01-92 Sanitary Sewer Bonds $6,500,000

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occurring payment of interest on the Series 1992 Bonds in the manner provided by law. The Issuer covenants that it will restrict the use of the proceeds of the Series 1992 Bonds in such manner and to such extent, if any, as may be necessary so that the Series 1992 Bonds will not constitute arbitrage bonds under Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"). The Fiscal Officer, or any other officer of the Issuer having responsibility for the issuance of the Series 1992 Bonds shall give an appropriate certificate of the Issuer, for inclusion in the transcript of proceedings for the Series 1992 Bonds, setting forth the reasonable expectations of the Issuer regarding the amount and use of all the proceeds of the Series 1992 Bonds, the facts, circumstances, and estimates on which they are based, and other facts and circumstances relevant to the tax treatment of interest on the Series 1992 Bonds. 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 Series 1992 Bonds 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 Series 1992 Bonds 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. Any excess funds resulting from the issuance of the' Series 1992 Bonds shall, to the extent necessary, be used only for the retirement of the Series 1992 Bonds at maturity or by redemption, together with the interest thereon, and are hereby pledged for such purpose in accordance with provisions of the General Bond Legislation. .Section 6. The Series 1992 Bonds are special obligations of the Issuer, the Bond Service Charges on which are in any calendar year equally and ratably with any other Bonds and Notes outstanding 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 such calendar year, but only payable from and secured -9-