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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 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 />arbjtrage 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 />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 />cirè;umstances, and estimates on which they are based, and other facts and circ~stances relevant
<br />to '(he tax treatment of interest on the Notes ;
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<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 frpm gross income
<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 ¿omphance, (i) apply the proceeds of the Notes to the governmental purpose 6f 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 recprds and make
<br />caltulations and reports, arid (v) refrain from certain uses of proceeds, all in su¿h 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 />m4e calculations and rebate payments, and make or give reports and certific¿ti6ns as may be
<br />appropriate to assure such exclusion of that interest.
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<br />Section 7. The Notes shall be the fuU general obligations of the City of
<br />Lakewood and the fuU 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 purpose
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<br />Section 8 Duiing the year or years while the Notes run, there shaU be levied on
<br />all the taxabk 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 is~ued without the
<br />priqr issue of the Notes Said tax shall be and is hereby ordered computed, certìfi~d, 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 irrevocably pledged
<br />for {:he 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 />ext~þt that revenues are available from other sources for the payment of the Note's and bonds and
<br />are~ppropriated for such purpose, the amount of such direct tax upon all of the taxable 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 determined and recited that all acts, condÙions and things
<br />nec~ssary to be done precedent to and in the issuing of the Notes in order to make them legal,
<br />valid and binding obligations of the City of Lakewood, will have been done a~dperfonned in
<br />regular and due fonn as requited by law; and that no limitation of indebtedness ai- taxation, either
<br />statutory or constitutional, will 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 certified copy of
<br />this :ordinance to the County Auditor.
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<br />Section 11 It is found and detennined that all fonnal actions of this Council
<br />con~erning 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 committees that resulted in
<br />such formal action, were in meetings open to the public, in compliance· with all legal
<br />requirements includjng the City's Charter and Codified Ordinances.
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<br />{KLF3007.DOC;I)
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