2007-05-23 CC Set Agenda & Handouts

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The Public Entity shall not be required to pay.or reimburse the State Entity for any funds above and beyond the full net proceeds of such sale, even if such net proceeds are less than the amount of the Grant actually disbursed. Article IV COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION AND THE COMMISSIONER'S ORDER Section 4.01 State Bond Financed Property. The Public Entity and the State Entity acknowledge and agree that the Public Entity's interest in. the Real Property and, if applicable, the Facility is "state bond :financed property", as such term is used in the G.O. Compliance Legislation and the Commissioner's Order, and, therefore, the provisions contained in such statute an~ order apply to the Public Entity's interest in the Real Property and, if applicable, the Facility and any Use Contracts relating thereto. Section 4.02 Preservation of Tax Exempt Status. In order to preserve the tax-exempt status of the G.O. Bonds, the Public Entity agrees that during the time period that any G.O. Bonds are outstanding and unpaid: A. It will not use the Real Property and, if applicable, the Facility, or use or invest the Grant or any other sums treated as ''bond proceeds" under Section 148 of the Code including "investment proceeds," "invested sinking funds," and "replacement proceeds," in such:a manner as to cause the G.O. Bonds to be classified as "arbitrage bonds" under Section 148 of the Code. B. ' It will deposit into and hold all of the Grant that it receives under this Agreement in a segregated non-interest bearing account unti~ such funds are used for payments for the Project in accordance with the provisions contained herein. . C. It will, upon written request, provide the Commissioner of Finance all information required to satisfy the informational requirements set forth in the Code including, but not limited to, Sections 103 and 148 thereof. D. It will, upon direction from the Commissioner of Finance, take such actions and furnish such documents as the Commissioner of Finance determines to be necessary to ensure that the interest tobe paid on the G.O. Bonds is exempt from federal taxation, which Such action 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 Procedures 93-19 and 97-13, or (ill) compliance with Code provisions, regulations, or revenue procedures which amend or supersede the foregoing. E. It will not otherwise use any of the 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 otherwise omit, take, or cause to be taken any-action necessary to maintain such tax exempt status, and if it should Generic GO Bond Proceeds Grant Agreement for Construction Grants . 13 RDGP-07-OO04-0-FY07 Ver-1212006 (GiIrc GO GA-Cnstrctn Gmt)