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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
<br />would have been levied if the Bonds had been issued without the prior issuance of the Notes.
<br />The tax shall be within the ten -mill limitation imposed by law, shall be and is ordered computed,
<br />certified, levied and extended upon the tax duplicate and collected by the same officers, in the
<br />same manner, and at the same time that taxes for general purposes for each of those years are
<br />certified, levied, extended and collected, and shall be placed before and in preference to all other
<br />items and for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond
<br />Retirement Fund, which is irrevocably pledged for the payment of the principal of and interest on
<br />the Notes or the Bonds when and as the 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 acting 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 />the City, together with all its subordinate entities or entities that issue obligations on its behalf, or
<br />on behalf of which the City issues obligations, in or during the calendar year in which the Notes
<br />are 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
<br />obligations, other than qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are
<br />private activity bonds as defined in Section 141 of the Code and excluding refunding obligations
<br />that are not advance refunding obligations as defined in Section 149(d)(5) of the Code) in an
<br />aggregate amount exceeding $10,000,000, unless the City first obtains a written opinion of
<br />nationally recognized bond counsel that such designation or issuance, as applicable, will not
<br />adversely affect the status of the Notes as "qualified tax exempt obligations ". Further, the City
<br />represents and covenants that, during any time or in any manner as might affect the status of the
<br />Notes as "qualified tax - exempt obligations ", it has not formed or participated in the formation of,
<br />or benefited from or availed itself of, any entity in order to avoid the purposes of subparagraph
<br />(C) or (D) of Section 265(b)(3) of the Code, and will not form, participate in the formation of, or
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