Covenants Regarding Tax Exemption. It is the intention of the Company and the Issuer that the interest on the Bonds be excludable from the gross income of the holders thereof for federal income tax purposes by reason of Section 103(a) of the Code, except for any Bond for any period that such Bond is owned by a person who is a "substantial user" of the Project or a "related person" within the meaning of Section 147(a) of the Code, and that substantially all of the proceeds of the Bonds will be used to provide facilities for the furnishing of water within the meaning of Section 142(a)(4) of the Code and any Regulations promulgated with respect thereto. To that end, the Company and the Issuer (to the extent reasonably within the control of the Issuer) covenant with each other to refrain from any action which would adversely affect, or to take such action to assure, the treatment of the Bonds as obligations described in Section 103(a) of the Code, the interest on which is not includable in the gross income of the holders thereof (other than the income of a "substantial user" of the Project or a "related person" within the meaning of Section 147(a) of the Code) for purposes of federal income taxation. None of the covenants and agreements herein contained shall require either the Company or the Issuer to enter an appearance or intervene in any administrative, legislative or judicial proceeding in connection with any changes in applicable laws, rules or regulations or in connection with any decisions of any court or administrative agency or other governmental body affecting the taxation of interest on the Bonds.
Covenants Regarding Tax Exemption. The Issuer covenants to refrain from any action which would adversely affect, or to take such action as is reasonable and available and within its control to assure, the treatment of the Bonds as obligations described in Section 103(a) of the Code, the interest on which is not included in the “gross income” of the holder (other than the income of a “substantial user” of the Project or a “related person” within the meaning of Section 147(a) of the Code) for purposes of federal income taxation.
Covenants Regarding Tax Exemption. Bonds Purchased in Lieu of Redemption. SECTION 6.12. Nondiscrimination – Sexual Harassment.
Covenants Regarding Tax Exemption. Company's Option to Remarket Bonds Purchased in Lieu of Redemption. SECTION 6.12. Nondiscrimination - Sexual Harassment. SECTION 6.13. Rate Mode Conversion. SECTION 6.14. Liquidity Facility.
Covenants Regarding Tax Exemption. It is the intention of the Company and the Issuer that the interest on the 2008A Bonds be excludable from the gross income of the holders thereof for federal income tax purposes by reason of Section 103(a) of the Code, except for any Bond for any period that such Bond is owned by a person who is a "substantial user" of the Project Facilities or a "related person" within the meaning of Section 147(a) of the Code, and that substantially all of the proceeds of the 2008A Bonds will be used to refinance the 2004B Bonds the proceeds of which were used to provide facilities for the furnishing of water within the meaning of Section 142(a)(4) of the Code and any Regulations promulgated with respect thereto. To that end, the Company and the Issuer (to the extent reasonably within the control of the Issuer) covenant with each other to refrain from any action which would adversely affect, or to take such action to assure, the treatment of the 2008A Bonds as obligations described in Section 103(a) of the Code, the interest on which is not includable in the gross income of the holders thereof (other than the income of a "substantial user" of the Project or a "related person" within the meaning of Section 147(a) of the Code) for purposes of federal income taxation. None of the covenants and agreements herein contained shall require either the Company or the Issuer to enter an appearance or intervene in any administrative, legislative or judicial proceeding in connection with any changes in applicable laws, rules or regulations or in connection with any decisions of any court or administrative agency or other governmental body affecting the taxation of interest on the 2008A Bonds.
Covenants Regarding Tax Exemption. The Borrower further represents, warrants, and covenants as follows:
(a) The Borrower covenants to refrain from any action which would adversely affect, or to take such action to assure, the treatment of the Bonds as obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" of the holder (other than the income of a "substantial user" of the Project or a "related person" within the meaning of section 147(a) of the Code) for purposes of federal income taxation. In particular, but not by way of limitation thereof, the Borrower covenants as follows:
(i) to take such action to assure that the bonds are "exempt facility bonds", as defined in section 142(a) of the Code, at least 95 percent of the proceeds of which are used to provide "qualified residential rental projects" (within the meaning of said section 142(a)(7) of the Code) or property functionally related and subordinate to such facilities; and
(ii) to comply with the terms and conditions of that certain Regulatory Agreement and Declaration of Restrictive Covenants executed in connection with the Bonds, including, without limiting the generality of any other covenant contained herein, - -
(1) assuring that at all times within the Qualified Project Period that 20 percent of the residential units in the Project will be occupied by persons whose income is 50 percent or less of area median gross income or, in lieu thereof, 40 percent of the residential units in the Project will be occupied by persons whose income is 60 percent or less of area median gross income percent,
(2) obtaining annually from each tenant of a residential unit described in subsection (a) above, a certification of income to currently determine income compliance with the foregoing, and
(3) assuring that none of the residential units in the Project will be used for a purpose other than residential rental or that none of the units will be used as owner-occupied residences within the meaning of section 143 of the Code;
(iii) to refrain from taking any action that would result in the Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code;
(iv) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, other than investm...
Covenants Regarding Tax Exemption. It is the intention of the Company and the Issuer that the interest on the Bonds be excludable from the gross income of the holders thereof for federal income tax purposes by reason of Section 103(a) of the Code, except for any Bond for any period that such Bond is owned by a person who is a “substantial user” of the Project or a “related person” within the meaning of Section 147(a) of the Code, and that substantially all of the proceeds of the Bonds will be used to refinance “facilities for the furnishing of water” within the meaning of Section 142(a)(4) of the Code and any Regulations promulgated with respect thereto. To that end, the Company and the Issuer (to the extent reasonably within the control of the Issuer) covenant with each other to refrain from any action which would adversely affect, or to take such action to assure, the treatment of the Bonds as obligations described in Section 103(a) of the Code, the interest on which is not includable in the gross income of the holders thereof (other than the income of a “substantial user” of the Project or a “related person” within the meaning of Section 147(a) of the Code) for purposes of federal income taxation. None of the covenants and agreements herein contained shall require either the Company or the Issuer to enter an appearance or intervene in any administrative, legislative or judicial proceeding in connection with any changes in applicable laws, rules or regulations or in connection with any decisions of any court or administrative agency or other governmental body affecting the taxation of interest on the Bonds. The Trustee shall not be responsible for any determination or calculation concerning arbitrage rebate with respect to the Bonds, or for determining whether the yield on any investments made in accordance with the Indenture would cause, or whether any other facts exist which would cause, any of the Bonds to become “arbitrage bonds” under Section 148 of the Code.
Covenants Regarding Tax Exemption. The Issuer covenants to refrain from any action which would adversely affect, or to take such action as is reasonable and available and within its control to assure, the treatment of the Tax Exempt Bonds as obligations described in Section 103 of the Code, and to assure with respect to the Tax Exempt Bonds that the interest on such Tax Exempt Bonds will not be includable in the "gross income" of the holder (other than the income of a "substantial user" of the Facilities or a "related person" within the meaning of Section 147(a) of the Code) for purposes of federal income taxation.
