Res. #11-007 - Accepting Proposals on the Sale of $2,760,000 G.O. Refunding Bond

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Section 16. Certification of Proce�ii�„�s. The officers of the City are hereby authorized and directed to prepare and fumish to the purchaser of the Bonds and to Bradley & Deike, P. A., Bond Counsel, certified copies of a11 proc,eedings and records of the City, and such other affidavits, certificates, and information as may be reyuired to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to tbem, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the Issuer as to the facts r�.ited therein. Section 17. Certificate of Registration. The Clerk is hereby directed to file a certified copy of this resolurion with the County Auditor of Anoka County, Minnesota, together with such other information as he or she sha11 require, and to obtain the County Auditor's Certificate that the bonds have been entered in the County Auditor's Bond Register and that the tax levied herein has been levied as required by law. Section 18. Tax Covenants 18.01. The City covenants and agre�es with the holdeis from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which � would cause the interest on the Bonds to become subject to taxation under the Internal Revenue � Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in I effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, a11 affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury regulations, as I presently existing or as hereafter amended a.nd made applicable to the Bonds. 18.02. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including, without limitation, requirements relating to temporary periods for investrnents, limitations on aznounts invested at a yield greater than the yield on the Bonds, and the rebate of I excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendaz year 2011) exceed the small-issuer exception , amount of $5,000,000. 18.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Section 103 and 141 through 150 of the Code. 18.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds aze not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Cade; 17 i � _