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would adversely affect that exclusion, and that it, or persons acting
<br />for it, will, among other acts of compliance, (i) apply the proceeds of
<br />the Notes to the governmental purpose of the borrowing, (ii) restrict
<br />the yield on investment property acquired with those proceeds,
<br />(iii) make timely rebate payments to the federal government,
<br />(iv) maintain books and records and make calculations and reports, and
<br />(v) refrain from certain uses of proceeds, all in such manner and to the
<br />extent necessary to assure such exclusion of that interest under the
<br />Code. The Director of Finance and other appropriate officers are hereby
<br />authorized and directed to take any and all actions, make calculations
<br />and rebate payments, and make or give reports and certifications as may
<br />be appropriate to assure such exclusion of that interest.
<br />
<br /> Section 6. The Notes are hereby designated as "qualified
<br />tax-exempt obligations" for purposes of Section 265(b)(3) of the Code.
<br />In that connection, the City hereby covenants that the City, it having
<br />no "subordinate entities" with authority to issue obligations within the
<br />meaning of that Section of the Code, in or during the calendar year in
<br />which the Notes are issued, (i) will not designate as "qualified tax-
<br />exempt obligations" for purposes of Section 265(b)(3) of the Code tax-
<br />exempt obligations, including the Notes, in an aggregate principal
<br />amount in excess of $10,000,000, and (ii) will not issue tax-exempt
<br />obligations within the meaning of Section 265(b)(4) of the Code, includ-
<br />ing the Notes and any qualified 501(c)(3) bonds as defined in Sec-
<br />tion 145 of the Code (but excluding obligations, other than qualified
<br />501(c)(3) bonds, that are private activity bonds as defined in Sec-
<br />tion 141 of the Code), in an aggregate principal amount exceeding
<br />$10,000,000, unless the City receives an opinion of nationally recog-
<br />nized bond counsel that such designation or issuance, as applicable,
<br />will not cause the Notes to cease to be "qualified tax-exempt obliga-
<br />tions.''
<br />
<br /> Section 7. The Notes shall be the full general obligations of
<br />the City of Lakewood and the full faith,, credit and revenue of said City
<br />are hereby pledged for the prompt pa.vment of the same. The par value to
<br />be received from the sale of the bonds anticipated by the Notes and any
<br />excess funds resulting from the issuance of the Notes shall, to the
<br />extent necessary, be used only for the retirement of the Notes at matur-
<br />ity, together with the interest thereon:, and is hereby pledged for such
<br />purpose.
<br />
<br /> Section 8. In the event bonds are not issued to provide a
<br />fund for the payment of the Notes at maturity, during the year or years
<br />while the Notes run, there shall be levied on all the taxable property
<br />in the City of Lakewood, in addition to all other taxes, a direct tax
<br />annually not less than that which would have been levied if bonds had
<br />been issued without the prior issue of the Notes. Said tax shall be and
<br />is hereby ordered computed, certified, levied and extended upon the tax
<br />duplicate and collected by the same officers, in the same manner and at
<br />the same time that taxes for general purposes of each of said years are
<br />certified, extended and collected. Said tax shall be placed before and
<br />in preference to all items and for the full amount thereof. The funds
<br />derived from said tax levies hereby required shall be placed in a
<br />separate and distinct fund which, together with the interest collected
<br />on the same shall be irrevocably pledged for the payment of the
<br />principal of and interest on the Notes or the bonds in anticipation of
<br />which they are issued, when and as the same falls due; provided,
<br />
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