Tax Exempt Status of Bonds; Arbitrage. It is the intention of the Borrowers and the Issuer that interest on the Bonds shall be and remain excluded from gross income of the owners of the Bonds under federal tax law, and to that end the covenants and agreements of the Issuer and the Borrowers in this section are for the benefit of each and every Owner of a Bond. The Borrowers and the Issuer covenant and agree that they have not taken or permitted to be taken and will not take or permit to be taken any action that will cause the interest on the Bonds to become included in gross income for federal tax purposes pursuant to the Code or to become “arbitrage bonds” within the meaning of Section 148 of the Code; provided that none of the covenants and agreements herein contained shall require either the Borrowers 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; and provided further, that each party’s responsibility under this paragraph shall be limited to actions within its control. The Borrowers agree to pay, in accordance with Section 5.1(c) hereof, the costs of the calculation of the Rebate Amount and the Rebate Amount, if any, owing to the United States of America on the Bonds. The Trustee shall deposit and disburse Rebate Amounts so received in accordance with Section 503 of the Indenture. The Borrowers further covenant that they will not take any action, fail to take any action or make any use of the Project or the proceeds of the Bonds that would cause the interest on any of the Bonds to be or become includable in the gross income of such Bondowners for federal income tax purposes, other than substantial users. Without limiting the generality of the foregoing, the Borrowers and the Issuer covenant and agree that they will take such action or actions (including, without limitation, consenting and agreeing to amendments to the Indenture, Regulatory Agreement, Tax Certificate or this Loan Agreement, as may be necessary in the opinion of Bond Counsel), so that the Borrowers, all subsequent owners of the Project and the Project comply fully and continuously with Sections 142(d), 145 and 148 of the Code, as applicable, and with all applicable legislative enactments or applicable final decisions of courts of competent jurisdict...
Tax Exempt Status of Bonds; Arbitrage. It is the intention of the Authority and the City that interest on the Bonds shall be and remain excluded from gross income of the owners of the Bonds under federal tax law.
Tax Exempt Status of Bonds; Arbitrage. It is the intention of the County and the City that interest on the Bonds shall be and remain excluded from gross income of the Owners of the Bonds, and to that end the covenants and agreements of the County and the City in this section are for the benefit of each and every Bond owner. The County and the City covenant and agree that they have not taken or permitted to be taken and will not take or permit to be taken any action that will cause the interest on the Bonds to become included in gross income for federal tax purposes pursuant to the Code or to become “arbitrage bonds” within the meaning of Section 148 of the Code. The City agrees to pay its proportionate share of the costs of the calculation of the Rebate Amount and the Rebate Amount, if any, owing to the United States on the Bonds. The City’s proportionate share of these costs shall be equal to the cost of calcula tion and Rebate Amount times the ratio of the face amount of the City Obligation to the aggregate initial principal amount of the Bonds. The City further covenants that it will not take any action, fail to take any action or make any use of the Project financed by the Bonds or the proceeds of the Bonds which would cause the Bonds to be or become private activity bonds under the Code.
