Resolution 3653 - Designating Lease as Qualified Tax-Exempt Obligationd 4', Il
RESOLUTION NO. 3653
RESOLUTION DESIGNATJING LEASE AS QUALIFIED TAX-EXEMPT
OBLIGATION TO PERMIT DEDUCTIBILITY OF CERTAIN
INTEREST COSTS BY BANKS OR FINANCIAL INSTITUTIONS
WHEREAS, the governing body of the City of Kalispell of
Kalispell, Montana ( the "Lessee") , a municipal corporation with
the State of _Montana _ ( the "State") has heretofore
authorized the execution, delivery and performance of a
Lease/Purchase Agreement between the Lessee and
Dougherty Dawkins Lease ( the "Lessor" } ; and
Group, Inc.
WHEREAS, there is pending in the United States Senate a
Bill designated as H.R. 3838 as approved by the United States
House of Representatives on December 17, 1985 (the "Pending Tax
Bill"); and
WHEREAS, the Pending Tax Bill provides that it shall have
retroactive effect for all municipal obligations, including the
above -mentioned Lease, from and after December 31, 1985; and
WHEREAS, one of the provisions of the Pending Tax Bill
permit the designation of certain municipal obligations, including
the Lease, as "qualified tax-exempt obligations" which will have
the effect of lowering the effective cost of interest to the
Lessee;
NOW, THEREFORE, BE IT RESOLVED, by this body that:
(1) Representations. The Lessee was a political
subdivision in existence on October 23, 1985, the reasonably
anticipated amount of "qualified tax-exempt obligations" within
the meaning of the Pending Tax Bill to be issued by the Lessee
during the present calendar year does not exceed $10,000,000 and
the obligation of Lessee pursuant to the Lease constitutes either
an "essential function bond" or a "qualified 501(c)(3) bond" as
defined in the Pending Tax Bill. ,
(2) The Lease is hereby designated as a "qualified
tax-exempt obligation" within the meaning of the Pending Tax Bill
in order to induce banks and other financial institutions of this
State to purchase all or any portion of the obligation of the
i.a-_qAP under the Lease.
(3) Covenant. The Lessee hereby covenants and agrees
with the Lessee and any successor party owning all or a portion of
the right to receive Rental Payments under the Lease that the
Lessee will not designate more than $10,000,000 of obligations as
"qualified tax-exempt obligations" within the meaning of the
Pending Tax Bill for this calendar year and the total amount of
obligations of the Lessee under the Lease and under any other
financing arrangement with a common purpose shall not be
designated as a "qualified tax-exempt obligation" within the
Pending Tax Bill or, if such designation is made, the total amount
so designated for a common purpose shall not exceed $3,000,000.
(4) Effective Date. This Resolution shall take effect
immediately.
CITY OF KALISPELL
h � L
(Mayor)
Date: Mav 19 , 19 86
Attest: f�
r
STATE OF Montana )
) ss.
COUNTY OF' Flathead
I, the undersigned Mayor _ of the City of
Kalispell , DO HEREBY CERTIFY that:
I have compared the annexed extract of the minutes of the
meeting of the,_ City Council Of the': City of Kalispell ,
including the resolution contained therein, held on
May 19 _r 1986 with the original thereof on file in my
office, and that the same is a true and correct copy of the
proceedings of the Council Meeting and of such resolution set
forth therein and of the whole of the original thereof insofar as
the same relates to the subject matters therein referred to.
I FURTHER CERTIFY that (i) all members of the
City Council had due notice of such meeting, (ii) such
meeting was open to the general public and notice of the time and
place of such meeting was duly given, (iii) such meeting was in
all respects duly held, (iv) there was a quorum present throughout
and (v) such resolution has not been altered; amended or repealed
but is in full force and effect on the date hereof.
IN WITLESS WHEREOF, I have hereunto set my hand on
i~ May, 19r 1986.
I, the undersigned, City Clerk of the City of Kalispell, certify that the
foregoing is a true copy of the Resolution passed by the City Council of the
City of Kalispell, Montana, at a regular meeting held
City Clerk of the City of Kalispell, Montana
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