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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 />'Codd). 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 or~ 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 inc. omc <br />for federal income tax purposes, and (b) 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 bo~owing, <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 undertaking to <br />provide annual reports and notices of certain events dated the date of delivery of the Notes and <br />delivered to the original purchaser of the Notes for the benefit of the holders of the Notes (the <br />2xloteholderg) and to assist the original purchaser in complying with S.E2C. Rule 15c2-12(b)(5). <br />The City hereby covenants and agrees that it will comply with and carry out all of the provisions <br />of the Disclosure Certificate. Failure of the. City to comply with the Disclosure Certificate shall <br />not be considered an event of default; however, any Noteholder may take such actions as may be <br />necessary and appropriate to cause the City to comply with its obh'gations 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 fr~)m 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 wlfile 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 oftbe 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 he 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 orthe 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 />are appropriated for such purpose,/he amount of such direct tax upon all of the taxable property <br />in the' City shall be reduced by the mount of such revenues so available and appropriated. <br /> <br /> Section 10. 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 /> <br />{rd. F2038;1} 3 <br /> <br /> <br />