05-99 Municipal Bldg Bonds $600,460

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The City covenants that it will restrict the useofthe proceeds of the Notes in such manner and to such extent, if any. as may be necessary ~o that the Notes will not constitute a~itrage bonds under Section 148 of the Internal Revem~ Code of 1986, as amended (the 'Code"). The Fiscal Officer. as the fiscal officer, or any other officer of the City having ~sponsibility fbr the issuance of the Notes shall give an al~t)mpriate certificate of the City, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City. regarding the amount and use of all the proceeds of the Notes, the facts, cimumstances, and estimates on which they are based, and other facts and cimumstances relevant to the tax treatment of interest on the Notes. The City. covenants that it (a) will take or ca~s~ to b~ taken such actions which may be required of it for the interest on the Notes to be and namain excluded from gross income f~r federal income tax purposes, and (b) will not take or lamxtit to be taken any actions which ~)uid adversely affect that exclusion, and that it, or persoas aming for it, will, among other acts of compliance, (i) apply the proceeds of the Notes to the gov~amaental purpose of the borrowing, (h') restrict the yield on investment property acquired ~ those proceeds, (iii)make timely ~i~te payments to the federal government, (iv)maintain booi~ and records and make calculations and reports, and (v) refrain fxom certain uses ofl~'Oc~eds, all in such manner and to il~ extent necessary to assure such exclusion of that interest andes the Code. The Fiscal Officer a~l other appropriate officers are hereby authorized and din~ted to take any and all actions, make calculations and rebate payments, and make or give t~porm and certifications as may be al~la'ola'iate to assure such exclusion of that interest. Section 7. The 'Fiscal Officer is au~ and directed to execute a cominuing disclosure certificate (the "Disclosure C~aflicate') setting forth the City's mdertsking to provide annual reports and notices of certain gvents dated the date of delivery of the Notes and delivered to the original purchaser of the Notes for the benefit of the holders of the Notes (the "Noteholders") and to assist the original la~_~r in complying with S.E.C. Rule 15c2-I2(b)(5). The City hereby covenants and agrees dm it will comply with and carry out all of the provisions of the Disclosure Certificau~. Failure of the City to comply with the Disclosure Certificate shall not be considered an event of d~)R; however, any Noteholder may mire such actions as may be necessary and appropriate to cause the City to comply with its obligations under this Section. Section 8. The Notes shall I~ the full g~meml obligations of the City of Lak~wood and the full faith and credit of said City are herel~ pledged for the prompt payment of same. The par value to be received from the sale of the h)nds anticipated by the Notes and excess funds resulting from the issuance of the Notes ~ to the extent necessary, be used oaiy for'the retirement of the Notes at maturity, together with the interest thereon, and is hereby l~/edged for such purpose. Section 9. During the year or year~ while tl~ Notes run. there shall be levied on all the taxable propert3' in the City of Lakewood, in addilion to all other taxes, a direct tax a~ally not less than that which would have b~en levied ifl)onds had been issued without the laiOr issue of the Notes. Said tax shall be and is hereby ord~t~l computed, certified, levied and e~tended upon the tax duplicate and collected by the same (ffiicers, in the same manner and at ~ same time that taxes for general ptmposes of each of s~l yearn are c~tified, extended and (a)llected. Said tax shall be placed before and in preferen~ to ali items and for the full amount th~-of. The funds derived from said tax levies hereby requi~I shall be placed in a separate and diviner fund which, together with the interest collected on th, sarae shall be irrevocably pledged f~ the payment of the principal of and interest on the Notes (~ the bonds in anticipation of which th~ are issued, when and as the same falls due; provide& however, that in each year to the (~,ent that revenues are available from other sources for the l~Jment of the Notes and bonds and a~ appropriated for such purpose, the amount of such direct lax upon all of the taxable property i~ the City. shall be reduced by the amount of such revenues s~ available and appropriated. Section t0. [t is hereby determined and recital that ali acts. conditions and things r~2ssar>.' to be done precedent to and in the issuing of the Notes in order to make them legal. ~'alid and binding obligations of the City of Lakewood. will have been done and performed in r~gular and due form as required by law; and that no limitatio~ of indebledness or taxation, either ~amtory or constitutional, will have been exceeded in the i~ce of said Notes. |Ii?I:ENiX~ I ~2,~2\KI.F0307.DOC. ! 1 3