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issued in anticipation of the issuance of said bonds for the above- <br />described purpose. The Notes shall bear interest at a rate or rates not <br />exceeding the maximum interest rate of fifteen per centum (15%) per <br />annum, as may be fixed by the Director of Finance in his certificate <br />awarding the Notes at private sale, such interest to be payable at <br />maturity, with provision, if requested by the purchaser, that, in the <br />event of default, the same shall bear interest at a rate or rates not <br />exceeding fifteen per centum (15%) per annum until the principal sum is <br />paid; shall be dated their date of issuance; shall mature one year from <br />date of issuance; shall not be subject to redemption by the City at any <br />time prior to maturity, unless the original purchaser of the Notes <br />requests that the Notes provide for such redemption, in which case <br />provision shall be made for calling the Notes for redemption upon ten <br />(10) days written notice to the original purchaser; shall be designated <br />"Motorized Equipment Bond Anticipation Notes - 1987 Renewal"; shall be <br />issued in such numbers and denominations as may be requested by the <br />original purchaser; and shall be payable as to both principal and <br />interest at banks or trust companies, as determined by the Director of <br />Finance, without deduction for exchange, collection or service charge. <br /> <br /> Section 4. That the Notes shall be executed by the Mayor and <br />Director of Finance, provided that one of such signatures may be a <br />facsimile signature, and bear the seal of the corporation or a facsimile <br />thereof. The Notes shall express upon their faces the purpose for which <br />they are issued and that they are issued pursuant to this ordinance. <br /> <br /> Section 5. Subject to the rejection of the Notes by the <br />Director of Finance for investment in the Bond Retirement Fund, the <br />Notes shall be sold at the par value thereof by the Director of Finance <br />at private sale at an interest rate not exceeding that specified in <br />Section 3 of this ordinance and in accordance with the best interests <br />and welfare of the City; and the Director of Finance is hereby author- <br />ized and directed to deliver the Notes, when executed, to the original <br />purchaser or purchasers thereof upon payment of the purchase price. The <br />proceeds of such sale shall be paid into the proper fund and used for <br />the purpose for which the Notes are being issued under the provisions of <br />this ordinance. Any premium and accrued interest shall be transferred <br />to the Bond Retirement Fund to be applied to the payment of the princi- <br />pal of an interest on the Notes in the manner provided by law. <br /> <br /> The City covenants that it will restrict the use of the <br /> proceeds of the Notes in such manner and to such extent, if any, as may <br /> be necessary so that the Notes will not constitute arbitrage bonds under <br /> Section 148 of the Internal Revenue Code of 1986, as amended (the <br /> "Code"). The Director of Finance, as the fiscal officer, or any other <br /> officer of the City having responsibility for the issuance of the Notes <br /> shall give an appropriate certificate of the City, for inclusion in the <br /> transcript of proceedings for the Notes, setting forth the reasonable <br />'expectations of the City regarding the amount and use of all the pro- <br /> ceeds of the Notes, the facts, circumstances, and estimates on which <br /> they are based, and other facts and circumstances relevant to the tax <br /> treatment of interest on the Notes. <br /> <br /> The City covenants that it (a) will take or cause to be taken <br />such actions which may be required of it for the interest on the Notes <br />to be and remain excluded from gross income for federal income tax <br />purposes, and (b) will not take or permit to be taken any actions which <br /> <br />-2- <br /> <br /> <br />