Res90 11261 - Laserfiche WebLink

Browse Search

Section 5.07. Rebate of Excess Investment Earnings to United States. (A) Obligation to Calculate Excess Investment Earnings. The City shall calculate or cause to be calculated the Excess Investment Earnings described in clause (a) of the definition thereof at the times and in the manner required pursuant to all applicable requirements of the Tax Code and the Tax Regulations. (B) Deposits to Rebate Fund; Rebate to United States. The City shall establish and hold a special fund to be known as the Rebate Fund separate and apart from all other funds and accounts established hereunder. Following the calculation by the Treasurer of the amount of Excess Investment Earnings at any time pursuant to the preceding subsection (a), the Treasurer shall deposit in the Rebate Fund an amount equal to the cumulative Excess Investment Earnings (if any) since the prior distribution to the United States pursuant to this subsection (B). The City shall pay from the Rebate Fund an amount equal to Excess Investment Earnings to the United States of America in installments at such times and in such amounts as shall be required under the Tax Code and the Tax Regulations. Payments to the United States of America shall be made to the address prescribed by the Tax Regulations, together with such reports and statements, completed by the City, as may be prescribed by the Tax Regulations. In the event that amounts on deposit in the Rebate Fund are insufficient to make any payment to the United States of America required pursuant to this subsection (B), the City shall make such payment when due hereunder, from any funds which are lawfully available for such purpose. (C) Investment Transactions. The City shall assure that Excess Investment Earnings are not paid or disbursed except as required in this Section 5.07. To that end the City shall assure that investment transactions are on an arm's-length basis. In the event that Nonpurpose Investments consist of certificates of deposit or investment contracts, investment in such Nonpurpose Investments shall be made in accordance with the procedures described in applicable Tax Regulations as from time to time in effect. (D) Maintenance of Records. The City shall keep or cause to be kept, and retain or cause to be retained for a periOd of six (6) years following the retirement of the Bonds, records of the determinations made pursuant to this Section 5.07. (E) Engagement of Professional Services. In order to provide for the administration of this Section 5.07, the City may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the City may deem appropriate. (F) Modification of this Section. Any of the proviSions of this Section 5.07 may be amended, modified or deleted in any manner whatsoever by resolution of the Council, provided that such resolution is accompanied by an opinion of Bond Counsel stating that such amendment, modification or deletion will not cause interest on the Bonds to be includable in gross income of the Owners for federal income tax purposes. -17- 11261