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Proposals to prospective purchasers of the Notes. The Director of Finance shall
<br /> obtain the assistance of Calfee, Halter & Griswold, Bond Attorneys, Cleveland,
<br /> Ohio, cause the Notes to be prepared, and have the Notes signed and delivered,
<br /> together with a true transcript of proceedings with reference to the issuance of
<br /> the Notes, to the original purchaser thereof upon payment of the purchase price.
<br /> The proceeds from the sale of said Notes, except the accrued interest thereon,
<br /> shall be paid into the General Fund as reimbursement for monies which were, and
<br /> are hereby determined to have been, advanced from the General Fund to the Capital
<br /> Improvement Fund for the purpose for which the Notes are being issued under the
<br /> provisions of this ordinance. The proceeds of the Notes also may be used to pay,
<br /> and are hereby appropriated to pay, those certain costs of issuance set forth in
<br /> Section 133.15(B), Ohio Revised Code; any such costs also may be paid out of any
<br /> other lawfully available moneys of the City, which monies are hereby appropriated
<br /> to such purpose; any such costs which are future financing costs may be paid from
<br /> the same sources from which the principal of and interest on the Notes are paid,
<br /> which monies are hereby appropriated for such purpose. Any accrued interest
<br /> shall be paid into the Bond Retirement Fund to be applied to the payment of the
<br /> principal and interest of the Notes in the manner provided by law.
<br />
<br /> The City covenants that it will restrict the use of the proceeds of
<br />the Notes in such manner and to such extent, if any, as may be necessary so that
<br />the Notes will not constitute arbitrage bonds under Section 148 of the Internal
<br />Revenue Code of 1986, as amended (the "Code"). The Director of Finance, as the
<br />fiscal officer, or any other officer of the City having responsibility for the
<br />issuance of the Notes shall give an appropriate certificate of the City, for
<br />inclusion in the transcript of proceeding~ for the Notes, setting forth the
<br />reasonable expectations of the City regarding the amount.and use of all the
<br />proceeds of the Notes, the facts, circumstances, and estimates on which they are
<br />based, and other facts and circumstances relevant to the tax treatment of
<br />interest on the Notes.
<br />
<br /> The City covenants that it (a) will take or cause to be taken such
<br />actions which may be required of it for the interest on the Notes to be and
<br />remain excluded from gross income for federal income tax purposes, and (b) will
<br />not take or permit to be taken any actions which would adversely affect that
<br />exclusion, and that it, or persons acting for it, will, among other acts of
<br />compliance, (i) apply the proceeds of the Notes to the governmental purpose of
<br />the borrowing, (ii) restrict the yield on investment property acqUired with those
<br />proceeds, (iii) make timely rebate payments to the feder
<br /> (iv) maintain books and rec^-~" ...... al government,
<br /> v~ anu make calculations a .
<br /> (v) refrain from certain uses of Drocead~ -~ ..... nd. reports, and
<br />.... , =~ zn ~ucn manner and to the extent
<br />necessary to assure such exclusion of that interest under the Code. The Director
<br />of Finance and other appropriate officers are hereby authorized and directed to
<br />take any and all actions, make calculations and rebate payments, and make or give
<br />reports and certifications as may be appropriate to assure such exclusion of that
<br />interest.
<br />
<br /> Section 6. The Notes shall be the full general obligations of the
<br />City of Lakewood and the full faith, credit and revenue of said City are hereby
<br />pledged for the prompt payment of the same. The par value to be received from
<br />the sale of the bonds anticipated by the Notes and any excess funds resulting
<br />from the issuance of the Notes shall, to the extent necessary, be used only for
<br />the retiremen~ of the Notes at maturity, together with the interest thereon, and
<br />is hereby pledged for such purpose.
<br />
<br /> Section 7. In the event bonds are not issued to provide a fund for
<br />the payment of the Notes at maturity, during the year or years while the Notes
<br />run, there shall be levied on all the taxable property in the City of Lakewood,
<br />in addition to all other taxes, a direct tax annually not less than that which
<br />would have been levied if bonds had been issued without the prior issue of the
<br />Notes. Said tax shall be and is hereby ordered computed, certified, levied and
<br />extended upon the tax duplicate and collected by the same officers, in the same
<br />manner and at the same time that taxes for general purposes of each of said years
<br />are certified, extended and collected. Said tax shall be placed before and in
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