COM 1109.000 2020-2022 - Laserfiche WebLink

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(iv) If the amount on deposit in the Reserve Account exceeds the Reserve Requirement as of any first day of any Bond Year, such excess shall be withdrawn from the Reserve Account and transferred to the Interest Account as soon as practicable. Funds on deposit in the Reserve Account during the final Bond Year for any particular Series of Bonds may be applied to pay the principal of and interest due on the Bonds of such Series in such final Bond Year so long as the amount on deposit in the Reserve Account following such payments is at least equal to the Reserve Requirement for all other Series of Bonds to remain Outstanding. In addition, funds on deposit in the Reserve Account during the final Bond Year in which any Bonds remain Outstanding may be applied to pay the principal of and interest due on the Bonds in such final Bond Year. Section 3.8. Rebate Fund. (a) The Trustee shall establish and maintain a fund separate from any other fund established and maintained hereunder designated as the Rebate Fund and shall establish a separate Rebate Account and Alternative Penalty Account therein for the 2022 Bonds. All money at any time deposited in the Rebate Account or the Alternative Penalty Account of the Rebate Fund shall be held by the Trustee in trust, for payment to the Treasury Department. A separate subaccount of the Rebate Account and the Alternate Penalty Account shall be established for each Series of Bonds the interest on which is excluded from gross income for federal income tax purposes. All amounts on deposit in the Rebate Fund with respect to the Bonds shall be governed by this Section and the Tax Certificate for such issue, unless the County obtains an opinion of Bond Counsel that the exclusion from gross income for federal income tax purposes of interest payments on such Bonds will not be adversely affected if such requirements are not satisfied. (i) Rebate Account. The following requirements shall be satisfied with respect to each subaccount of the Rebate Account: (A) Annual Computation. Within 55 days of the end of the third and the fifth Bond Year and each fifth Bond Year thereafter, the County shall calculate or cause to be calculated the amount of rebatable arbitrage for each Series of Bonds in accordance with Section 148(0(2) of the Tax Code and Section 1.148-3 of the Rebate Regulations (taking into account any applicable exceptions with respect to the computation of the rebatable arbitrage described in the Tax Certificate for each issue (e.g., the temporary investments exceptions of Section 148(0(4)(B) and (C) of the Tax Code), and taking into account whether the election pursuant to Section 148(f)(4)(C)(vii) of the Tax Code (the "1'/2% Penalty") has been made), for this purpose treating the last day of the applicable Bond Year as a computation date, within the meaning of Section 1.148-1(b) of the Rebate Regulations (the "Rebatable Arbitrage"). The County shall obtain expert advice as to the amount of the Rebatable Arbitrage to comply with this Section. (B) Annual Transfer. .Within 55 days of the end of each Bond Year for which Rebatable Arbitrage must be calculated as required by the Tax Certificate, upon the written direction of an Authorized County Representative, an amount shall be deposited to each subaccount of the Rebate Account by the Trustee from any funds so designated by the County if and to the extent required, so that the balance in the Rebate Account shall equal the amount of Rebatable Arbitrage so calculated by or on behalf of the County in accordance with (A) of this Subsection (a)(i). In the event that immediately following any transfer required by the previous sentence, or the date on which the County determines that no transfer is required for such Bond Year, the amount then on deposit to the credit of the applicable subaccount of the Rebate Account exceeds the amount required to be on deposit therein, upon written instructions from an Authorized County Representative, the Trustee 27