Common use of Eighteen Month Exception Clause in Contracts

Eighteen Month Exception. The Lease is treated as meeting the Rebate Requirement under the eighteen-month exception if the following requirements are satisfied: (i) Gross Proceeds of the Lease are allocated to Expenditures for the purposes for which the Lease is executed and delivered in accordance with the following schedule measured from the date hereof and none of the issue is treated as complying with the two-year exception: (A) at least 15 percent within six months; (B) at least 60 percent within 12 months; and (C) 100 percent within 18 months, with an exception for reasonable retainage, not in excess of five percent of the Net Sale Proceeds of the obligations which must be allocated to Expenditures within 30 months of the date hereof; (ii) for purposes of determining compliance with the six-month and 12-month spending periods, the amount of Investment Proceeds is determined based on the City’s reasonable expectations on the Date of Execution and Delivery of the Lease; and (iii) all of the Gross Proceeds of the Lease (excluding amounts in a bona fide debt service fund, amounts in a reasonably required reserve or replacement fund, amounts that, as of the Date of Execution and Delivery of the Lease, are not reasonably expected to be Gross Proceeds but that become Gross Proceeds after the eighteen-month spending period, amounts representing Sale Proceeds or Investment Proceeds derived from Payments under any Purpose Investment financed with Proceeds of the Lease, and amounts representing repayments of grants financed by the Lease) must qualify for the general three-year temporary period for new money projects described in Section 1.148-2(e)(2) of the Regulations. Any failure to satisfy the final spending requirement of the eighteen-month exception may be disregarded if the City exercises due diligence to complete the project for which the Lease is executed and delivered and the amount of the failure does not exceed the lesser of three percent of the Issue Price of the Lease or $250,000. Note that the eighteen-month exception is not available for the portion of the Gross Proceeds of the Lease that is used directly or indirect to pay debt service on another issue of tax-exempt obligations (i.e., the eighteen-month exception is not available for any refunding portions of the Lease).

Eighteen Month Exception. The Lease is Bonds are treated as meeting the Rebate Requirement under the eighteen-month exception if the following requirements are satisfied: : (i) Gross Proceeds of the Lease are allocated to Expenditures for the purposes for which the Lease is executed and delivered Bonds are issued in accordance with the following schedule measured from the date hereof Date of Issuance of the Bonds and none of the issue is treated as complying with the two-year exception: : (A) at least 15 percent within six months; (B) at least 60 percent within 12 months; and (C) 100 percent within 18 months, with an exception for reasonable retainage, not in excess of five percent of the Net Sale Proceeds of the obligations which must be allocated to Expenditures within 30 months of the date hereofDate of Issuance of the Bonds; (ii) for purposes of determining compliance with the six-month and 12-month spending periods, the amount of Investment Proceeds is determined based on the CityIssuer’s and the Borrower’s reasonable expectations on the Date of Execution and Delivery Issuance of the LeaseBonds; and (iii) all of the Gross Proceeds of the Lease (excluding amounts in a bona fide debt service fund, amounts in a reasonably required reserve or replacement fund, amounts that, as of the Date of Execution and Delivery Issuance of the LeaseBonds, are not reasonably expected to be Gross Proceeds but that become Gross Proceeds after the eighteen-month spending period, amounts representing Sale Proceeds or Investment Proceeds derived from Payments under any Purpose Investment financed with Proceeds of the LeaseProceeds, and amounts representing repayments of grants financed by the LeaseBonds) must qualify for the general three-year temporary period for new money projects described in Section 1.148-2(e)(2) of the Regulations. Any failure to satisfy the final spending requirement of the eighteen-month exception may be disregarded if the City Borrower exercises due diligence to complete the project for which the Lease is executed and delivered Bonds are issued and the amount of the failure does not exceed the lesser of three percent of the Issue Price of the Lease Bonds or $250,000. Note that the eighteen-month exception is not available for the portion of the Gross Proceeds of the Lease that is used directly or indirect indirectly to pay debt service on another issue of tax-exempt obligations (i.e., the eighteen-month exception is not available for any refunding portions of the LeaseBonds).