R2002-154 AUTHORIZING THE EXECUTION OF A TAX EXEMPTION CERTIFICATION AND AGREEMENT

Home Browse Search

JUL-25-02 THU 16�08 IEPA WATER FAX N0, 2177851225 P, 04 Section S. Reimbursement Nonc of the proceeds of this Loaa will bc us�d to reimburse expendiriues made by thc Rccipient prior to the eazlier of Accember 17, 2001 or, 60 days before the date of execution of the Loan Agreemcnt cxccpt for cnginccring, dcsiga, and azchitectural expenditures incurred prior to the construction of the Projcc� Sec�ion G. Heclge�. Nei�icr thc Recipient nor any member of the same Controlled Group as the Rtcipicnt has cntered into or expects to enter into any hedge (e.g., an iaterest ratc swap, intcrest ratc cap, futures cont�-act, forward r.�ntract or an option) with respect to thc IEPA Lvans. Section 7. 1'nrernal Revenue Servicp Audits. The I�ternal Revenue Service has not contactcd the Recipieut rcgau�cling any obligations issued by or on behalf of the Recipient in connection with its wastcwater or drin�king watcr system and no such obIigations src cunrendy under examination by the Internal Revenue Service. Soction 8. Funds and Accounts. The Rcoipicnt ac�mowledgcs that it is rcquirCd to �stablish and maintain a Repayment �d. ?o the extent that the Repaymcnt Fund has been cstablished for the proper matching of revenues and debt scrvice r�vvithin cach ycar, and the R�payment F�nd is depleted at least once each year to a ba,tance that is no grcater than 1/12 the az�nual debt service on the Recipient's IEPA Loans and any othcr debt iast:uments paid from the Repayment Fund, then the Rcpayment k'u�d constitutcs a "bona fide debt service fuad"within the meaning of the United Stat�s tax rcgulafiiona. As such, the Repayment F1�nd will not be subject to invcstment restrictians or rebate relating to bonds funding any of t11e IEPA T.oans. Thc RecipienYs operations and maintenance accounts, depreciadon accounts, rcnewaI accounts or surplus accotutts, exccpt t� th� extent thac such aceounts are exp�ted to be nsed to pay principal of or inter�st on the IEPA I,oans, gcnerally are aat subject to investmcnt restrictions and requirements hcrcuader. If the Recipient maincains a dcbt service resezvo fund{or similaz account)securing any of the�PA Loans, sueh debt servico rescrve fund may be subjcet to certain investment z�estrictioas and rebate requirements dcscribcd in Appendix A. Tf the Recipient maintains any othcr funds or accounts (or any other farmal or informal collection of money or investments) conatituting Restr�cted Funds, those other funds or aeeounts may be subjcct to investment restrictions and , rebate as described in Appendix A. Such restrictions may atso a�ly if the Rccipicnt has entered into (at any time) any coveuat�ts to maintain batanees in any funds or accounts for t�e bcnefit of , holders of its debt or guarantors thereo.f. The Recipient aclrnvwledges that the Agency has r . p egared di�'erent vcrsiona of A cndix A pp thc apphcab�l�ty of wtuch is dcpendent on the size and complexity of the Recipient's finances. �'hc Rccipient has indicated the version incarporated ' hexei.a. -2 - co C,�nr�Nv a*�Cu7�R,APxII,.20U t (VERNM.01)