Laserfiche WebLink
(ii) At least 95 percent (90 percent for qualified student loans <br /> under section 144(b)(1)(A))of the cost of the purpose investments acquired under <br /> the program represents one or more loans to: (i) a substantial number of persons <br /> representing the general public,(ii)States or political subdivisions,(iii)501(c)(3) <br /> organizations,(iv)persons who provide housing and related facilities,or(iv)any <br /> combination of the foregoing; <br /> (iii) At least 95 percent of the receipts from the purpose <br /> investments are used to pay principal,interest,or redemption prices on issues that <br /> financed the program,to pay or reimburse administrative costs of those issues or <br /> of the program,to pay or reimburse anticipated future losses directly related to the <br /> program,to finance additional purpose investments for the same general purposes <br /> of the program, or to redeem and retire governmental obligations at the next <br /> earliest possible date of redemption; <br /> (iv) The program documents prohibit any obligor on a purpose <br /> investment financed by the program or any related party to that obligor from <br /> purchasing bonds of an issue that finance the program in an amount related to the <br /> amount of the purpose investment acquired from that obligor; and <br /> (v) The City has not waived the right to treat the investment as <br /> a program investment. <br /> (c) Purpose Investment Receipts; Offsets and Exclusions. <br /> (i) Scheduled Monthly Receipts from the Purpose Investments. <br /> Regularly scheduled Loan Repayments will be paid in amounts (with credit for the <br /> application of investment income from the Bond Trust Estate) that will equal the <br /> scheduled semi-annual interest payments due on the Bonds and the scheduled annual <br /> principal payments due upon maturity or by mandatory scheduled redemption of such <br /> Bonds.Until such Loan Repayments or investment income is applied to the payment <br /> of Bond interest or principal,the Borrower will receive the benefit of such payments <br /> and income, and accordingly, under Treas. Reg. §1.148-5(b), all Loan Repayments <br /> are deemed made on the dates and in the amounts that scheduled principal of and <br /> interest on the applicable Bonds are paid. <br /> (ii) Additional Receipts from the Purpose Investment. No separate <br /> issuer fee is being charged by the City. The Borrower will pay to the City as <br /> reimbursement for certain costs, including legal fees of the City, an amount not <br /> exceeding $15,000 (the "Reimbursed Payments"). The Reimbursed Payments, in <br /> addition to the Borrower's payment of other costs of issuance,will constitute receipts <br /> by the City from the Loan Agreement,and the Reimbursed Payments and other costs <br /> of issuance (the "Qualifying Costs") will be allocable to "costs of issuing, carrying, <br /> or repaying the Bonds" and will be qualified administrative costs under Treas. Reg. <br /> -5- <br />