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Section 5. The Notes shall be sold at not less than the par <br />value thereof in a manner determined by the Fiscal Officer to the <br />purchaser offering the lowest interest cost to the City at an interest <br />rate not exceeding that specified in Section 3 of this ordinance after <br />distribution to prospective purchasers of the Notes of an Invitation for <br />Proposals substantially in the form attached hereto as Exhibit 1. The <br />Director of Law shall obtain the services of qualified Bond Counsel, and <br />his selection of Calfee, Halter & Griswold, Bond Attorneys, Cleveland, <br />Ohio, as Bond Counsel for the Notes is hereby confirmed, approved and <br />ratified. The Fiscal Officer shall ~ause the Notes to be prepared, and <br />have the Notes signed and delivered, together with a true transcript of <br />proceedings with reference to the issuance of the Notes, to the original <br />purchaser thereof upon payment of the purchase price. The proceeds from <br />the sale of said Notes, except the accrued interest thereon, shall be <br />paid into .the proper fund and used for the purpose for which the Notes are <br />being issued under the provisions of this ordinance. The proceeds of the <br />Notes also may be used to pay, and are hereby appropriated to pay, those <br />certain costs of issuance set forth in Section 133.15(B), Ohio Revised <br />Code; any such costs also may be paid out of any other lawfully available <br />moneys of the City, which monies are hereby appropriated to such purpose; <br />any such costs which are future financing costs may be paid from the same <br />sources from which the prinuipal of and interest on the Notes are paid, <br />which monies are hereby appropriated for such purpose. Any accrued <br />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 <br />by law. <br /> <br /> The City covenants that it will restrict the use of the pro- <br />ceeds of the Notes in such manner and to such extent, if any, as may be <br />necessary so that the Notes will not constitute arbitrage bonds under <br />Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"). <br />The Fiscal Officer, as the fiscal officer, or any other officer of the <br />City having responsibility for the issuance of the Notes shall give an <br />appropriate certificate of the City, for inclusion in the transcript of <br />proceedings for the Notes, setting forth the reasonable expectations of <br />the City regarding the amount and use of all the proceeds of the Notes, <br />the facts, circumstances, and estimates on which they are based, and other <br />facts and circumstances relevant to the tax treatment of interest on the <br />Notes. <br /> <br /> The City covenants that it (a) will take or cause to be taken <br />such actions which may be requiredof it for the interest on the Notes to <br />be and remain excluded from gross income for federal income tax purposes, <br />and (b) will not take or permit to be taken any actions which would <br />adversely affect that exclusion, and that it, or persons acting for it, <br />will, among other acts of compliance, (i) apply the proceeds of the Notes <br />to the governmental purpose of the borrowing, (ii) restrict the yield on <br />investment property acquired with those proceeds, (iii) make timely rebate <br />payments to thefederal government, (iv) maintain books and recOrds and <br />make calculations and reports, and (v) refrain from certain uses of <br />proceeds, all in such manner and to the extent necessary to assure such' <br />exclusion of that interest under the Code. The Fiscal Officer and other <br />appropriate officers are hereby authorized and directed to take any and <br />all actions, make calculations and rebate payments, and make or give <br />reports and certifications as may be appropriate to assure such exclusion <br />of that interest. <br /> <br /> Section 6. The Notes shall be the full general obligations of <br />the City of Lakewood and the full faith, credit and revenue of said City <br />are hereby pledged for the prompt payment of the same. The par value to <br />be received from the sale of the bonds anticipated by the Notes and any <br />excess funds resulting from the issuance of the Notes shall, to the extent <br />necessary, be .used only for the retirement of the Notes at maturity, <br />together with the interest thereon, and is hereby pledged for such <br />purpose. <br /> <br />-2- <br /> <br /> <br />