1/18/1978 - Laserfiche WebLink

Home Browse Search

M of the Project will have been expended within three years from the date hereof; (f) An amount not exceeding 15% of the original proceeds of the Bonds, $272,250, may be invested without yield restrictions as a part of: (i) the initial deposit of $100,000 of Bond proceeds into the Sinking Fund Reserve; and (ii) the possible subsequent transfer of additional proceeds from the Operating Reserve to either the Sinking Fund Reserve or the Renewal and Replacement Fund, pursuant to Section 15B(1) of the resolution authorizing the Bonds. (g) The balance of the proceeds of the Bonds held in the Operating Reserve will be invested without yield restriction for a period not exceeding three years from the date hereof and will either be spent for operation and maintenance of the System during the first year after date hereof, or will be transferred to the Renewal and Replacement Fund, and, after three years from the date hereof, will be invested at an actuarial yield not greater than 1/8 of 1% higher than the actuarial yield on the Bonds. (h) The Project will not be sold or otherwise disposed of,.in whole or in part, prior to the last maturity of.the Bonds. 2. The Issuer has not received notice that its Arbitrage Certificate may not be relied upon with respect to its issues of obligations, nor has it been advised that any such adverse action is contemplated by the Commissioner of Internal Revenue. 3. To the best of my knowledge and belief, there are no facts, estimates or circumstances other than those expressed herein that would materially affect the expectations herein expressed. On the basis of the foregoing, I expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of Section 103 of the Internal Revenue Code of 1954, as amended, and Rules and Regulations promulgated thereunder. -2- JAN 181978 BCOK 33 PAGE4"'75