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<br />shall be paid into the Bond Retirement Fund to be applied to the payment of! the prinçipal and
<br />in¡terest 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 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 />inplusion in the transcript of proceedings for the Notes, setting forth the reasOliable expectations
<br />0(, the City regarding the amount and use of all the proceeds of the 'Notes, the facts,
<br />ci~cumstances, and estimates on which they are based, and other facts and circumstances relevant
<br />to·the tax treatnientof interest on the Notes
<br />
<br />The City covenants that it (a) will take or cause to be taken stich 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 (b) will not take or pennit to be taken âny actions which
<br />wöuld adversely affect that exclusion, and that it, or persons acting for it, will,! among other acts
<br />of compliance, (1) 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, . (iíi) 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 />th~ 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 certific'ations 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 piedged 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 run, there shall be levied on
<br />alY'the taxabie property in the City of Lakewood, in addition to all other taxis, a direct tax
<br />anÌmally 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 sai-d years are certified, extended and
<br />collected. Said tax sha1l be placed before and in preference to all items and for the fu1l amount
<br />thereof The funds derived from said tax levies hereby required shall be placeäin a separate and
<br />di~Jinct fund which, together with the interest collected on the same shall be irr~v6cably pledged
<br />foi/the payment of the principal of and interest on the Notes or the bonds in anticipation of which
<br />th~y 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, the amount of such direct tax upon aU of th, taxabie 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 detennined and recited that aU acts, couditions and thjngs
<br />necessary to be done precedent to and in the issuing of the Notes in order to kake them legal,
<br />valid and binding obligations of the City of Lakewood, will have been done ~d pelformed in
<br />regular and due fonn as required by law; and that no Hmitation 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 Ckrk of Council is hereby directed to forward a'certjfied copy of
<br />thi$ 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 />concerning and relating to the passage of this ordinance were passed in an open meeting of this
<br />Council, and that all such deliberations of this Council and any of its committe~s that resulted in
<br />such formal 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 />{KLF3014.DOC;! }
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