Laserfiche WebLink
Capital Account (for the acquisition of the Equipment) and a Debt Service Account(for payment <br /> of debt service on the Certificate). <br /> 6. Capital Account: Time Test;Due Diligence Test; Expenditure Test. <br /> (a) Costs of Construction and Issuance. The costs of acquiring the Equipment and <br /> issuing the Certificate will be paid from the Capital Account in the Fund. The City reasonably <br /> expects to satisfy the time test,the due diligence test and the expenditure test as set forth below: <br /> (i) Time Test. Substantial binding contracts or commitments for acquiring the <br /> Equipment obligating the expenditure of not less than five percent of the Net Sale Proceeds <br /> of the Certificate have heretofore been entered into or made or will be entered into or made <br /> within six months from the date hereof. "Net Sale Proceeds" is the issue price of the <br /> Certificate less the accrued interest and less any Certificate proceeds deposited in any <br /> reserve fund or account. All such contracts are, or will be,binding obligations of the City. <br /> (ii) Due Diligence Test. The acquisition of the Equipment and the allocation of <br /> the Net Sale Proceeds of the Certificate to expenditures has proceeded and will continue to <br /> proceed with due diligence to completion. The Equipment is estimated to be purchased by <br /> December 31,2022. <br /> (iii) Expenditure Test. Any contract or commitment for the acquisition of the <br /> Equipment heretofore or hereafter executed has provided or will provide for the acquisition <br /> of the Equipment in less than three years from the date hereof; and proceeds of the <br /> Certificate in an amount equal to at least eighty five percent of the Net Sale Proceeds of the <br /> Certificate will be spent in paying the cost of acquisition of the Equipment within three <br /> years from the date hereof. <br /> (b) Costs of Issuance; Transfer. The costs of issuing the Certificate will be incurred <br /> and paid within three years from the date hereof. Any moneys remaining in the Capital Account <br /> after acquisition of the Equipment and payment of the costs of issuing the Certificate will be <br /> transferred to the Debt Service Account unless transferred to the fund of any other purchase as <br /> authorized by law. <br /> (c) Investments. The City shall not invest amounts in the Capital Account at a yield <br /> materially higher than the yield on the Certificate or in obligations exempt from federal income <br /> taxation under Section 103(a) of the Code if and to the extent moneys remain therein after the <br /> earlier of(i)acquisition of the Equipment is complete or, (ii)three years from the date hereof. <br /> 7. Debt Service Account;Funding; Investment Covenants. The principal and interest <br /> on the Certificate are payable from the Debt Service Account. The City has covenanted that any <br /> sums from time to time held in the Capital Account and the Debt Service Account (or any other <br /> account of the City which will be used to pay debt service on the Certificate)in excess of amounts <br /> which under then applicable federal arbitrage regulations may be invested without regard to yield <br /> (after taking into account all temporary periods) shall not be invested at a yield in excess of the <br /> applicable yield restrictions imposed by the arbitrage regulations on such investments. Other than <br /> the Debt Service Account, there is no other fund or account of cash or securities which the City <br /> 2 <br /> 72511770v1 <br />