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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 (tbe
<br />"Code"). The Fiscal Officer, as the fiscal officer, or any other officer of the City having
<br />responsibility for the issuance òf the Notes shall give an appropriate certificate of the City, for
<br />inclusion in the transcript of proceedings for the Notes, setting forth the reasonablè expectations
<br />of the City regarding tbe amount and use of all tbe proceeds of the Notðs, tbe facts,
<br />circumstances, and estimates on which they are based, and other facts and circumst:ances relevant
<br />to the 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 from 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 compliance, (i) apply the proceeds of the Notes to the governmental purpose òf the borrowing,
<br />(ii)restrict the yield on investment property acquired with those proceeds, ~iii) make timely
<br />reb~.te payments to the federal government, (iv) maintain books and recbr~s and make
<br />calqulations 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 arid all actions,
<br />make calculations and rebate payments, and make or give reports and certifidtions as may be
<br />appropriate to assure such exclusion of that interest.
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<br />Section 7. The Notes shall be tbe fuII general obligations ¡ of the City of
<br />Lakewood and the full faitb and credit of said City are hereby piedged for tbe prompt payment of
<br />the 'same. The par value to be received from the sale of the bonds anticipated ßy the Notes and
<br />any excess funds resulting from the issuance of the Notes shall, to the extent nece,i)sary, be used
<br />only for the retirement of the Notes at maturity, together with the interest thereon; ,and is hereby
<br />pleqged 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 />all the taxabie property in tbe City of Lakewood, in addition to all other taxes, a direct tax
<br />annùa1ly 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 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, togetber with the interest collected on the same shalj be jrrevocably piedged
<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 øach year to the
<br />extep.t that revenues are available from other sources for the payment of the Notes and bonds and
<br />are åppropriated for such purpose, tbe amount of such direct tax upon all of tbe tax.able 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 detentlined 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 ni,ak~ them legal,
<br />valid and binding obligations of tbe City of Lakewood, wí1l have been done arid performed in
<br />regµlar and due fonn as required by law; and that no limitation of indebtedness oi taxation, either
<br />statútory or constitutional, will have been exceeded in the issuance of said Notes,;
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<br />Section 10, The Cierk 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 determined that all fonnal actions of this Council
<br />conc'erning and relating to the passage of this ordinance were passed in an open1meeting of this
<br />Council, and that all such deliberations of this Council and any of its cornmittee~ that resulted in
<br />such fonnal 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 />{KLF3011.DOC;I}
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