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<br />shaÌì be paid into the Bond Retirement Fund to be apphed to the payment of the. princjpal 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 />arbitrage bonds under Section 148 of the Internal Revenue Code of 1986, :is amended (the
<br />"Code"), The Fiscaj 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 />circumstances, and estimates on which they are based, and other facts and circumst~nces relevant
<br />to the tax treatment of interest on the Nates
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<br />The City covenants that it (a) wiD 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, a.mQng other acts
<br />of comPhance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing,
<br />(Ü) restrict the yield on investment property acquired with those proceeds, CiÜXmake timely
<br />reb~te payments to the federal government, (iv) maintain books and records and make
<br />calqulations and reports, and (v) refrain from certain uses of proceeds, all in sucþ manner and to
<br />the'þxtent necessary to assure such exclusion of that interest under the Code.. The Fiscal Officer
<br />and:üther appropriate officers are hereby authürized and directed to take any and a11 actions,
<br />make calculations and rebate payments, and make or give reports and certifications 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 lof: the City of
<br />Lalœwood and the full faith and credit of said City are hereby pledged for the prqmpt payment of
<br />the same. The par value tü be received from the sale of the bonds anticipated by the Nütes 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 thereün, 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 />all the taxable property in the City of Lakewood, jn addition to aU other taxes, a direct tax
<br />annllally not iess than that which woujd have been levied if bonds had been issued without the
<br />priür issue of the Notes. Said tax shall be and is hereby ordered cümputed, 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 für general purposes of each .of said years are certified, ·extended and
<br />coUeeted. Said tax shall be placed before and in preference to all items and for the ful1 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 the payment of the principal of and interest on the Notes or the bonds in anticipatiün of which
<br />they are issued, when and as the same falls due; provided, hüwever, that in e:ac~ year to the
<br />extent that revenues are available from other sources for the payment of the Note!:> aTId bonds and
<br />are~ppropriated for such purpose, the amount of such direct tax upon al1 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 dete11TIÍned and recited that all acts, conditions and. things
<br />necessary to be düne 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, wil1 have been done and performed in
<br />regular and due fonn as required by law; and that no limitation of indebtedness OIi taxatiün, either
<br />statçtory or constitutional, will have been exceeded in the issuance of said Notes j
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<br />1} Section 10. The Clerk of Cüuncil is hereby directed to forward a èertified copy of
<br />this:brdinance to the Cüunty Auditor,
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<br />Section 11, It is found and determined that all fonnal 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 committee~ that resulted in
<br />such fonnal action, were in meetings open tü the public, in compliance; with all legal
<br />requirements including the City's Charter and Codified Ordinances.
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<br />{KLF3012.DOC;1}
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