05-90 Real Estate Acquisition Bond $485,000

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amended (the "Code"), (ii) is not treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations by the Code, and (iii) is exempt from the Ohio personal income tax and excluded from the net income base of the Ohio corporate franchise tax, and (b) the Notes are not "private activity bonds" as defined in the Code. Under the Code, the interest may be subject to alternative minimum, environmental, and branch profits taxes imposed on certain corporations, and to a tax imposed on excess net passive income of certain S corporations. For a more complete discussion of tax aspects, see the enclosed Preliminary Official Statement. The Notes are to be issued in anticipation of bonds for the purpose of acquiring real estate for municipal purposes. The Notes, unless paid from other sources and subject to the provisions of federal bankruptcy law and other laws affecting creditors' rights, are to be paid from the proceeds of the levy of ad valorem taxes on all property subject to ad valorem taxes levied by the City, which taxes are within the ten-mill limitation imposed by law. The Notes will be prepared in typewritten or xerographically reproduced form at the expense of the City. If the original purchaser requests printed Notes, the original purchaser must pay the expense of printing. Delivery will be made without charge at such place in the State of Ohio as the original purchaser shall designate, provided that other mutual satisfactory arrangements for delivery outside the State of Ohio at the expense of the original purchaser may be made. It is anticipated that delivery will be made approximately on March 28, 1990. The original purchaser must pay for the Notes on the date of delivery in Federal Reserve Funds of the United States of America. The City deems the enclosed Preliminary Official Statement to be final as of its date within the meaning of paragraph (b)(1) of Section 240.15c2-12 ("Rule 15c2-12") of the General Rules and Regula- tions, Securities and Exchange Act of 1934. The City will furnish the original purchaser within seven business days of March 14, 1990 at least one final Official Statement, and the original purchaser is authorized to reproduce and circulate at its expense such final Official Statement in sufficient quantity to comply with paragraphs (b)(3) and (b)(4) of Rule 15c2-12 and the rules of the Municipal Securities Rulemaking Board. If the original purchaser has purchased the Notes for reoffering to the public, the original purchaser will be required to provide to the City, prior to the delivery of the Notes, the initial offering price of each maturity of the Notes to the public (excluding bondhouses, brokers and other intermediaries), which prices shall be expressed as a dollar amount (the "initial offering prices"). Regardless of whether the original purchaser has purchased the Notes for reoffering or for holding for its account, the original purchaser will be required to provide to the City, prior to the delivery of the Notes, the yield on the Notes, being that yield which, when used in computing present value of all payments of principal and interest to be paid on the Notes, produces an amount equal to the issue price of the Notes, the "issue price" being (a) the aggregate of the initial offering prices plus accrued interest, if any, or (b) if the Notes are purchased by the original purchaser for holding for its account, the price paid to the City by the original purchaser, including any accrued interest. The original purchaser will also be required to execute a certificate prepared by Bond Counsel and dated the closing date (a) setting forth the issue price, (b) stating that (1) 10% or more in par amount of each maturity of the Notes was sold to the public at or below the initial offering prices or (2) the Notes were purchased by the original purchaser for holding for its account, as the case may be, and (c) certifying that the yield supplied to the City is that yield which, when used in computing the present -2-