Federal Tax Covenants. Notwithstanding any other provision of this Agreement, absent an opinion of Bond Counsel that the exclusion from gross income of interest on the Tax-Exempt Bonds or any Parity Loans issued on a tax-exempt basis for federal income tax purposes will not be adversely affected for federal income tax purposes, the District covenants to comply with all applicable requirements of the Code necessary to preserve such exclusion from gross income and specifically covenants, without limiting the generality of the foregoing, as follows:
Federal Tax Covenants. (a) As provided in further detail in the Tax Certificate, no direction for the making of any investment or other use of the proceeds of any of the Series 2022 Obligations or of the Projects which would cause such Series 2022 Obligations to be “arbitrage bonds” as that term is defined in section 148 of the Code or “private activity bonds” as that term is defined in section 141 of the Code and the requirements of such sections of the Code and the related Regulations shall be complied with throughout the term of the Series 2022 Obligations. Particularly, the City shall be the owner of the Projects for federal income tax purposes. The City shall not enter into (i) any management or service contract with any entity other than a governmental entity for the operation of any portion of the Projects unless the management or service contract complies with the requirements of such authority as may control at the time or
Federal Tax Covenants. Neither the Lessor nor the Lessee shall take any action or refrain from taking any action, nor shall it cause or, to the best of its ability, allow any other party under its direction or control to do so, except upon the occurrence of an {^} event of default hereunder or under the Indenture or an Event of Non-Appropriation, which act or failure to act could adversely affect the exclusion from gross income for federal income tax purposes of the interest {^}
Federal Tax Covenants. This paragraph G shall apply only if the Landlord finances all or a portion of the Leased Premises with the proceeds of obligations the interest on which is not includable in the gross income of bondholders, (the “Bonds.”) In addition, this paragraph G shall apply only to the discreet physical portion of the Leased Premises financed with such bonds. If Xxxxxx enters into an Operating Agreement with a User, the User must make the following representations in the Operating Agreement:
Federal Tax Covenants. Neither the Lessor nor the Lessee shall take any action or refrain from taking any action, nor shall it cause or, to the best of its ability, allow any other party under its direction or control to do so, except upon the occurrence of an event of default hereunder or under the Indenture or an Event of Non-Appropriation, which act or failure to act could adversely affect the exclusion from gross income for federal income tax purposes of the interest on the Bonds. Neither the Lessor nor the Lessee will make or will direct the making of any investment of the proceeds of the sale of the Bonds which would result in the Bonds being characterized as "arbitrage bonds" under Section 148 of the Code, however, the Lessor and Lessee mutually acknowledge that the Lessee will not have the right to direct the investment of proceeds of the sale of the Bonds. The Lessor shall take all action required under the Code, including the calculation and payment of any rebate necessary to preserve the exclusion from gross income for federal income tax purposes of the interest portion of the Bonds; provided, however, that the Lessor may delegate such responsibility to a third party. In the operation of the Project, the Lessee shall require that any contract comply with all applicable Treasury rules and regulations regarding the private business use of a facility financed with the proceeds of tax exempt obligations. The Lessee acknowledges receipt of instructions from Bond Counsel regarding guidelines the Lessee must follow with regard to any contract.
