02-01 Various Purpose Bonds $2,994,000

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collected. Said tax shall be placed before and in preference to all other items and for the full amount thereof. The funds derived from said tax levy hereby required shall be placed in a separate and distinct fund, which, together with the interest collected on the same (other than such interest as may be required to be rebated to the federal government), shall be irrevocably pledged for the payment of the principal of and interest on said Bonds when and as the same fall due; provided, however, that in each year to the extent that other revenues are available from other sources for the payment of the Bonds and are appropriated for such purpose the amount of such direct tax upon all of the taxable property in the City shall be reduced by the amount of such other revenues so available and appropriated. SECTION 9. It is hereby determined that all acts, conditions and things necessary to be done precedent to and in and for the issuing of said Bonds in order to make them legal, valid and binding obligations of the City have been performed in regular and due form as required by law; that the full faith and credit of said City shall be and are hereby irrevocably pledged for the prompt payment of the principal and interest thereof at mamrit3r, and that no limitation of indebtedness or taxation, either statutory or constitutional, will be exceeded in issuing said Bonds. SECTION 10. The City covenants that it will restrict the use of the proceeds of said Bonds in such manner and to such extent, if any, as may be necessary so that the Bonds will not constitute arbitrage bonds under Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"). The Fiscal Officer, as the fiscal officer, or any other officer of the City having responsibility for the issuance of the Bonds shall give an appropriate certificate of the City, for inclusion in thc transcript of proceedings for the Bonds, setting forth the reasonable expectations of the City regarding the amount and use of all the proceeds of the Bonds, the facts, circumstances and estimates on which they are based, and other facts and circumstances relevant to the tax treatment of the interest on the Bonds. The City further covenants that it (a) will take or cause to be taken such actions that may be required of it for the interest on the Bonds to be and remain excluded from gross income for federal income tax purposes, and Co.) will not take or authorize to be taken any actions that would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts of compliance, 0) apply the proceeds of the Bonds to the governmental purpose of the borrowing, (ii) restrict the yield on investment prope.rty 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 those 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 authorized and directed to take any and all actions, make calculations and rebate payments, and make or give repons and certifications, as may bc appropriate to assure such exclusion of that interest. SECTION 11. The Fiscal Officer is authorized and directed to execute a continuing disclosure certificate (the '*Disclosure Certificate") setting forth the City's undertaking to provide annual reports and notices of certain events dated the date of delivery of the Bonds and delivered to the,Original Purchaser for the benefit of the bondholders and to assist the Original Purchaser in complying with S.E.C. Rule 15c2-12CO)(5). The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Disclosure Certificate. Failure of the City of comply with the Disclosure Certificate shall not be considered an event of default; however, any Bondholder may tal~e such actions as may be necessary and appropriate to cause the City to comply with its obligations under this Section. SECTION 12. The Fiscal Officer, as fiscal officer of the City, is hereby directed to forward a certified copy of this ordinance .to the County Auditor. SECTION 13. It is found and determined that all formal actions of this Council concerning and relating to the passage of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with all legal requirements, including the City's Charter and Codified Ordinances. {KLFO962.DOC;I } 7