53-91 $1mil Sanitary Sewer Special Obligation Notes

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forth in Section 133.15(B)', Ohio Revised Code; any such costs also may be paid out of any other lawfully available moneys of the Issuer, which monies are hereby appropriated to such purpose; any such costs which are future financing costs may be paid from the same sources from which the principal of and interest on the Notes are paid, which monies are hereby appropriated for such' purpose. Any accrued interest shall be paid into the Bond Retirement Fund to be applied to the payme.nt of the principal and interest of the Notes in the manner provided by law. The Issuer covenants that it will restrict the use of the proceeds of the Notes in such manner and to such extent, if any, as may be necessary so that the Notes'<will not constitute arbitrage bonds under Section 148 of the Internal Revenue code of1986, as amended (the "Code"). The Fiscal Officer, or any other officer of the Issuer having responsibility for the issuance of the Notes shall give an appropriate certificate of the Issuer, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the Issuer regarding the amount and use of all the proceeds of the Notes, the facts, circumstances, and estimates on which they are based, and other facts and circumstances relevant to the tax treatment of interest on the Notes. The Issuer covenants that it (a) will take or cause to be taken such actions which may be required of it for the interest on the Notes to be and remain excluded from gross income for federal income tax purposes, and (b) will not take or permit to be taken any actions which would adversely affect that exclusion, and that it, or persons' acting for it, will, among other acts of compliance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing, (ii) restrict the yield on investment property acquired with those proceeds, (iii) make timely rebate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) refrain from certain uses of proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest under the Code. The Fiscal Officer and other appropriate officers are hereby authorized and directed to take any and all actions, make calculations and rebate payments, and make or give reports and certifications as may be appropriate to assure such exclusion of that interest. Section 5. The par value to be received from the sale of the bonds anticipated by the Notes and any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used only for the retirement of the Notes at maturity, together with the interest thereon, and is hereby pledged for such purpose in accordance with provisions of the General Bond Legislation. Section 6 The Notes are special obligations of the Issuer, the principal of and premium and interest (the "Bond Service Oharges") on which are in any calendar year equally and ratably with any Bonds and other Notes outstanding, each as defined in the General Bond Legislation, payable from and secured by the proceeds of a two (2) mill ad valorem property tax levy, levied pursuant to Article XIV, Section 32 of the Issuer's Charter (the "Levy") and collected in su6h calendar year, but only payable from and secured by that portion of such proceeds as is necessary to pay Bond Service Charges on the Notes due in such calendar year (the "Pledged Receipts") provided however, that if, in -4-