71-88 Water System Improve BAN $1,200,000

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Anticipation Notes - 1988 Renewal"; shall be issued in such numbers and denominations as may be requested by the original purchaser; and shall be payable as to both principal and interest at the office of the Director of Finance of the City, or at banks or trust companies, as determined by the Director of Finance, without deduction for exchange, collection or service charge. Section ~. That the Notes shall be executed by the Mayor and Director of Finance, provided that one of such signatures may be a facsimile signature, and bear the seal of the corporation or a facsimile thereof. The Notes shall express upon their faces the purpose for which they are issued and that they are issued pursuant to this ordinance. Section 5. Subject to the rejection of the Notes by the Director of Finance for investment in the Bond Retirement Fund, the Notes shall be sold at the par value thereof by the Director of Finance at private sale at an interest rate not exceeding that specified in Section 3 of this ordinance; the Director of Finance is hereby author- ized and directed to deliver the Notes, when executed, to the original purchaser or purchasers thereof upon payment of the purchase price. The proceeds of such sale shall be paid into the proper fund and used for the purpose fo~ which the Notes are being issued under the provisions of this ordinance and to pay those costs of issuance set forth in Section 133.361, Ohio Revised Code. Any premium and accrued interest shall be transferred to the Bond Retirement Fund to be applied to the payment of the principal of an interest on the Notes in the manner provided by law. The City covenants that it will restrict the use of the pro- ceeds of the Notes in such manner and to such extent, if any, as may be necessary, after taking into account reasonable expectations at the time of the delivery of and payment for the Notes, so that the Notes will not constitute arbitrage bonds under Section 148(a) of the Internal Revenue Code of 1986 (the "Code") and the applicable regulations prescribed under that Section. The Director of Finance or any other officer having responsibility for issuing the Notes, shall, alone or with any other officer or employee of or consultant to the City, give an appropriate certificate of the City for inclusion in the transaction or proceedings for the Notes, setting forth the reasonable expectations of the City regarding the amount and use of all the proceeds of the Notes and the facts and estimates on which they are based, all as of the date of delivery of and payment for the Notes. The City covenants that it will take all actions that may be required of the City for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, and will not take any actions which would adversely affect such exclusion, under the provisions of federal tax laws that apply to the Notes, including the provisions of the Code and applicable amendments thereto, and will, among other acts of compliance, apply the proceeds of the Notes, re- strict the yield on investments of, or on obligations acquired with, such proceeds, make timely rebate payments to the federal government, maintain books and records, and refrain from certain uses of proceeds, all in such manner and if and to the extent necessary for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes; and the Director of Finance and other appropriate officers are hereby authorized and directed to take any and all such actions, make such rebate payments and make or give such reports and certifications as may be appropriate to assure such exclusion of the interest. -2-