Part 2 - Laserfiche WebLink

Home Browse Search

(vi) the payments to the City or the Authority with respect to the ARS correspond exactly, in both time and amount, to the specific interest payments being hedged with respect to the IRS; the payments to the City or the Authority with respect to the IRS correspond exactly, in both time and amount, to the specific interest payments being hedged with respect to the ARS; (vii) payments have not begun to accrue with respect to the ARS on a date earlier than the sale date of the ARS and will not accrue longer than the hedged interest payments on the ARS; payments have not begun to accrue with respect to the IRS on a date earlier than the sale date of the IRS and will not accrue longer than the hedged interest payments on the IRS; (viii) the payments with respect to the ARS are reasonably expected to be made from the same source of funds that, absent the IRS, would be reasonably expected to be used to pay principal and interest on the ARS; the payments with respect to the IRS are reasonably expected to be made from the same source of funds that, absent the ARS, would be reasonably expected to be used to pay principal and interest on the IRS; (ix) the City and the Authority hereby official identify the ARS and the IRS and will identify the ARS and the IRS on their books and records maintained for the 1994 Bonds (such identification will specify the terms of the ARS and the IRS, and the 1994 Bonds) and will note the existence of the ARS and the IRS on all forms filed with the Internal Revenue Service for the 1994 Bonds after the Closing Date (including Forms 8038 and 8038-T, if any); and (x) the ARS and the IRS will be accounted for in accord with the requirements of Treasury Regulations Section 1.148-4(h)13). 4.2 Yield with Respect to Investments of 1994 Bond Proceeds. 4.2.1 Yield Restriction. Unless otherwise authorized by an Opinion of Counsel, all proceeds of the 1994 Bonds (other than proceeds of the 1994 Bonds invested as part of the Minor Portion or pursuant to the yield restriction exceptions set forth in Sections 3.8, 3.10, and 3.11 above) will be invested either (i) in assets that are not Investment Property or (ii) in Investment Property with a yield not exceeding the yield on the 1994 Bonds. 4.2.2 Yield Reduction Payments. For purposes of determining the yield on the Investment Property, any amount paid to the United States in accordance with Treasury Regulations Section 1,148-5(c) is treated as a payment for such Investment Property that reduces the yield on such Investment Property. Treasury Regulations Section 1.148-5(c) provides, inter alia, that (i) yield reduction payments are generally to be made at the same time and in the same manner as rebate payments are required to be paid (see Section 5.5 hereof) or at such other time or in such other manner as the Commissioner of Internal Revenue may provide; and (ii) yield reduction payments may be made with respect to Nonpurpose Investments allocable to proceeds of the 1994 Bonds that qualified for the Three-Year Temporary Period or the One-Year Temporary Period. Ln1-69477.4 12