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Section 9. During the year or years in which the Notes are outstanding, there shall be
<br />levied on all the taxable property in the City, in addition to all other taxes, the same tax that would
<br />have been levied if the Bonds had been issued without the prior issuance of the Notes. The tax shall
<br />be within the ten-mill limitation imposed by law, shall be and is ordered computed, certified, levied
<br />and 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 for each of those years are certified, levied, extended
<br />and collected, and shall be placed before and in preference to .all other items and for the full amount
<br />thereof. The proceeds of the tax levy shall be placed in the Bond Retirement Fund, which is
<br />irrevocably pledged for the payment of the debt charges on the Notes or the Bonds when and as the
<br />same fall due.
<br />Section 10. The City covenants that it will use; and will restrict the use and investment
<br />of, the proceeds of the Notes in such manner and to such extent as may be necessary so that (a)
<br />the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under
<br />'Sections 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code) or (ii) be
<br />treated other than as bonds to which Section 103(a) of the Code applies; and (b) the interest on
<br />the Notes will not be treated as an item 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
<br />be required of it for the interest on the Notes to be and 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 acfing for it, will, among other acts of
<br />compliance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing,
<br />(ii) restrict the yield on investment property, (iii) make timely and adequate payments to the
<br />federal government, (iv) maintain books and records and make calculations and reports and (v)
<br />refrain from certain uses of those proceeds, 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 Notes are hereby designated as "qualified tax-exempt obligations" for purposes of
<br />Section 265(b)(3) of the Code. In that connection, the City hereby represents and covenants that
<br />City; together with all its subordinate entities or entities that issue obligations on its behalf, or on
<br />behalf of which the City issues obligations, in or during the calendar year in which the Notes are
<br />issued, (i) have not issued and will not issue tax-exempt obligations designated as "qualified
<br />tax-exempt obligations" for purposes of Section 265(b)(3) of the Code, including the Notes, in an
<br />aggregate amount in excess of $10,000,000, and (ii) have not issued, do not reasonably anticipate
<br />issuing, and will not issue, tax-exempt obligations (including the Notes, but excluding obligations,
<br />other than qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are private activity
<br />bonds as defined in Section 141 of the Code and. excluding refunding obligations that are not
<br />advance refunding obligations as defined in Section 149(d)(5) of the Code) in an aggregate amount
<br />exceeding $10,000,000, unless the City first obtains a written opinion of nationally recognized bond
<br />counsel that such designation or issuance, as applicable, will not adversely affect the status ofthe
<br />Notes as "qualified tax-exempt obligations". Further, the City represents and covenants that, during
<br />any time or in any manner as might affect the status of the Notes as "qualified tax-exempt
<br />obligations", it has not formed or participated in the formation of, or benefited from or availed itself
<br />of, any entity in order to avoid. the purposes. of subparagraph (C) or (D) of Section 265(b)(3) of the
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