14LEVESQUE LAW GROUP LLC
3380 Street Suite 202
Anchorage Alaska 99503
Phone 907 261-8935
Fax 206 309-0667
Email joe@levesquelawgroup.com
September 16 2015
Kodiak Island Borough Alaska
Alaska Municipal BondBank
Re Kodiak Island Borough Alaska
$6210000 General Obligation School Bond 2015 Series
We have servedasco-bondcounsel to Kodiak Island Borough Alaska the
Borough in connection withthe issuance ofthe above-referenced bond the 2015A
Bond and in that capacity have examined such law and such certified proceedings
and other documents as we have deemed necessary to render this opinion As to
matters offact material to this opinion we have relied upon representations contained in
the certified proceedings and other certificationsof public officials furnished to us
without undertaking to verify the same by independent investigation
The 2015A Bond is issued by the Borough pursuant to Resolution No FY2016-
05 the Resolution under and in accordance withtheConstitution and laws of the
State of Alaska and the ordinances and resolutionsof the Borough
We have not been engaged to review and thus express no opinion concerning
the completeness or accuracy of any official statement offering circular or other sales or
disclosure material relating to the issuance ofthe 2015A Bond or otherwise used in
connection withthe 2015A Bond or the Alaska Municipal BondBank General Obligation
Bonds 2015 Series Three the Bond Bank Bonds portion of the proceeds of which
are being used to acquire the 2015A Bond or otherwiseused in connection with the
2015A Bond or the BondBank Bonds
Under theInternal Revenue Code of 1986 as amended the Code the
Borough is required to comply withcertain requirements after thedate of issuance of
the 2015A Bond in order to maintain the exclusion oftheinterest on the 2015A Bond
from gross income for federal income tax purposes including without limitation
requirements concerning the qualified use of 2015A Bond proceeds and the facilities
financed or refinanced with 2015A Bond proceeds limitations on investing gross
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LEVESQUE LAW GROUP LLC
Kodiak Island Borough Alaska
Alaska Municipal BondBank
September 16 2015
Page
proceeds of the 2015A Bond in higher yielding investments in certain circumstances
and the arbitrage rebate requirement to the extent applicable to the 2015A Bond The
Borough hascovenanted in the Resolution to comply with those requirements but if the
Borough fails to comply with those requirements interest on the 2015A Bond could
become taxable retroactive to thedate of issuance ofthe 2015A Bond We have not
undertaken anddo not undertake to monitor the Boroughs compliance with such
requirements
Based upon the foregoing as of thedate of initial delivery of the 2015A Bond to
the purchaser thereof and full payment therefor it is our opinion that under existing law
The Borough is duly organized and legallyexisting municipal corporation
underthelaws oftheStateof Alaska
The Loan Agreement between the Borough and the Alaska Municipal
Bond Bank dated as of September 2015 relating tothe 2015A Bond has been duly
authorized executed and delivered by the Borough and is valid and bindingobligation
ofthe Borough enforceable against the Borough in accordance with its terms except
only to theextent that enforcement of payment may be limited by bankruptcy
insolvency or other laws affecting creditors rights and by the application of equitable
principles and the exercise of judicial discretion in appropriate cases
The2015A Bond has been duly authorized and issued by the Borough
and is issued infull compliance withthe provisions of the Constitution and laws ofthe
State of Alaska and the ordinances and resolutionsofthe Borough relating thereto
The2015A Bond constitutesvalid and binding general obligation ofthe
Borough payable fromannual ad valoremtaxes to be levied without limitation as to rate
or amount on all of the taxable property within the Borough except only to the extent
that enforcement of payment may be limited by bankruptcyinsolvency orother laws
affecting creditors rights and by the application of equitableprinciples and the exercise
of judicial discretion in appropriate cases
Assuming complianceby the Borough alter the date of issuance of the
2015A Bond with applicable requirements ofthe Code theinterest on the 2015A Bond
is excluded from gross income for federal income tax purposes and is not an itemoftax
preference for purposes of the alternative minimum tax applicable to individuals
however while interest on the 2015A Bond also is not an item of tax preference for
purposes of the alternative minimum tax applicable to corporations interest on the
2015A Bond received bycorporations is to betaken into account in the computation of
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LEVESQUE LAW GROUP LLC
Kodiak Island Borough Alaska
Alaska Municipal BondBank
September 16 2015
Page
adjusted current earnings for purposes ofthealternative minimum tax applicable to
corporations interest on the 2015A Bond received by certain corporations may be
subject to tax and interest on the 2015A Bond received by foreign corporations with
UnitedStatesbranches may be subject to foreign branch profits tax
Interest on the 2015A Bond is free from taxation by theStateof Alaska
except for transfer estate and inheritance taxes and except to theextentinterest on the
2015A Bond received by corporations and taken into account in the computation of
adjusted current earnings for purposes ofthealternative minimum tax applicable to
corporations may affect the corresponding provisions oftheStateof Alaska corporate
income tax
We express no opinion regarding any other federalorstatetax consequences of
receipt ofinterest on the 2015A Bond
This opinion is given as of the date hereof and we assume no obligation to
reviseor supplement this opinion to reflect any facts or circumstances that may
hereafter come to our attention or anychanges in law that may hereafter occur
We bring to your attention the factthatthe foregoingopinions are expressions of
our professional judgment on thematters expressly addressed and do not constitute
guarantees of result No attorney-clientrelationship has existed or exists between our
firm and the Alaska Municipal Bond Bank in connection with the 2015A Bond or by
virtue of this letter
Respectfully submitted
LEVESQUE LAW GROUP LLC
ôzJ
JosephLevesque
51466920