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payment of the purchase price. The proceeds from the sale of said Notes, except the accrued <br /> interest thereon, shall be paid into the proper fund and used for the purpose for which the Notes <br /> are being issued under the provisions of this ordinance. The proceeds of the Notes also may be <br /> 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 payment of the principal and <br /> interest of the Notes in the manner provided by law. <br /> <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 officer, 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. <br /> <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, all 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. <br /> <br /> .Section7. The Fiscal Officer is authorized and directed to execute a <br /> continuing disclosure certificate (the "Disclosure Certificate") setting forth the City's <br /> undertaking to provide annual reports and notices of certain events dated the date of delivery of <br /> the Notes and delivered to the original purchaser of the Notes for the benefit of the holders of the <br /> Notes (the "Noteholders") and to assist the original purchaser in complying with S.E.C. <br /> Rule 15c2-12(b)(5). The City hereby covenants and agrees that it will comply with and carry out <br /> all of the provisions of the Disclosure Certificate. Failure of the City to comply with the <br /> Disclosure Certificate shall not be considered an event of default; however, any Noteholder may <br /> take such actions as may be necessary and appropriate to cause the City to comply with its <br /> obligations under this Section. <br /> <br /> Section 8. 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 fi:om 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. <br /> <br /> Section 9. During the year or years while the Notes run, 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 /> annually 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 amount <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 /> <br />{KLF0882.DOC;~ } 3 0 ~ <br /> <br /> <br />