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<br />shaH be paid into the Bond Retirement Fund to be apphed to the payment of the principill and
<br />interest of the Notes in the manner provided by law
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<br />The City covenants that it wiU restrict the use of the proceeds of the Notes in such
<br />maimer and to such extent, if any, as may be necessary so that the Notes will 1;1ot constitute
<br />arbitrage bonds under Section 148 of the Internal Revenue Code of 1986, as amended (the
<br />"C~de"). The Fiscal Officer, as the fiscal officer, or any other officer of the City having
<br />res·þonsibility 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 illl the proceeds of the Notes, the facts,
<br />circ,umstances, and estimates on which they are based, and other facts and circunlstances relevant
<br />to the tax treatment of interest on the Nates.
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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 fr~mgross 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 ~ompliance, (i) apply the proceeds of the Notes to the govemmentill purpose of the borrowing,
<br />(ii) testrict the yiejd on investment property acquired with those proceeds, (iii) make timejy
<br />rebàte payments to the federal government, (iv) maintain books and rec()f4s and make
<br />calculations 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 authoriz~d and directed to take any an.d all actions,
<br />mal}e calculations and rebate payments, and make or give reports and certifications as may be
<br />appropriate to assure such exclusion of that interest I
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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 pledged for the prompt payment of
<br />the same The par value to be received ITom the sale of the bonds anticipated I¡y the Notes and
<br />any excess funds resulting from the issuance of the Notes shan, to the extent n¿cessary, 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 />all the taxable 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 issued without the
<br />prior issue of the Notes, Said tax shall be and is hereby ordered computed, certified, levied and
<br />ex~ended upon the tax duplicate and collected by the same officers, in the sam~ manner and at
<br />the 'same time that taxes for general purposes of each of said years are certified,extended and
<br />coHeeted. Said tax shall be placed before and in preference to illl items and fo~ the full amount
<br />the~eof. 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 anticipation of which
<br />they are issued, when and as the same falls due; provided, however, that in each year to the
<br />ext~nt 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 illl of the taxable property
<br />in the City shilll 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 all acts, conditiöns and things
<br />necçssary to be done precedent to and in the issuing of the Notes in order to :rÍ1ake them legal,
<br />valid and bjnding obhgations of the City of Lakewood, win have been done and performed in
<br />regy.Iar and due form as required by law; and that no limitation of indebtedness or ti;lXation, either
<br />statiltory 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 determined that aH formill actions of this CouncÜ
<br />co~¡::eming and relating to the passage of this ordinance were passed in an opert meeting of this
<br />CoûncH, and that all such deliberations of this Council and any of its committees that resulted in
<br />suer 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 />{KLF301O.DOC;I}
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