“Opinion of Special Tax Counsel” means the written opinion of Special Tax Counsel
addressed to the Lender to the effect that the proposed action or the failure to act will not
adversely affect the exclusion of the interest portion of rental payments under the Lease
Agreement from gross income for federal income tax purposes or an opinion describing
additions, modifications or additional proce dures required to preserve the interest portion of
rental payments under the Lease Agreement from gross income for federal income tax
purposes.
“Post-Issuance Tax Requirements” means those requirements related to the use of
Lease Proceeds, the use of the Financed Assets and Benefitted Facilities, andthe investment of
Lease Proceeds after the Closing Date.
“Project” meansall of the property acquired, installed, constructed, and equipped by
the District using Lease Proceeds [**and other money contributed by the Issuer or the
District**].
“Qualified Use Agreement” means any of the following:
(1) A lease or other short-term use by members of the general public who use
the Project on a short-term basis in the ordinary course of the Issuer’s or the District’s
governmental purposes.
(2) Agreements with Qualified Users or Non-Qualified Users to use allora
portion of the Project for a period up to 200 days in length pursuant to an arrangement
whereby (a) the use of the Project under the same or similar arrangements is
predominantly by natural persons who are not engaged in a trade or business and (b) the
com pensation for the use is determined based on generally applicable, fair market value
rates that are in effect at the time the agreement is entered into or renewed. Any Qualified
User or Non-Qualified User using all or any portion of the Project under this type of
arrangement may have a right of first refusal to renew the agreement atrates generally in
effect at the time of the renewal.
(3) Agreements with Qualified Users or Non-Qualified Users to use all ora
portion of the Project for a period up to 100 days in length pursuant to arrangements
whereby (a) the use of the property by the person would be general public use but for the
fact that generally applicable and uniformly applied rates are not reasonably available to
natural persons not engaged in a trade or business, (b) the compensation for the use
under the arrangement is de termined based on applicable, fair market value rates that are
in effect at the time the agreement is entered into or renewed, and (c) the Project was not
constructed for a principal purpose of providing the property for use by that Qualified User
or Non-Qualified User. Any Qualified User or Non-Qualified User using all or any portion of
the Project under this type of arrangement may have a right of first refusal to renew the
agreement at rates generally in effect at the time of the renewal.
(4) Agreements with Qualified Users or Non-Qualified Users to use all ora
portion of the Project for a period up to 50 days in length pursuant to a negotiated
arm’s-length arrangement at fair market value so long as the Project was not constructed
for a principal purpose of providing the property for use by that person.
“Regulations” means United States Treasury Regulations governing obligations the
interest on which is excluded from grossincome for federal income tax purposes under Code §§
103 and 141-150.
“Special Tax Counsel” means Gilmore & Bell, P.C., Kansas City, Missouri, or other
nationally recognized firm of bond counsel acceptable to the Lender.
3
