Investment of bond proceeds in compliance with the arbitrage bond rules and rebate of arbitrage will be supervised by the Oversight Officer.
A. Guaranteed Investment Contracts: Guaranteed investment contracts (GIC) will be purchased only using the three (3) bid "safe harbor" (see Treasury Regulations section1.148-5(d)(6)(iii)), in compliance with fee limitations on GIC brokers (see Treasury Regulations section1.148-5(e)(2)(iii)); provided, however, that to the extent that the safe harbor provisions cannot be met, the issuer will consult with bond counsel.
B. Fair Market Value Of Investments: Other investments will be purchased only in market transactions.
C. Yield Restriction: Prior to the purchase of any investment, the issuer will confirm that such purchase will not violate any rules relating to proceeds which must be invested at a yield not in excess of the yield on the applicable issue of bonds.
D. Rebate Calculations: Calculations of rebate liability will be performed by outside consultants at the end of construction and at least every fifth bond year.
E. Rebate Payments: Rebate payments will be made with Form 8038-T no later than sixty (60) days after: 1) each fifth anniversary of the date of issuance of the applicable bonds; and 2) the final retirement of the issue. Compliance with rebate requirements will be reported to the bond trustee, if applicable.
F. Note First Rebate Due Date: The date for the first rebate payment will be identified and entered in the records for the issue at time of issuance of the bonds. (2019 Compilation)