Complete Agenda Package - Town of Hilton Head Island

(i) comply with the applicable provisions of Sections 103 and 141 through 150 of
the Code and any regulations promulgated thereunder so long as the Bonds are outstanding;
(ii) establish such funds, make such calculations and pay such amounts, in the
manner and at the times required in order to comply with the requirements of the Code relating to
required rebates of certain amounts to the United States; and
Code.
(iii)
make such reports of such information at the time and places required by the
SECTION 19. Written Procedures Related to Tax-Exempt Debt. The Town Council hereby
approves the Written Procedures Related to Tax-Exempt Debt attached hereto as Exhibit D.
SECTION 20. Declaration of Intent to Reimburse Certain Expenditures. This Ordinance shall
constitute the Town’s declaration of official intent pursuant to Regulation §1.150-2 of the Code to reimburse
the Town from a portion of the proceeds of the Bonds for expenditures it anticipates incurring (the
“Expenditures”) with respect to the Referendum Projects set forth in Section 2(f) hereof prior to the issuance
of the Bond. The Expenditures which are reimbursed are limited to Expenditures which are: (a) properly
chargeable to a capital account (or would be so chargeable with a proper election or with the application of
the definition of placed in service under Regulation §1.150-2 of the IRC) under general federal income tax
principals; or (2) certain de minimis or preliminary Expenditures satisfying the requirements of Regulation
§1.150-2(f) of the IRC. The source of funds for the Expenditures with respect to these projects will be the
Town’s reserve funds. To be eligible for reimbursement of the Expenditures, the reimbursement allocation
must be made not later than 18 months after the later of (a) the date on which the Expenditures were paid; or
(b) the date such projects were placed in service, but in no event more than three (3) years after the original
Expenditures.
SECTION 21. Written Procedures Related to Tax-Exempt Debt. The Board hereby approves the
Written Procedures Related to Tax-Exempt Debt attached hereto as Exhibit D.
SECTION 22. Miscellaneous. The Council hereby authorizes the Mayor and Clerk of the Town,
the Town Manager, the Director of Finance and any lawfully authorized designee to execute such
documents and instruments as may be necessary to effect the issuance of the Bonds or make modifications
in any documents including but not limited to the form of the Bond or Notice of Sale, if necessary. The
Council hereby retains the law firm of McNair Law Firm, P.A. as bond counsel and Merchant Capital, LLC,
as financial advisor in connection with the issuance of the Bonds. The Town Manager is authorized to
execute such contracts, documents or engagement letters as may be necessary and appropriate to effectuate
these engagements.
SECTION 23. Severability. If any section, phrase, sentence, or portion of this Ordinance is for
any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be
deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the
remaining portions thereof.
SECTION 24. Codification. This Ordinance shall be forthwith codified in the Code of Town
Ordinances in the manner required by law.
SECTION 25. Effective Date. This Ordinance shall be effective upon its enactment by the
Council of the Town of Hilton Head Island, South Carolina.
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