(A) The city will comply with Internal Revenue Code section 148, Arbitrage Rebate regulations by monitoring bond proceed expenditures against deposits and investment earnings on each of their respective bond funds. The city will make the necessary rebate filings and, if necessary, rebate payments to the Internal Revenue Service and will continue to take all actions required and recommended by bond counsel and or the municipal advisor to assure that any bonds issued as tax-exempt securities shall remain as such throughout the life of the issue.
(B) The city will follow a policy of full disclosure on every financial report and preliminary and final official statements and will adhere to SEC Rule 10b-5 which establishes a two-pronged standard for disclosure: what the disclosure statement says must be accurate and it must not suffer from any "material omission." This includes, but is not limited to, providing accurate financial information, especially audited financial statements, and disclosing information about pending or threatened litigation that would be considered material to the bond issue or the city. SEC Rule 10b-5 provides that it is unlawful for any person, directly or indirectly, in connection with the purchase or sale of any security "to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading."
(Ord. 31-16, passed 9-12-16; Am. Ord. 37-19, passed 8-26-19)