Title
Resolution Authorizing the Issuance and Establishing Parameters for the Sale of Not To Exceed $5,660,000 General Obligation Refunding Bonds to Refund Build America Bonds.
Body
WHEREAS, the City of West Allis, Milwaukee County, Wisconsin (the "City") heretofore issued its Taxable General Obligation Corporate Purpose Bonds, Series 2010C (Build America Bonds - Direct Payment), dated April 1, 2010 (the "Refunded Obligations") and irrevocably designated such issue to be qualified "Build America Bonds" within the meaning of Subsection 54AA(g) of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations promulgated thereunder by the U.S. Department of Treasury (the "Regulations") so that the City is eligible to claim refundable credits with respect to each interest payment on the Refunded Obligations, payable to the City by the Secretary of the United States Department of the Treasury ("Treasury");
WHEREAS, on March 11, 2013, the City was notified by the Treasury that the credit payment it requested with respect to the April 1, 2013, interest payment on the Refunded Obligations was reduced by 8.7%, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, as evidenced by the letter attached hereto as Exhibit A and incorporated herein by this reference;
WHEREAS, the Refunded Obligations are subject to redemption prior to maturity, in whole or in part, at the option of the City, on any day, at a redemption price equal to 100% of the principal amount redeemed plus accrued interest to the date of redemption, in the event that either (a) Section 54AA or 6431 of the Code is repealed, amended or modified in a manner which results in a reduction or elimination of the City's 35% cash subsidy payment from the Treasury or (b) the Treasury fails to make a cash subsidy payment to which the City is entitled and such failure is not caused by any action or inaction by the City;
WHEREAS, the Comm...
Click here for full text