Two-Year Exception Sample Clauses

Two-Year Exception. Notwithstanding the fact that all of the Gross Proceeds of the Local School Bond are spent within twenty-four (24) months of the date of issue and no other Gross Proceeds of the Local School Bond are anticipated for the remainder of the term of the issue, if Gross Proceeds of the Local School Bond become available after the end of the initial twenty-four-month period, the Locality Rebate Requirement shall be computed with respect to such Gross Proceeds in accordance with the procedure described above.

Two-Year Exception. Gross Proceeds (or of a portion of the Bonds) are treated as meeting the Rebate Requirement under the two-year exception if the following requirements are met: (i) the issue of Bonds (or portion thereof) is a qualified “construction issue” because 75 percent of “available construction proceeds” of the issue of Bonds (or portion thereof) is expected by the Issuer and the Borrower to be expended on construction expenditures; and (ii) such Gross Proceeds are allocated to Expenditures for the purposes of such issue Bonds (or portion thereof) in accordance with the following two-year expenditure schedule measured from the Date of Issuance of the Bonds: (A) at least 10 percent within six months; (B) at least 45 percent within one year; (C) at least 75 percent within 18 months; and (D) 100 percent within two years, with an exception for reasonable retainage expended within three years. Any failure to satisfy the final spending requirement of the two-year exception may be disregarded if the Borrower exercises due diligence to complete the project for which the Bonds are issued and the amount of the failure does not exceed the lesser of three percent of the Issue Price of such portion of the Bonds or $250,000. Note that the two-year exception is not available for the portion of the Gross Proceeds that is used directly or indirectly to pay debt service on another issue of tax-exempt obligations (i.e., the two-year exception is not available for any refunding portions of the Bonds). The two-year exception is further described in Section 1.148-7(e) of the Regulations. The Issuer and the Borrower should seek the advice of Bond Counsel or the Rebate Analyst in determining whether the requirements of the two-year exception have been satisfied.

Two-Year Exception. Gross Proceeds of the Lease are treated as meeting the Rebate Requirement under the two-year exception if the following requirements are met: (i) the Lease issue is a qualified “construction issue” because 75 percent of “available construction proceeds” of the Lease issue is expected by the City to be expended on construction expenditures; and (ii) such Gross Proceeds are allocated to Expenditures for the purposes of such Lease issue in accordance with the following two-year expenditure schedule measured from the Date of Execution and Delivery of the Lease: (A) at least 10 percent within six months; (B) at least 45 percent within one year; (C) at least 75 percent within 18 months; and (D) 100 percent within two years, with an exception for reasonable retainage expended within three years. Any failure to satisfy the final spending requirement of the two-year exception may be disregarded if the City exercises due diligence to complete the project for which the Lease is executed and delivered and the amount of the failure does not exceed the lesser of three percent of the Issue Price of the Lease or $250,000. Note that the two-year exception is not available for the portion of the Gross Proceeds of the Lease that is used directly or indirect to pay debt service on another issue of tax-exempt obligations (i.e., the two-year exception is not available for any refunding portions of the Lease). The two-year exception is further described in Section 1.148-7(e) of the Regulations. The City should seek the advice of Bond Counsel or the Rebate Analyst in determining whether the requirements of the two-year exception have been satisfied.

Two-Year Exception. A Construction Issue is treated as meeting the Rebate Requirement for Available Construction Proceeds under this exception if those proceeds are allocated to expenditures for governmental purposes of the Series 2014 Bonds in accordance with the following schedule (the “two-year expenditure schedule”), measured from the issue date: (1) at least 10 percent within six months; (2) at least 45 percent within one year; (3) at least 75 percent within 18 months; and (4) 100 percent within two years. The Series 2014 Bonds do not fail to satisfy the spending requirement for the fourth spending period above as a result of unspent amounts for Reasonable Retainage if those amounts are allocated to expenditures within three years of the issue date.