,000 of tax-exempt obligations during calendar year 1996. The City does not designate the Notes as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). Section 10. Tax-Exempt Status. The City covenants for the benefit of the Owners of the Notes to comply with all provisions of the Code which are required for interest on the Notes to be excludable from gross income under the Code. The City makes the following specific covenants: 10. 1. The City will not take any action or omit any action if it would cause the Notes to become "arbitrage bonds" under Section 148 of the Code, and shall pay all penalties and rebates to the United States which are required by Section 148(f) of the Code. 10.2. The City shall operate the facilities financed with the Notes, and use the proceeds of the Notes, so that the Notes are not "private activity bonds" within the meaning of Section 141 of the Code. Section 11. Defeasance. The City may defease the Notes by setting aside, with a duly appointed escrow agent, in a special escrow account irrevocably pledged to the payment of the Notes to be defeased, cash or direct obligations of the United States in an amount which, in the opinion of a certified public accountant satisfactory to the escrow agent, without reinvestment, is at least equal to the principal amount of the Notes to be defeased, plus interest which will accrue thereon until Page 6 - Resolution No. _ J :\HWR \CITIES\EUGENE\BAN96\BAN96RES.DOC4/11/96