Laserfiche WebLink
375 <br /> <br /> on the Bonds is includable in the gross income of the recipients thereof <br /> for federal income tax purposes, and <br /> (c) the Bonds will be purchased by the purchasers thereof a private <br />sale on the basis that the interest on the Bonds is includable in the <br />gross income of the recipients thereof for federal income tax purposes, <br />the Issuer hereby covenants that, in view of the foregoing, it will not file <br />with the Internal Revenue service an Information Return for Tax-Exempt Bond <br />Issues (Form 8038 G or 8038 GC) and hereby determines that under existing <br />federal law the interest on the Bonds is includable in the gross income of the <br />recipients thereof for federal income tax purposes. <br /> <br /> Inasmuch as, <br /> (a) under existing State law the interest on the Bonds is exempt <br /> from State income taxes and the Bonds are exempt from the State tax on <br /> intangible personal property, and <br /> (b) Chapter 587 of the 1987 Session Laws of the General Assembly <br />confirms the right of local governmental units to issue bonds the <br />interest on which is subject to federal income taxation and provides that <br />any such bonds will maintain their existing exemption from State income <br />taxation, or other State taxation including the tax on intangible <br />personal property, notwithstanding that the interest on such bonds may be <br />subject to federal income taxation, <br />the Issuer hereby reaffirms that under existing State law the interest on the <br />Bonds is exempt from State income taxes and the Bonds are exempt from the <br />State tax on intangible personal property. <br /> <br /> Section 10. Disposition of Bond Proceeds. The proceeds of the Bonds <br />received by the State Treasurer shall be applied by the State Treasurer as <br />follows: <br /> <br /> (a) Any amount received as accrued interest on the Bonds shall be <br />transferred to the Issuer. <br /> (b) The amount of Bond proceeds required to be used with other available <br />funds of the Issuer to pay the principal component of the purchase price of <br />the Refunded Bonds shall be paid to FmHA for application to such purchase. <br /> (c) After the applications specified in (a) and (b) above, the amount of <br />Bond Proceeds available to pay the Related Issuance Expenses shall be applied <br />for such purpose including, without limitation, any reimbursement to the <br />Issuer of the 5% Good Faith deposit as may be determined in the Award Certifi- <br />cate. <br /> (d) The balance remaining, if any, shall be transferred to the Issuer. <br /> <br /> The directions to the State Treasurer set forth above shall be subject to <br />modification by the State Treasurer, in his discretion, in order to comply <br />with State law or the Bond Purchase Agreement or in order to effect the <br />Issuer's purchase of the Refunded Bonds from FmHA. <br /> <br /> Section 11. Effective Date. This Resolution shall take effect <br />immediately upon its passage. <br /> <br />No. R-1 <br /> <br />United States of America <br />State of North Carolina <br /> ( DISTRICT) <br /> DISTRICT OF <br /> <br /> Exhibit A <br />(Bank Purchaser Bond) <br /> <br />COUNTY) <br /> <br />Refunding Bond <br /> <br />THE INTEREST ON THIS BOND IS <br />INCLUDABLE IN THE GROSS INCOME OF <br />THE RECIPIENT THEREOF FOR FEDERAL <br />INCOME TAX PURPOSES <br /> <br /> The ( District) ( District of County) a <br />body politic and corporate in County, North Carolina (the <br />"Issuer"), is justly indebted and for value received hereby promises to pay to <br /> <br /> <br />