2015-070A - Laserfiche WebLink

Home Browse Search

9. NOTE NOT HEDGE BOND. It is reasonably expected that not less than 85% of the proceeds of the Note will be used to carry out the governmental purposes of the Note within three years from the date of the issuance thereof. Not more than 50% of such proceeds will be invested in nonpurpose investments having a substantially guaranteed yield for four years or more (including but not limited to any investment contract or fixed yield investment having a maturity of four years or more). The reasonable expectations stated above are not based on and do not take into account any expectations or assumptions as to the occurrence of changes in market interest rates or of federal tax law or regulations or rulings thereunder. These reasonable expectations are not based on any prepayments of items other than items which are customarily prepaid. 10. ADDITIONAL COVENANTS AND REPRESENTATIONS. The Issuer further agrees to (a) impose such limitations on the investment or use of moneys or investments related to the Note, (b) make such rebate payments to the United States Treasury, (c) maintain such records, (d) perform such calculations, (e) enter into such agreements, and (f) perform such other acts as may be necessary under the Code to preserve the exclusion from gross income for purposes of federal income taxation of interest on the Note, which it may lawfully do. 11. INFORMATION. The Issuer agrees to file all information statements as may be required by the Code. 12. VALUATION AND MARKET PRICE RULES. In determining the amounts on deposit in any fund or account for purposes of this Certificate, the purchase price of the obligations, including accrued interest, shall be added together, and adding or subtracting to such purchase prices any discount, computed ratably on an annual basis. With respect to any amounts required to be restricted as to yield, the "market price rules" set forth in Exhibit A attached hereto shall apply. 13. NO REPLACEMENT. No portion of the amounts received from issuance or sale of the Note will be used as a substitute for other funds which were otherwise to be used for refunding the Refunded Bonds, and which have been or will be used to acquire, directly or indirectly, obligations producing a yield in excess of the Note Yield. 14. AVERAGE LIFE. The weighted average life of the Note does not exceed 120% of the average economic life of the projects financed by the Refunded Bonds. 15. RELIANCE. The Issuer has relied on certain representations made by First Southwest in its certificate attached hereto as Exhibit B. The Issuer is not aware of any facts or circumstances that would cause it to question the accuracy of such representations. 16. NO ADVERSE ACTION. The Issuer has neither received notice that its Certificate may not be relied upon with respect to its issues, nor has it been advised that any adverse action by the Commissioner of Internal Revenue is contemplated. 5