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ORDINANCE NO. 95-12 PAGE 3
<br />Notes. The tax shall be within the ten-mill limitation imposed by law, shall be and is ordered
<br />computed, certified, levied and extended upon the tax duplicate and collected by the same
<br />officers, in the same manner, and at the same time that taxes for general purposes for each of
<br />those years are certified, levied, extended and collected, and shall be placed before and in
<br />preference to all other items and for the full amount thereof. The proceeds of the tax levy shall
<br />be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment of the
<br />debt charges on the Notes or the Bonds when and as the same fall due.
<br />Section 10. The Village covenants that it will use, and will restrict the use and
<br />investment of, the proceeds of the Notes in such manner and to such extent as may be necessary
<br />so that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge
<br />bonds under Sections 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the
<br />Code), or (ii) be treated other than as bonds to which Section 103 (a) of the Code applies, and
<br />(b) the interest on the Notes will not be treated as a preference item under Section 57 of the
<br />Code.
<br />The Village further covenants that (a) it will take or cause to be taken such actions
<br />that may be required of it for the interest on the Notes to be and remain excluded from gross
<br />income for federal income tax purposes, and (b) it will not take or authorize to be taken any
<br />actions that would adversely affect that exclusion, and (c) it, or persons acting for it, will,
<br />among other acts of compliance, (i) apply the proceeds of the Notes to the governmental
<br />purpose of the borrowing, (ii) restrict the yield on investment property, (iii) make timely and
<br />adequate payments to the federal government, (iv) maintain books and records and make
<br />calculations and reports, and (v) refrain from certain uses of those proceeds and, as applicable,
<br />of property financed with such proceeds, all in such manner and to the extent necessary to
<br />assure such exclusion of that interest under the Code.
<br />The Notes are hereby designated as "qualified tax-exempt obligations" for purposes
<br />of Section 265(b)(3) of the Code. In that connection, the Village hereby represents and
<br />covenants that it, together with all its subordinate entities or entities that issue obligations on
<br />its behalf, or on behalf of which it issues obligations, in or during the calendar year in which
<br />the Notes are issued, (i) have not issued and will not issue tax-exempt obligations designated
<br />as "qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Code, including
<br />the Notes, in an aggregate amount in excess of $10,000,000, and (ii) have not issued, do not
<br />reasonably anticipate issuing, and will not issue, tax-exempt obligations (including the Notes,
<br />but excluding obligations, other than qualified 501(c)(3) bonds as defined in Section 145 of the
<br />Code, that are private activity bonds as defined in Section 141 of the Code and excluding
<br />refunding obligations that are not advance refunding obligations as defined in Section 149(d)(5)
<br />of the Code) in an aggregate amount exceeding $10,000,000, unless the Village first obtains a
<br />written opinion of nationally recognized bond counsel that such designation or issuance, as
<br />applicable, will not adversely affect the status of the Notes as "qualified tax-exempt obligations"
<br />Further, the Village represents and covenants that, during any time or in any manner as might
<br />affect the status of the Notes as "qualified tax-exempt obligations", it has not formed or
<br />participated in the formation of, or benefited from or availed itself of, any entity in order to
<br />avoid the purposes of subparagraph (C) or (D) of Section 265(b)(3) of the Code, and will not
<br />form, participate in the formation of, or benefit from or avail itself of, any such entity. The
<br />Village further represents that the Notes are not being issued as part of a direct or indirect
<br />composite issue that combines issues or lots of tax-exempt obligations of different issuers.
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