40-07 Retiring Motorized Equip Notes

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(2) The proceeds to be received fi.om the sale of any notes issued to refund the Notes end of the Bonds in m~ticipation of which the Notes are issued. (3) Any money remaining fi.om the sale of the Notes and not required for the payment of ensts of the Project. (b) The Debt Service on the Notes must be paid at their maturity fi.om any of the amounts set forth above pledged to their payment, or eny funds of the City otherwise available for their payment. (~) During the years while the Notes are outstanding; there will be levied on all the taxable property in the City, in addition to ail other taxes, a direct tax annually, subject to tax limitations, not less than the tax that would have been levied had the Bonds been issued without the prior issue of the Notes The tax must be end is ordered to be computed, certified, levied, and extended upon the tax list and collected by the same officers, h~ the same mannar, and at the same time that taxes for general purposes for each of those years are computed, certified, levied, extended, end enlleeted. The tax must be placed before and in preference to all other items end for its full amount. The money derived from that tax levy must be placed in the Bond Retirement Fund of the City end is irrevocably pledged for the payment of the Debt Service on the Notesi when and as that Debt Service falls due. If any of the following amounts are available for the payment of the Notes and are appropriated for that purpose, the amount of the tax levy in each year must be reduced by the amount available and appropriated: (I) Any surplus in the Bond Retirement Fund. (2) Proceeds received fi.om the sale of the Bonds m' any notes issued to refund or renew the Notes. (3) Any other money lawfully available to the City Section 11. Federal Tax Matters. Tbe City covenents that it will take those actions required to maintaiu the Federal Tax Status on the Notes end that it will not take or permit to be taken any aetiuns that would adversely affect that Federal Tax Status. Without limiting these covenents, the City specifically covenants as follows: Private Activity Bo~ds. The City will apply the proceeds received from the sale of the Notes to pay costs of the Project, to ret/re the Outstanding Notes, end to pay the Finencing Costs in enunection with the Notes The City will not perrait the use of the Project by any person, will not secure or derive the money for payment of Debt Service on the Notes by any property or payments, and will not loon the proceeds of the Notes to any person, all in a manner as to cause the Notes to be "private activity bonds" within the meaning of Code Seeti0n 141 (a) Arbitrage. The City will restrict the use of proceeds of the Notes in the manner end to the extent as may be necessary; al/er taking into hcenunt reasonable expectations at the time of the delivery of and payment for the Notes, so that the Notes will not constitute "arbitrage bonds" within the meaning of Code Section 148. The Director of Finence or any other official having responsibility for issuing the Notes, is authorized end directed, alone or in conjunction with eny other officer, employee, or consultant of the City, to siva and deliver a certificate of the City, for inclusion in the transcript of proceedings for the Notes, setting forth the reasonable expectations of the City on the Closintg Date, regarding the amount and use of the proceeds of the Notes in acenrdence with Code Section 148. If required, the City will lhnit the yield on any "investment property" (as defined in Code Section 148Co)(2)) acquired with the proceeds of the Notes. ¢) Arbitrage Rebate. Unless the gross proceeds of the Notes are expended in accordance with one of the spending period exceptions set forth in Treas Reg. §1.148-7, the City will pay the amounts required by Code Section 148(0(2) to the United 8tares at the times required by Code Section 148(0(3) The City will