Arbitrage Covenants. (a) Subject to the limitations on its liability as stated herein and to the extent permitted by law, the Authority covenants and agrees that (i) it has not knowingly engaged and will not knowingly engage in any activities and that it has not knowingly taken and will not knowingly take any action which might result in any interest on the Bonds becoming includable in the gross income of the owners thereof for purposes of federal income taxation, and (ii) it will take the action required by it to be taken hereunder and will cooperate, to the extent reasonably possible without incurring additional costs, with the Borrower in maintaining the Tax-exempt status of interest on the Bonds. Without limiting the generality of the foregoing, the Authority covenants and agrees that it will comply with the requirements of the Tax Certificate. The Borrower has made certain tax covenants in Sections 5.8 of the Agreement and in the Tax Certificate.
(b) The Borrower has covenanted in the Loan Agreement, and agreed in the Tax Certificate, to pay or cause to be paid to the United States rebate payments with respect to the Bonds as provided in the Tax Certificate. The Trustee agrees to comply with all specific written instructions of the Borrower given pursuant to the Loan Agreement, the Tax Certificate and the terms hereof with respect to such rebate payments; provided, however, that the Trustee shall not be responsible in any way for any rebate calculations or other arbitrage calculations, and provided further that the Borrower shall be responsible for such instructions complying with the Tax Certificate. The Trustee conclusively shall be deemed to have complied with the provisions of this Section 6.06(b) if it follows the written directions of the Borrower set forth in the instructions required by the Loan Agreement and the Tax Certificate and shall not be required to take any action under this Section 6.06(b) in the absence of such written directions from the Borrower. The Trustee shall not be liable for any consequences resulting from its failure to act if no written instructions from the Borrower (or in the absence of Borrower instructions, written instructions from the Authority) are delivered to it. The Trustee has no duty or obligation to confirm that any written investment directions provided to it comply with the provisions of the Tax Certificate.
(c) Notwithstanding any provision of this Section, if the Borrower shall provide to the Trustee and the Authority an opin...
Arbitrage Covenants. 17 Section 7.06. Payment to Rebate Fund. . . . . . . . . . . . . . . . 17 Section 7.07. Qualification in Texas . . . . . . . . . . . . . . . 17 Section 7.08. Recordation . . . . . . . . . . . . . . . . . . . . . 17 Section 7.09.
Arbitrage Covenants. The Issuer and the Company covenant and agree, for the benefit of the Trustee and the owners of the Bonds, that they will not knowingly take any action or omit from taking any action within their respective control, which would result in a loss of the exemption from federal income taxation of interest on the Bonds by virtue of the Bonds being considered "arbitrage bonds" within the meaning of Section 148 of the Code.
Arbitrage Covenants. The City shall not, subsequent to the date of the issuance and delivery of the Series 2022 Bond, intentionally use any portions of the proceeds of the Series 2022 Bond to acquire higher yielding investments, or to replace funds which were used directly or indirectly to acquire higher yielding investments, except as may otherwise be permitted by the Code, including, but not limited to, complying with the requirements of Section 148(f) of the Code and the payment of rebate, if any, required to be made by the Authority, and that it will expend the proceeds of the Series 2022 Bond in compliance with the applicable provisions of Section 141 to 149, inclusive, of the Code.
Arbitrage Covenants. The Authority covenants that during the term of this Agreement the Authority will faithfully observe and perform, or cause to be performed, all of its covenants, conditions and agreements contained in the Tax Certificate.
Arbitrage Covenants. The Authority and the Owner certify and covenant that so long as the Bonds remain outstanding, money on deposit in any fund or account in connection with said Bonds, whether or not such monies were derived from the proceeds of the Bonds or from any other sources, will not be used, allowed to accumulate or invested in a manner which will cause such Bonds to be “arbitrage bonds” within the meaning of Section 103(c) of the Code and any regulations promulgated or proposed thereunder, as the same presently exist or may from time to time hereafter be amended, supplemented or revised. The parties reserve the right, however, to make any investment of such monies if, when, and to the extent that said Section 103(c) or regulations promulgated hereafter shall be repealed ore relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation or decision would not result, in the opinion of counsel of recognized competence in such matters, in making the interest on the Bonds subject to Federal income taxation. Under Treasury Regulations in effect under Section 103(c) of the Code on the date of issuance of the Bonds, the yield on Investment Obligations in which the Project Fund is invested will be restricted to the yield on the Bonds. The requirements for’ expenditure of Project Fund investment earnings contained in Articles V and VI of the Indenture shall be observed and the Bond proceeds expended within three (3) years of Bond issuance (or other applicable temporary front end safe harbor period).
Arbitrage Covenants. Each of the Sublessor and Sublessee covenants that it will not make, or request or permit the Trustee or the Municipality to make, any use of the proceeds of the Bonds or of any moneys on deposit to the credit of any of the funds created and established by the Indenture, which may be deemed to be proceeds of the Bonds pursuant to Section 103(d) of the Internal Revenue Code of 1954 and the applicable regulations thereunder which, if such use had been reasonably expected on the date of issuance of the Bonds, would have caused the Bonds to be "arbitrage bonds" within the meaning of said Section and said regulations. The Sublessor and Sublessee further covenants that it will comply with the requirements of said Section and said regulations, as the same may be amended from time to time, so long as any Bonds remain Outstanding (as defined in the Indenture).
Arbitrage Covenants. LOAN BY ISSUER; REPAYMENT OF THE LOAN; LOAN PAYMENTS AND ADDITIONAL PAYMENTS.............................. 15
Arbitrage Covenants. The Borrower and the Issuer each covenants to the owners of the Refunding Bonds that, notwithstanding any other provision of this Agreement or any other instrument, it shall take no action, nor shall the Borrower direct the Trustee to take or approve the Trustee's taking any action or direct the Trustee to make or approve the Trustee's making any investment or use of proceeds of the Refunding Bonds or any other moneys which may arise out of or in connection with this Agreement, the Indenture or the project, which would cause the Series 1996 A Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Code. In addition, the Borrower covenants and agrees to comply with the requirements of Section 148(f) of the Code as it may be applicable to the Series 1996 A Bonds or the proceeds derived from the sale of the Refunding Bonds or any other moneys which may arise out of, or in connection with, this Agreement, the Indenture or the Project throughout the term of the Refunding Bonds. No provision of this Agreement shall be construed to impose upon the Trustee any obligation or responsibility for compliance with arbitrage regulations, except as provided in the Indenture. (End of Article III)
Arbitrage Covenants. Neither the Authority nor the County shall, subsequent to the date of the issuance and delivery of the Series 2022 Bonds, intentionally use any portions of the proceeds of the Series 2022 Bonds to acquire higher yielding investments, or to replace funds which were used directly or indirectly to acquire higher yielding investments, except as may otherwise be permitted by the Code, including, but not limited to, complying with the requirements of Section 148(f) of the Code and the payment of rebate, if any, required to be made by the Authority, and that they will expend the proceeds of the Series 2022 Bonds in compliance with the applicable provisions of Section 141 to 149, inclusive, of the Code.
