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<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.
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<br />The City Covenants that it will restrict the use of the proceeds o(the Notes in such
<br />manner and to such extent, if any, as may be necessary 80 that the Notes will not constitute
<br />arbitrage bonds under Section 148 of the Intemaj Revenue Code of 1986, as amended (the
<br />"C'ode"). 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 al1 the proceeds of the Notes, the facts,
<br />circumstl.Jllces, and estimates on which they are based, and other facts and cirCu41stances- relevant
<br />to tþe tax treatment of interest on the Notes
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<br />'j The City covenants that it (a) will take or cause to be taken such actions which
<br />may be required of Ît for the interest on the Notes to be and remain excluded from gross income
<br />for federal income tax purposes, and (b) will not take or permit to be taken any actions which
<br />woúld 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 pnrpose 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 recðrds and make
<br />calculations and reports, and (v) refrain from certain uses of proceeds, all in suclJ manner and to
<br />the extent necessary to assure slich 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 certificatiOris as may be
<br />apprgpriate to assure such exclusion of that interest.
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<br />Section 7, The Notes shall be the fu]] general obligations of the City of
<br />Lakef.vood and the fu]] 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 pnrpose,
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<br />Section 8 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, ~ direct tax
<br />annually not less than that which would have been levied if bonds had been issued withont the
<br />prior issue of the Notes Said tax shall be and is hereby ordered computed, certified; levied and
<br />extençIed upon the tax duplicate and collected by the same officers, in the same manner and at
<br />the såme time that taxes for general purposes of each of said years are certified, e.x;tended and
<br />co]]eCted. Said tax shall be placed before and in preference to all items and for the fu]] 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 shaH 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 \ssued, when and as the same falls due; provided, however, that in each year to the
<br />exteritithat revenues are available from other sources for the payment of the Notes and bonds and
<br />are appropriated for such purpose, the amount of such direct tax upon all of the tax:able property
<br />in the lÇity sha]] be rednced hy 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, conditiops 'and things
<br />necessary to be done precedent to and in the issuing of the Notes in order to make them legal,
<br />valid aÌ1d binding obligations of the City of Lakewood, wilJ have been done and performed in
<br />regular and due fonn as required by law; and that no limitation of indebtedness or ta~ation, either
<br />statutory or constitutional, wiJI 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 certlfied copy of
<br />this ordinance to the County Auditor
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<br />Section 11, It is found and determined that all formal actions of this Council
<br />concerriing and relating to the passage of this ordinance were passed in an open meeting of this
<br />Counci), and that all snch deliberations of this Council and any of its committees that resulted in
<br />such fórmal action, were in meetings open to the public, in compliance with all legal
<br />requirements including the City's Charter and Codified Ordinances
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<br />{KLF300S.DOC;lJ
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