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<br />f)
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<br />shajl be paid into the Bond Retirement Fnnd to be applied to the payment of the'principal and
<br />illteœst of the Notes in the manner provided by jaw,
<br />
<br />The City covenants that it will restrict the use of the proceeds of tþe Notes in such
<br />manner and to such extent, if any, as may be necessary so that the Notes wi1l not constitute
<br />arbitrage bonds nnder Section 148 of the Internal Revenne Code of 1986, ~s amended (the
<br />"Code"). The Fiscal Officer, as the fiscal officer, or any other officer of ~e 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 tb.e tax treatment of interest on the Notes
<br />
<br />The City covenants that it (a) will take or cause to be taken such ~ctions which
<br />ma)i 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 any actions which
<br />wou;ld 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 ~ann~r 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 a~d all actions,
<br />make calculations and rebate payments, and make or give reports and certifica~ions as may be
<br />app~öpriate to assure such exclusion of that interest
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<br />Section 7. The Notes shaU be the fuU general obHgations of the City of
<br />Lalœwood and the full faitb 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 jnterest 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 shaIl be levied on
<br />aU the taxable property in the City of Lakewood, in addition to all other taxes, a direct tax
<br />annually nbt 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, certiified, 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 iITe~ocably pledged
<br />for the payment of the principal of and interest on the Notes or the 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 />extffnt 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 all of the taxable property
<br />jn thþ City shall be reduced by the amount of such revenues so available and appropIjated,
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<br />Section 9, It is hereby determined and recited that all acts, conditjons and things
<br />necessary to be done precedent to and in the issuing of the Notes in order to m~ke them legal,
<br />valid and bindjng obligations of the City of Lakewood, wül have been done and perfonned in
<br />regular and due form as required by law; and that no limitation of indebtedness or taXation, either
<br />statu'iory or constitutional, will have been exceeded in the issuance of said Notes.
<br />
<br />Section 10 The Clerk of CouncÜ is hereby directed to forWard a certified copy of
<br />this ordinance to the County Auditor
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<br />Section II. It is found and determined that alj fonnal actions of this CouncÜ
<br />concbrning and relating to the passage of this ordinance were passed in an open meeting of this
<br />Courtcil, and that all such deliberations of this Council and any of its committees 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 />{KLF3Ö06.DOC;lj
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