Investment of any proceeds of the lease in compliance with the arbitrage rules and the 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 section 1.148-5(d)(6)(iii)), in compliance with fee limitations on GIC brokers (see Treasury Regulations section 1.148-5(e)(2)(iii)); provided, however, that to the extent that the safe harbor provisions cannot be met, the City will consult with bond counsel.
B. Fair Market Value Of Investments: Other investments will be purchased only in market transactions.
C. Yield Restriction: Before the purchase of any investment, the City will confirm that such purchase will not violate any rules relating to proceeds that must be invested at a yield not in excess of the yield on the applicable lease.
D. Rebate Calculations: Calculations of rebate liability will be performed by outside consultants at the end of construction or acquisition and at least every fifth 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 execution of the applicable lease; and 2) the final termination or expiration of the lease.
F. Note First Rebate Due Date: The date for the first rebate payment will be identified and entered in the records for the lease at time of execution of the lease. (2019 Compilation)