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used to pay, and are hereby appropriated to pay, those certain costs Of issuance set forth in
<br />Section 133.15(B), Ohio Revised Code; any such costs also may be paid out of any other
<br />lawfully available moneys of the City, which monies are hereby appropriated to such purpose;
<br />any such costs may 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 accrued interest
<br />shall be paid into the Bond Retirement Fund to be applied to the paymem of the principal and
<br />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 the Notes in such
<br />manner and to such extent, if any, as may be necessary so that the Notes will not constitute
<br />arbitrage bonds under Section 148 of the Internal Revenue Code of 1986, as amended (the
<br />"Code").. The Fiscal Officer, as the fiscal o.fficer, or any other officer of the City having
<br />responsibility for the issuance of the Notes shall give an appropriate certificate of the City, for
<br />inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations
<br />of the City 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 circumstances relevant
<br />to the tax treatment of interest on the Notes.
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<br /> The City covenants that it (a) will take or cause to be taken such actions which
<br />may' be required of it for the interest on the Notes to be and remain excluded from gross income
<br />for federal income tax purposes, and Co) will not take or permit to be taken any actions which
<br />would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts
<br />of compliance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing,
<br />(ii) restrict the yield on investment property acquired with those proceeds, (iii)make timely
<br />rebate payments to the federal government, (iv)maintain books and records and make
<br />calculations and reports, and (v) refrain from certain uses of proceeds, ail in such manner and to
<br />the extent necessary to assure such exclusion of that interest under the Code. The Fiscal Officer
<br />and other appropriate officers are hereby authorized and directed to take any and all actions,
<br />make calculations and rebate payments, and make or give reports and certifications as may be
<br />appropriate to assure such exclusion of that interest.
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<br /> Section 7. The Notes shall be the full general obligations of the City of
<br />Lakewood and the full faith and credit of said City are hereby pledged for the prompt payment of
<br />the same. The par value to be received from the sale of the bonds anticipated by the Notes and
<br />any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used
<br />only for the retirement of the Notes at maturity, together with the interest thereon, and is hereby
<br />pledged for such purpose.
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<br /> Section 8. During the year or years while the Notes nm, there shall be levied on
<br />all the taxable property in the City of Lakewood, in addition to all other taxes, a direct tax
<br />armuaily not less than that which would have been levied if bonds had been issued without the
<br />prior issue of the Notes. Said tax shall be and is hereby ordered computed, certified, levied and
<br />extended upon the tax duplicate and collected by the same officers, in the same manner and at
<br />the same time that taxes for general purposes of each of said years are certified, extended and
<br />collected. Said tax shall be placed before and in preference to all items and for the full mount
<br />thereof. The funds derived from said tax.levies hereby required shall be placed in a separate and
<br />distinct fund which, together with the interest collected on the same shall be irrevocably pledged
<br />for the payment of the principal of and interest on the Notes or the bonds in anticipation of which
<br />they are issued, when and as the same falls due; provided, however, that in each year to the
<br />extent that revenues are available from other sources for the payment of the Notes and bonds and
<br />axe appropriated for such purpose, the amount of such direct tax upon ail of the taxable property
<br />in the City shall be reduced by the amount of such revenues so available and appropriated.
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<br /> Section 9. It is hereby determined and recited that all acts, conditions and things
<br />necessary to be done precedent to and in the issuing of the Notes in order to make them legal,
<br />valid and binding obligations of the City of Lakewood, will have been done and performed in
<br />regular and due form as required by law; and that no limitation of indebtedness or taxation, either
<br />statutory or constitutional, will have been exceeded in the issuance of said Notes.
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<br /> Section 10. The Clerk of Council is hereby directed to forward a certified copy of
<br />this ordinance to the County Auditor.
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<br />{YMI0044;2} 3
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