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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 />arbitrage bonds under Section 148 of the Intemaj 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 />re?ponsibility for the issuance of the Notes shall give an appropriate certificaæ 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 alj the proceeds of the Notes, the facts,
<br />ci:rpumstances, and estimates on which they are based, and other facts and circ~stances relevant
<br />to the tax treatment of interest on the Notes.
<br />
<br />The City covenants that it (a) will take or cause to be taken such actions which
<br />mäy 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 of the borrowing,
<br />(ii) restrict the yield on investment property acquired with those proceeds, (iii) make timely
<br />reçate payments to the federal government, (iv) maintain books and reboids and make
<br />c:l1culations 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 apd all actions,
<br />make cakulations and rebate payments, and make or give reports and certific~ti9ns as may be
<br />appropriate to assure such exclusion of that interest
<br />
<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 pr~mpt payment of
<br />the0 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 thereòn, and is hereby
<br />pledged for such purpose,
<br />
<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 ta¡<.es, a direct tax
<br />annually not jess 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, cer¡:ified, 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 å 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 />extent 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 />in the City shall be reduced by the amount of such revenues so available and appropriated. The
<br />City covenants to appropriate annually from lawfully availabje income taxes levied by the City,
<br />and to continue to levy and collect such income táxes in, amounts necessary to pay debt charges
<br />on the Notes.
<br />
<br />Section 9, It is hereby determined and recited that all acts, conditions and things
<br />,
<br />necessary to be done precedent to and in the issuing of the Notes in order to make them legal,
<br />val-tcl and binding obligations of the City of Lakewood, will have been done andperfonned in
<br />regülar and due fann as required by law; and that no limitation of indebtedness or taxation, either
<br />statutory or constitutional, will have been exceeded in the issuance of said Notes,
<br />
<br />Section 10 The Clerk of Council is hereby directed to forward a certified copy of
<br />this ordinance to the County Auditor.
<br />
<br />Section 11, It is found and determined that all formal actions :of this Council
<br />conçeming and relating to the passage of this ordinance were passed in an open] meeting of this
<br />
<br />{2005W ATERIMPNOTEAMENDED.DOC;2J
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