TAX-EXEMPT FINANCING. 15.01 Tax-Exempt Financing Pursuant to Section 142(f) of IRC.
TAX-EXEMPT FINANCING. (a) Specified FE Subsidiaries understand and agree that:
(i) the Exempt Facilities have been financed, and refinanced, in whole or in part, with the proceeds of the issuance and sale by various governmental authorities of industrial development revenue bonds or private activity bonds (collectively, the "Revenue Bonds") the interest on which, with certain exceptions, is excluded from gross income for purposes of federal income taxation; and DLC is the economic obligor in respect of such bonds;
(ii) the basis for such exclusion is the use of the Exempt Facilities for the purpose of (A) the abatement or control of atmospheric pollution or contamination (B) the abatement or control of water pollution or contamination, (C) sewage disposal and/or (D) the disposal of solid waste, such qualifying purposes being discussed in more detail in (b) below;
(iii) the use of the Exempt Facilities for a purpose other than the qualifying purpose indicated in subsection (ii) above could impair (a) such exclusion from gross income of the interest on such bonds, possibly with retroactive affect, unless appropriate remedial action were taken (which could include prompt defeasance and /or redemption of such bonds) and/or (b) the deductibility of DLC's payment of interest based on the restrictions in Section 150(b) of the Code; and
(iv) any breach by Specified FE Subsidiaries of their obligations under this Article could result in the incurrence by DLC of additional costs and expenses, including without limitation, increased interest costs, loss of the interest deduction for tax purposes and transaction costs relating to any refinancing redemption and/or defeasance of all or part of the Revenue Bonds, and Specified FE Subsidiaries will be liable to DLC for such additional costs and expenses.
(i) Specified FE Subsidiaries shall not use, or permit the use of, the Exempt Facilities for any purpose other than:(A) abating or controlling atmospheric or water pollution or contamination by removing, altering, disposing of or storing pollutants, contaminants, waste or heat, all as contemplated in U.S. Treasury Regulations Section 1.103-8(g); (B) the collection, storage, treatment, utilization, processing or final disposal of solid waste, all as contemplated in U.S. Treasury Regulations Section 1.103-8(f); or (C) the collection, storage, treatment, utilization, processing or final disposal of sewage, all as contemplated in U.S. Treasury Regulations Section 1.103-8(f); unless Specified FE Su...
TAX-EXEMPT FINANCING. (a) Seller represents that:
(i) The Exempt Facilities have been financed, and refinanced, in whole or in part, with the proceeds of the issuance and sale by various governmental authorities of industrial development revenue bonds or private activity bonds the interest on which, with certain exceptions, is excluded from gross income for purposes of Federal income taxation (such bonds, as currently outstanding, the "Revenue Bonds"); and Seller is the economic obligor in respect of such Revenue Bonds;
(ii) The Revenue Bonds are described in Schedule 6.14(a);
(iii) The basis for the exclusion of interest on the Revenue Bonds from gross income for Federal income tax purposes is the use of the Exempt Facilities for "the local furnishing of electric energy or gas" under Sections 142(a)(8) and 142(f) of the Code or, if applicable, Section 103(b)(4)(E) of the Internal Revenue Code of 1954, as amended (the "1954 Code"), and in either case the applicable Treasury Regulations (the "Regulations") thereunder;
(iv) The use of the Exempt Facilities for a purpose other than a qualifying purpose indicated in subsection (iii) above could impair (A) such exclusion from gross income of the interest on the Revenue Bonds, possibly with retroactive effect, unless appropriate remedial action were taken (which could include prompt defeasance or redemption of the Revenue Bonds) and/or (B) the deductibility of payments by Seller or Buyer of interest based on the restrictions in Section 150(b) of the Code;
(v) After August 20, 1996, at least the following bonds exempt from tax under Section 103 of the Code and in whole or in part described in Section 142(a)(8) of the Code have been issued with respect to facilities of Seller for the "local furnishing of electric energy or gas": The Industrial Development Authority of the County of Navajo, Industrial Development Revenue Bonds (Citizens Utilities Company Project) 1997 Series B ($12,380,000), and The Industrial Development Authority of the County of Yavapai, Industrial Development Revenue Bonds (Citizens Utilities Company Project) 1998 Series ($20,000,000); and
(vi) Any breach by Buyer of its obligations under this Section 6.14 could result in the incurrence by Seller of additional costs and expenses with respect to the Revenue Bonds, including, without limitation, increased interest costs, loss of the interest deduction for tax purposes and transaction costs relating to any refinancing, redemption and/or defeasance of all or part of the...
TAX-EXEMPT FINANCING. 65 6.18 Removal at Shippingport Site Buildings.................. 67 6.19
TAX-EXEMPT FINANCING. 77 ARTICLE IX CONDITIONS 9.1 Conditions to Obligations of the Parties........... 79 9.2 Conditions to Obligations of DLC................... 80 9.3 Conditions to Obligations of the FE Subsidiaries... 82
TAX-EXEMPT FINANCING. Since October 31, 1997, no tax-exempt bonds have been issued or reissued of which it is a beneficiary.
TAX-EXEMPT FINANCING. In the event Hospital seeks additional or replacement tax exempt financing, Manager agrees to amend this Agreement as may be necessary in order for Hospital to obtain or maintain such financing, or to secure the legal opinions which may be required to secure or maintain such financing. Immediately upon request by Hospital, Manager shall execute any and all such amendments presented by Hospital and shall return promptly said fully executed original amendments to Hospital. If Manager fails to comply with this provision, Hospital may terminate this Agreement upon ten (10) days written notice to Manager.
TAX-EXEMPT FINANCING. The Parties acknowledge that the City has obtained tax-exempt lease financing to pay a portion of the cost of constructing the Police Station, and the Parties agree not to take any action which would jeopardize the tax-exempt status of such financing. In particular, the Parties agree that neither the City nor the County shall allow other jurisdictions or non-governmental users to use or occupy the EMS Station or Police Station during the Term under any lease, license, or use agreement; provided, however, that this shall not prevent the use of the facilities for training classes, including classes containing students or staff from other jurisdictions, or for City court proceedings.
TAX-EXEMPT FINANCING. The Landlord represents that the Leased Premises is not funded by or through tax exempt financing.
TAX-EXEMPT FINANCING. Perhaps the most attractive feature of leasing and lease/purchasing for school districts is the fact that the lessor can, under certain conditions, claim the interest income as exempt from federal or state income taxes. This permits the lessor to extend financing to a school district at a lower interest rate than charged to nonexempt borrowers. While this situation is changing, districts may obtain tax-exempt financing on lease/purchases at substantially lower rates, but may pay higher interest to lessors who are unable to offer exempt financing. Some major vendors (i.e., IBM, Xerox, etc.) do sufficient public agency business to devote the time and expertise to develop a tax-exempt financing program. Major banks have also made tax-exempt financing available, as have some leasing companies that specialize in arranging leases to tax-exempt customers such as states, counties, schools, etc. It can be advantageous, therefore, to attempt to find a source of tax-exempt financing for major purchases, including those which might normally be paid for in cash. Districts may be able to invest any surplus funds at prevailing interest rates which offer higher rates of return than the interest rates they will pay for tax-exempt financing. Exhibit 6A (at the end of this chapter) illustrates a comparison of various ways in which a major equipment purchase might be acquired by a district.
