Orange County NC Website
Browse       Search
7 <br />indebtedness under the Promissory Note to be used, directly <br />or indirectly, in a use which is related to the governmental <br />use of the proceeds, to the extent such private -use proceeds <br />exceed the proceeds to be used for the governmental use to <br />which such private -use proceeds relate. <br />(3) Unless the County complies with paragraphs (1) and <br />(2) above, the County will not permit the indebtedness under <br />the Promissory Note to the Tocthatyend,pamongt <br />test of Section 141(b)(2) of <br />other things, the County will not permit the present value <br />of the payments taken into account under paragraph (a)(3) of <br />I.R.S. Notice 87 -69 (including, e.g., payments by a person <br />to be made for any private use of property financed with <br />proceeds of the indebtedness under the Promissory Note to <br />the extent allocable to the payment of debt service on the <br />portion of such proceeds used to finance such property) to <br />exceed 10 percent (5 percent, in the case of combined <br />unrelated private -use proceeds and disproportionate related <br />private -use proceeds as described in paragraph (2) above) of <br />the present value of the debt service (as defined in <br />paragraph (a)(2)(ii) of I.R.S. Notice 87 -69) over the term <br />of the Promissory Note. <br />(4) The County will monitor or cause to be monitored <br />the yield on the investment of any moneys pledged to the <br />payment of the obligations under the Promissory Note and any <br />other funds replaced directly or indirectly by the proceeds <br />of the indebtedness under the Promissory Note, and will <br />restrict or -.ause to be restricted the yield on such <br />investments the extent required by the Code or the <br />Regulations. <br />(5) The County will take or cause to be taken all <br />necessary steps to comply with the requirement that <br />"rebatable arbitrage," if any, from the investment of the <br />gross proceeds relating to the Promissory Note (including <br />such moneys, if any, as are described in the preceding <br />paragraph) be paid to the United States. Specifically, the <br />County will (or will cause another to) (i) maintain records <br />regarding the investment of the gross proceeds relating to <br />the Promissory Note as may be required to calculate such <br />"rebatable arbitrage" separately from records of amounts on <br />deposit in the funds and accounts of the County which are <br />allocable to other obligations of the County or moneys which <br />do not represent gross proceeds of any obligations of the <br />County, (ii) calculate, periodically to the extent required <br />to comply with applicable Regulations, the amount of <br />"rebatable arbitrage, if any, earned from the investment of <br />the gross proceeds relating to the Promissory Note, and <br />(iii) pay, not less often than once every five years and not <br />later than 60 days after the day on which the last of the <br />principal under the Promissory Note is paid at maturity or <br />5 <br />