2011-02-09 CC Packet - Laserfiche WebLink

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.�rticle•� SA,L� The Public Entity shall not sell any part of its ownership interest in the Real Property unless all of the following have been complied with fully: (i) the sale is made as authorized by law, (ii) the sale is for fair market value (as defined in the Commissioner's Order), and (iii) the written consent of the Commissioner of MIvvIB has been obtained. The proceeds of any such sale shall be distributed as set forth in Minn. Stat. Sec. 16A.695 and the Commissioner's Order. �,rticle N COI�LIAI�CE VVITH 1VIIl�TN. STAT. SEC.16A..645 Al'�T�2 THE CQMMISSIONER'S ORDER Section 4.01 State Bond Financed Property. The Public Entity and the DNR acknowledge and agree that the Pubtic Entiiy's ownership interest in the Reat Property is, or when acquired by the Public Entity will be, "state bond financed property", as such term is used in Mirui. Stat. Sec. 16A.695 and the Commissioner's Order, and, therefore, the provisions contained in such statute and order apply, or will apply, to the Public Entity's ownership interest in the Real Property. Section 4.02 Preservation of Tax E�empt Status. In order to preserve the tax-exempt status of the G.O. Bonds, the Public Entity agrees as follows: A. It will not use the Real Property or use or invest the Program Grant or any other sums treated as "bond proceeds" under Section 148 of the Code including "investment proceeds," "invested sinking funds," and "replacement proc�ds," in such a manner as to cause the G.O. Bonds to be classified as "arbitrage bonds" under Section 148 of the Code. I B. It will deposit into and hold all of the Program Grant that it receives under this Agreement in a segregated non-interest bearing account until such funds are used for payments for the Project in accordance with the provisions contained herein. C. It will, upon written request, provide the CommissioneT of M1vvIB all information required to satisfy the informational requirements set forth in the Code including, but not limited to, Sections 103 and 148 thereof, with respect to the GO Bonds. D. It will, upon the occwrence of any act or omission by the Public Entity or any Counterparty, that could cause the interest on the GO Bonds to no longer be tax exempt and upon direction from the Commissioner of MMB, take such actions and furnish such documents as the Commissioner of M1VIB determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal taxation, which such aetion may include either: (i) compliance with proceedings intended to classify the G.O. Bonds as a"qualified bond" within the meaning of Section 141(e) of the Code, (ii) changing the nature or terms of the Use Contract so that it complies with Revenue Procedure 97-13, 1997-1 CB 632, or (iii) changing the nature of the use of the Real Property so that none of the net proceeds of the G.O. Bonds will be used, direetly or indirectly, in an "unrelated trade or business" or for any "private business use" (within the meaning of Sections 141(b) and 145(a) of the Code), or (iv) comptiance with other Code provisions, regulations, or � revenue procedures which amend or supersede the foregoing. E. It will not otherwise use any of the Program Grant, including earnings thereon, if any, or take or permit to or cause to be taken any action that would adversely affect the exemption from federal income taxation of the interest on the G.O. Bonds, nor omit to take any action necessary to 8 29