Page 413 - FortWorthFY22AdoptedBudget
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Date") and that (ii) the Project must proceed with due diligence.

                   B.  Monitor  progress  to  ensure  that  at  least  85%  of  the  proceeds  of  the
                      Obligations  to  be  used  for  the  construction,  renovation  or  acquisition  of  the
                      Project are expended within three years of the Issue Date.

                    C.  Monitor to ensure proceed expenditures from project Obligation issuances
                       comply with one of the following applicable schedules 1,2,3 :

                            a)   Six-Month Expenditure Schedule. All proceeds must be spent
                                 within six months.

                            b)   Eighteen-Month Expenditure Schedule:

                                          i.  By six (6) months following receipt of the proceeds, fifteen
                                             percent (15%) of the proceeds (together with any amounts
                                             received from investments thereof) must have been  spent
                                             on the designated projects.

                                         ii.  By twelve (12) months following receipt of the  proceeds,
                                             sixty  percent  (60%)  of  the  proceeds  (together  with  any
                                             amounts  received  from  investments  thereof)  must  have
                                             been spent on the designated projects.

                                         iii.  By eighteen (18) months following receipt of the proceeds,
                                             one hundred percent (100%) of the proceeds (together with
                                             any  amounts  received  from  investments  thereof)  must
                                             have been spent on the designated projects.

                            c)   Two-Year Expenditure Schedule.  The two-year expenditure schedule
                                 is  available  only for  proceeds  used  to fund  construction projects. A
                                 project  will  qualify  as  a  construction  project  if    at  least  75%  of  the
                                 proceeds  will  actually  be  used  for  actual  construction  (versus
                                 acquisition)  costs.  The  two-year  expenditure  exception  requires
                                 expenditure of the proceeds within the following  schedule:

                                         i.  By  six  (6)  months  following  receipt  of  the  proceeds,  ten
                                            percent (10%) of the proceeds (together with any amounts
                                            received from investments thereof) must have been  spent
                                            on the designated projects.
               1
                 For more information regarding these expenditure schedules, please refer to McCall Parkhurst & Horton, L.L.P.’s Memorandum
               entitled  Arbitrage Rebate Regulations, attached to the Federal Tax Certificates for the Obligations at issue.
               2
                 The spending requirements do not generally apply to amounts held in a reasonably required reserve fund, except
               in certain cases related to the two-year exception period.
               3
                 “Proceeds” as used in this Section VII(b) generally includes investment earnings, but excludes funds held in a bona fide debt
               service fund.





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