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ORDINANCE NO. 2006- 27
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<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. In- each year the amount
<br />of such property tax shall be reduced by the amount of lawfully available municipal income
<br />taxes appropriated and to be applied to the payment of the debt charges on the Notes or Bonds
<br />in compiiance with the following covenant. To the extent necessary, the debt charges on the
<br />Notes or Bonds shall be paid from municipal income taxes lawfully available therefor under the
<br />Constitution and laws of the State of Ohio; and the Village hereby covenants, subject and
<br />pursuant to such authority, including particularly Sections 133.05(B)(7) and 5705:51(A)(5) and
<br />(D), Revised Code, to appropriate annually from such municipal income taxes such amounts,
<br />and to continue to levy and collect such municipal income, taxes in such amounts, as are
<br />necessary to meet such annual debt charges. Nothing in this section in any way diminishes the
<br />irrevocable pledge of the full faith and credit and general property taxing power of the Village
<br />to the prompt payment of the debt charges on the Notes or Bonds. :
<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 so
<br />that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds
<br />under Sections 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code), or
<br />(ii) be treated other than as bonds to which Section 103(a) of the Code applies; and (b) the interest
<br />on the Notes will not be treated as a preference item under Section 57 of the Code.
<br />The Village further covenants that (a) it will take or cause to be taken such actions that
<br />may be required of it for the interest on the Notes to be and remain excluded from gross income
<br />for federal income tax purposes, and (b) it will not take or authorize to be taken any actions.that
<br />would 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, (ii)
<br />restrict the }neld on mvestment 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 those proceeds and, as applicable, of property financed with such proceeds, all
<br />in such manner and to the extent necessary to assure such exclusion of that interest under the
<br />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 Village hereby represents and covenants
<br />that it, together with all its subordinate entities or entities that issue obligations on its behalf, or on
<br />behalf of which it issues obligations, in or during the calendar year in which the Notes are issued,
<br />(i) have not issued and will not issue tax-exempt obligations designated as "qualified tax-exempt
<br />obligations" for purposes of Section 265(b)(3) of the Code, including the Notes, in an aggregate
<br />amount in excess of $10,000,000, and (ii) have not issued, do not reasonably anticipate issumg,
<br />and will not issue, tax-exempt obligations (including the Notes, but excluding obligations, other
<br />than qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are pnvate 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
<br />amount exceeding $10,000;000, unless the Village first obtains a written opinion of nationally
<br />recognized bond counsel that such designation or issuance, as applicable, will not adversely affect
<br />the status of the Notes as "qualified tax-exempt obligations". Further, the Village represents and
<br />covenants that, during any time or in any manner as might affect. the status of the Notes as
<br />"qualified tax-exempt obligations", it has not formed or' participated in the formation of, or
<br />benefited from or availed itself of, any entity in order to avoid the purposes of subparagraph (C) or
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