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attached hereto as Exhibit 1. The Fiscal Officer shall obtain the assistance of
<br />Calfee, Halter & Griswold, Bond Attorneys, Cleveland, Ohio, cause the Notes to
<br />be prepared, and have the Notes signed and delivered, together with a true
<br />transcript of proceedings with reference to the issuance of the Notes, to the
<br />original purchaser thereof upon payment of the purchase price. The proceeds from
<br />the sale of said Notes, except the accrued interest thereon, shall be paid into
<br />the proper fund and used for the purpose for which the Notes are being issued
<br />under the provisions of this ordinance° The proceeds of the Notes may be used
<br />to pay, and are hereby appropriated to pay, those certain costs of issuance set
<br />forth in Section 133.15(B), Ohio Revised Code~ any such costs also may be paid
<br />out of any other lawfully available moneys of the City, which monies are hereby
<br />appropriated to such purpose; any such costs which are future financing costs may
<br />be paid from the same sources from which the principal of and interest on the
<br />Notes are paid, which monies are hereby appropriated for such purpose° Any
<br />accrued interest shall be paid into the Bond Retirement Fund to be applied to the
<br />payment of the principal and interest of the Notes in the manner provided by law.
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<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 Fiscal Officer, or any other
<br />officer of the City having responsibility for the issuance of the Notes shall
<br />give an appropriate certificate of the City, for inclusion in the transcript of
<br />proceedings for the Notes, setting forth the reasonable expectations of the City
<br />regarding the amount and use of all the proceeds of the Notes, the facts,
<br />circumstances, and estimates on which they are based, and other facts and
<br />circumstances relevant to the tax treatment of 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 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 extent
<br />nec'essary to'assure such exclusion of that interest under the Code. The Fiscal
<br />Officer and other appropriate officers are hereby authorized and directed to take
<br />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 retirement of the Notes at maturity, together with the interest thereon~ and
<br />is hereby pledged for such purpose.
<br />
<br /> Section 7. During the year or years while the Notes run, there shall
<br />be levied on all the taxable property in the City of Lakewood, in addition to all
<br />other taxes, a direct tax annually not less than that which would have been
<br />levied if bonds had been issued without the prior issue of the Notes. Said tax
<br />shall be and is hereby ordered computed~ certified, levied and extended upon the
<br />tax duplicate and collected by the same officers, in the same manner and at the
<br />same time that taxes for general purposes of each of said years are certified,
<br />extended and collected° Said tax shall be placed before and in preference to all
<br />items and for the full amount thereof~ The funds derived from said tax levies
<br />hereby required shall be placed in a separate and distinct fund which, together
<br />with the interest collected on the same shall be irrevocably pledged for the
<br />payment of the principal of and interest on the Notes or the bonds in
<br />anticipation of which they are issued, when and as the same falls due; provided,
<br />however, that in each year to the extent that revenues are available from other
<br />sources for the payment of the Notes and bonds and are appropriated for such pur-
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