Temporary Periods/Yield Restriction Clause Samples

Temporary Periods/Yield Restriction. Except as described below, the City will not invest Gross Proceeds at a Yield greater than the Yield on the Lease:

Temporary Periods/Yield Restriction. The Code and the Regulations generally provide that the direct or indirect investment of the Gross Proceeds of the Bonds in Higher Yielding Investments causes the Bonds to be arbitrage bonds and, thus, the interest thereon to be taxable. However, generally, certain Gross Proceeds may, during certain temporary periods, as part of a reasonably required reserve or replacement fund or as part of the Minor Portion, be invested at an unrestricted Yield without causing the Bonds to be taxable arbitrage bonds. In any event, Higher Yielding Investments generally do not include Tax-Exempt Obligations (except for those specified private activity bonds that are included in Investment Property), although the earnings thereon may be subject to Yield restriction unless reinvested in Tax-Exempt Obligations (except for those specified private activity bonds that are included in Investment Property).

Temporary Periods/Yield Restriction. Except as described below, the City will not invest Gross Proceeds at a Yield greater than the Yield on the Certificates: (a) Project Fund, Capitalized Interest, and Costs of Issuance. Certificate proceeds deposited in the Project Fund, including funds used to pay the costs of executing and delivering the Certificates, and Certificate proceeds deposited in the Lease Revenue Fund as capitalized interest and investment earnings on those proceeds may be invested without Yield restriction for up to three years following the Issue Date. If any unspent proceeds remain in the Project Fund after three years, those amounts may continue to be invested without Yield restriction so long as the City pays to the IRS all Yield reduction payments in accordance with Regulations § 1.148-5(c). These payments are required whether or not the Certificates are exempt from the arbitrage rebate requirements of Code § 148.

Temporary Periods/Yield Restriction. Except as described below, the City will not invest Gross Proceeds at a Yield greater than the Yield on the Bonds: (a) Proceeds Allocable to Current Refunding. Bond proceeds deposited with the paying agent for the Refunded Obligations or otherwise allocable to a current refunding of the Refunded Obligations (see Section 3.7) may be invested without Yield restriction for up to 90 days after the Issue Date.

Temporary Periods/Yield Restriction. Except as described below, the Issuer will not invest Gross Proceeds at a Yield greater than the Yield on the Bonds: (a) Project Fund, Capitalized Interest Fund and Cost of Issuance Fund. ▇▇▇▇ proceeds deposited in the Project Fund, Capitalized Interest Fund and Cost of Issuance Fund and investment earnings on those proceeds may be invested without Yield restriction for up to 3 years following the Issue Date. If any unspent proceeds remain in those funds after 3 years, those amounts may continue to be invested without Yield restriction so long as the Issuer pays to the IRS all Yield reduction payments in accordance with Regulations § 1.148-5(c). These payments are required whether or not the Bonds are exempt from the arbitrage rebate requirements of Code § 148.

Temporary Periods/Yield Restriction. The proceeds of the Lease deposited in the Project Fund and investment earnings thereon may be invested without yield restriction for three years after the date of the Lease. If any unspent proceeds remain in the Project Fund after three years, such amounts may continue to be invested without yield restriction so long as the Lessee computes and pays to the IRS all yield reduction payments in accordance with Treas. Reg §1.148-5(c). These payments are required whether or not the Lease is exempt from the arbitrage rebate requirements of Code §148.

Temporary Periods/Yield Restriction. Except as described below, the Issuer will not invest Gross Proceeds at a Yield greater than the Yield on the Certificates:

Temporary Periods/Yield Restriction. Except as described below, the City will not invest Gross Proceeds at a Yield greater than the Yield on the Certificates: (a) Series 2018 Account of the Project Fund. Certificate proceeds deposited in the Series 2018 Account of the Project Fund and investment earnings on those proceeds may be invested without Yield restriction for up to three years following the Issue Date. If any unspent proceeds remain in the Series 2018 Account of the Project Fund after three years, those amounts may continue to be invested without Yield restriction so long as the City pays to the IRS all Yield reduction payments in accordance with Regulations § 1.148-5(c). These payments are required whether or not the Certificates are exempt from the arbitrage rebate and yield reduction amount requirements of Code § 148.

Temporary Periods/Yield Restriction. Proceeds of the Lease deposited in the Escrow Fund and investment earnings thereon may be invested without yield restriction for not more than three years after the Issue Date, except as otherwise provided in this Section. If any unspent proceeds remain in the Escrow Fund after three years, such amounts may continue to be invested without yield restriction, except as otherwise provided in this Section, so long as all yield reduction payments are computed and paid to the IRS in accordance with Treas. Reg. § 1.148-5(c). Any amounts in the Escrow Fund after completion of the acquisition of the Equipment in excess of the sum of the Lease Payments coming due within 12 months of such completion plus $100,000 and any amounts not invested as described above shall be invested at a yield not greater than the yield on the Lease.