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levied, extended and collected, and shall be placed before and in preference to all other items and
<br />for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond Retirement
<br />Fund, which is irrevocably pledged for the payment of the debt charges on the Bonds when and as
<br />the same fall due.
<br />In each year to the extent money from the municipal income tax is available for the payment
<br />of debt charges on the Bonds and is appropriated for that purpose, the amount of the tax shall be
<br />reduced by the amount of the money so available and appropriated in compliance with the following
<br />covenant. To the extent necessary, the debt charges on the Bonds shall be paid from municipal
<br />income taxes lawfully available therefor under the Constitution and the laws of the State of Ohio
<br />and the Charter of the City; and the City hereby covenants, subject and pursuant to such authority,
<br />including particularly Section 133.05(B)(7), Revised Code, to appropriate annually from such
<br />municipal income taxes such amount as is necessary to meet such annual debt charges. Nothing in
<br />this paragraph in any way diminishes the pledge of the full faith and credit and property taxying
<br />power of the City to the prompt payment on the Bonds.
<br />Section 8. Federal Tax Considerations. This Council covenants that it will use, and will
<br />restrict the use and investment of, the proceeds of the Bonds in such manner and to such extent as
<br />may be necessary so that (a) the Bonds will not (i) constitute private activity bonds, arbitrage bonds
<br />or hedge bonds under Section 141, 148 or 149 of the Code, or (ii) be treated other than as bonds to
<br />which Section 103(a) of the Code applies, and (b) the interest thereon will not be treated as an item
<br />of tax preference under Section 57 of the Code.
<br />The City further covenants that (a) it will take or cause to be taken such actions that may be
<br />required of it for the interest on the Bonds. to be and to remain excluded from gross income for
<br />federal income tax purposes, (b) it will not take or authorize to be taken any actions that would
<br />adversely affect that exclusion, and (c) it, or persons acting for it, will, among other acts of
<br />compliance, (i) apply the proceeds of the Bonds to the governmental purposes of the borrowing, (ii)
<br />restrict the yield on investment property, (iii) make timely and adequate payments to the federal
<br />government, (iv) maintain books and records and make calculations and reports, and (v) refrain
<br />from certain uses of the proceeds of the Bonds and, as applicable; of property financed with such
<br />proceeds, all in such manner and to the extent necessary to assure such exclusion of that interest
<br />under the Code.
<br />The Director of Finance, as the fiscal officer, or any other officer of the City having
<br />responsibility for issuance of the Bonds is hereby authorized (a) to make or effect any election,
<br />selection, designation, choice, consent, approval, or waiver on behalf of the City with respect to the
<br />Bonds as the City is permitted or required to make or give under the federal income tax laws,
<br />including, without limitation thereto, any of the elections provided for in Section 148(f)(4)(C) of the
<br />Code or available under Section 148 of the Code, for the purpose of assuring, enhancing or
<br />protecting favorable tax treatment or status of the Bonds or interest thereon or assisting compliance
<br />with requirements for that purpose, reducing the burden or expense of such compliance, reducing
<br />the rebate amount or payments or penalties, or making payments of special amounts in lieu of
<br />making computations to determine, or paying, excess earnings as rebate, or obviating those amounts
<br />or payments, as determined by that officer, which action shall be in writing and signed by the
<br />officer, (b) to take any and all other actions, make or obtain calculations, make payments, and make
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