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ORDINANCE NO. 2010- 29 PAGE 5
<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 thereo£ 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 compliance 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 particulaxly 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 talce or cause to be talcen 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 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 those proceeds and, as applicable, of property financed wrth 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, but excluding
<br />qualified 501(c)(3) bonds as defined in Section 145 of the Code so designated), in an aggregate
<br />amount in excess of $30,000,000, and (ii) have not issued, do not reasonably anticipate issuing,
<br />and will not issue, tax-exempt obligations (including the Notes, but excluding obligations 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 $30,000,000, unless the Village first obtains a written opinion of
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