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ORDINANCE NO. 2003- PAGE 5
<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 taY 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 with such proceeds, a11
<br />in such manner and to the extent necessary to assure such exclusion of that interest under the
<br />Code.
<br />The Village hereby represents that the Outstanding Note (the Refunded Obligation)
<br />was designated or treated as a"qualified tax-exempt obligation" pursuant to Section 265(b)(3) of
<br />the Code. The Village hereby covenants that it will redeem the Refunded Obligation from
<br />proceeds of, and within 90 days after issuance of, the Notes, and represents that all other
<br />conditions are met for treating the Notes as "qualified tax-exempt obligations" and as not to be
<br />taken into account under subparagraph (D) of Section 265(b)(3) of the Code, without necessity for
<br />fiirther designation, by reason of subparagraph (D)(ii) of Section 265(b)(3) of the Code. Further
<br />the Village represents and covenants that, during any time or in any manner as might affect the
<br />status of the Notes as "qualified tax-exempt obligations", it has not formed or participated in the
<br />formation of, or benefitted from or availed itself of, any entity in order to avoid the purposes of
<br />subparagraph (C) or (D) of Section 265(b)(3) of the Code, and will not form, participate in the
<br />formation of, or benefit from or avail itself of, any such entity. The Village further represents that
<br />the Notes are not being issued as part of a direct or indirect composite issue that combines issues
<br />or lots of tax-exempt obligations of different issuers.
<br />The Director of Finance, as the fiscal officer, or any other officer of the Village having
<br />responsibility for issuance of the Notes is hereby authorized (a) to make or effect any election,
<br />selection, designation, choice, consent, approval, or waiver on behalf of the Village with respect to
<br />the Notes as the Village is permitted or required to make or give under the federal income tax
<br />laws, including, without limitation thereto, any of the elections provided for in Section
<br />148(f)(4)(C) of the Code or available under Section 148 of the Code, for the purpose of assuring,
<br />enhancing or protecting favorable tax treatment or status of the Notes or interest thereon or
<br />assisting compliance with requirements for that purpose, reducing the burden or expense of such
<br />compliance, reducing the rebate amount or payments of penalties, or making payments of special
<br />amounts in lieu of making computations to determine, or paying, excess earnings as rebate, or
<br />obviating those amounts or payments, as determined by that officer, which action shall be in
<br />writing and signed by the officer, (b) to take any and all other actions, make or obtain calculations,
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