Special Tax Covenants Clause Samples
Special Tax Covenants. The Borrower covenants that: (a) it will make no use of the monies advanced by the Bank and any interest earned thereon (the "proceeds") which would cause the Note or this Contract to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), or the Treasury Regulations promulgated thereunder; (b) so long as the Contract remains in effect, the Borrower will comply with the requirements of Section 148 of the Code and the applicable Treasury Regulations promulgated thereunder and will not take or omit to take any action which will cause the interest paid or payable under this Contract to be includable in the gross income of the registered owner hereof; (c) the proceeds and the Real Property shall be used exclusively for essential governmental purposes of the Borrower and no use shall be made of the proceeds or of the Real Property, directly or indirectly, which would cause the Note or this Contract to be a "private activity bond" within the meaning of Section 141 of the Code; (d) no part of the payment of principal or interest under this Contract is or shall be guaranteed, in whole or in part, by the United States or any agency or instrumentality thereof; (e) no portion of the proceeds shall be used, directly or indirectly, in making loans the payment of principal or interest with respect to which are to be guaranteed, in whole or in part, by the United States or any agency or any instrumentality thereof; and (f) the Borrower shall not lease or otherwise make any of the Real Property available to any entity if such lease or other availability would cause the interest portion of the Installment Payments to be included in the gross income of the Bank for federal income tax purposes. The Borrower shall file on or before its due date IRS Form 8038-G and shall furnish the Bank with a certified copy of such filing. The Borrower shall not take or omit to take any action that may cause a loss of the federal or state tax-exempt status of the Note or this Contract or the interest thereon.
Special Tax Covenants. The Agency shall not use or permit the use of any proceeds of Bonds or any other funds of the Agency, directly or indirectly, to acquire any securities or obligations, and shall not use or permit the use of any amounts received by the Agency or the Trustee with respect to the Mortgage Loans in any manner, and shall not take or permit to be taken any other action or actions, which would cause any Bond to be an "arbitrage bond" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended (the "Code"), or which would cause any Bond to violate any of the restrictions contained in Section 103A or the applicable Treasury Regulations promulgated thereunder. The Agency shall not take any action or fail to take any action or permit any action to be taken on its behalf or cause or permit any circumstances within its control to arise or continue, if such action or inaction would adversely affect the exemption from Federal income taxation of the interest on the Bonds.
Special Tax Covenants. Section 716 of the Indenture is hereby amended and restated in its entirety to provide as follows: “The Agency shall not use or permit the use of any proceeds of federally tax- exempt Bonds to acquire any securities or obligations, and shall not use or permit the use of any amounts received by the Agency or the Trustee with respect to the Mortgage Loans financed with federally tax-exempt Bonds in any manner, and shall not take or permit to be taken any other action or actions, which would cause any federally tax-exempt Bond to be an “arbitrage bond” within the meaning of Section 148 of the 1986 Code or which would cause any Bond to violate any of the restrictions contained in Section 143 of the 1986 Code or the applicable Treasury Regulations promulgated thereunder. The Agency shall not take any action or fail to take any action or permit any action to be taken on its behalf or cause or permit any circumstances within its control to arise or continue, if such action or inaction would adversely affect the exemption from federal income taxation of the interest on any federally tax- exempt Bonds.”
Special Tax Covenants