Tax Anticipation Note
On June 3, 2013, the City will close a borrowing of $3,821,952.46 in exchange for a Tax Anticipation Note (TAN), accompanied by appropriate City resolutions, legal opinions, and nonarbitrage certificate. The amount of the TAN borrowing has been calculated in accordance with IRS regulations and complies with Section 148 of the Internal Revenue Code of 1986, as amended.
The City will simultaneously invest that portion of the TAN proceeds,
which are not needed immediately.
All investments of the City must be collateralized in accordance with
State Law. This means that these invested funds must be insured by
Federal Deposit Insurance with any portion exceeding those insurance
limits secured by a pledge of direct obligations of the State of Georgia or
the United States of America, the par value of which, together with the
amount of the deposit insurance, being equal to not less than 110% of the
amount of funds invested.
