|
<br />Section 9. During the year or years in which the Notes are outstanding, there sha11 be levied
<br />on a11 the taxable property in the City, in addition to a11 other taxes, the same tax that would have
<br />been levied if the Bonds had been issued without the prior issuance of the Notes. The taac shall be
<br />within the 11.1-mill limitation provided by the Charter of the City, sha11 be and is ordered
<br />computed, certified, levied and extended upon the tax duplicate and collected by the same officers,
<br />in the 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 a11 other
<br />items and for the full amouirt the,reof. The proceeds of the tax levy shall be placed in the Bond
<br />Retiremetrt Fund, which is irrevocably pledged for the paymerrt of the debt charges an the Notes or
<br />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 investmern ot
<br />the proceeds of the Notes in such manner and to such extent as may be necessary so that (a) the
<br />Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds under Section
<br />141, 148 or 149 of the Intemal Revenue Code of 1986, as amended (the Code), or (ii) be treated
<br />other than as bonds to which Section 143(a) of the Code applies, and (b) the interest on the Notes
<br />will not be an item af tax preference under Sectian 57 of the Code.
<br />The City further covenants that (a) it will take or cause to be taken such actions that may be
<br />required of it for the imerest on the Notes to be and remain excluded from gross income for federal
<br />income tax purposes, (b) it will not take or authorize to be taken any actions that would adversely
<br />affect that exclusion, and (c) it, or persons acting for it, will, among other acts of compliance, (i)
<br />apply the proceeds of the Notes to the gavernmetrtal pwposes of the borrowing, (ii) restrict the yield
<br />on investment property, (iii) make timely and adequate payments to the federal govemmeYrt, (iv)
<br />maintain books and records and make calculations and reports, and (v) refrain from certain uses of
<br />those proceeds and, as applicable, of property financed with such proceeds, all in such manner and
<br />to the extern necessary to asswe such exclusion of that interest 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 covenairts that it,
<br />together with all its subordinate eirtities or errtities that issue obligations on its behalf, or on behalf of
<br />which the City issues obligations, in or during the calendar year in which the Notes aze issued, (i)
<br />has not issued and will not issue tax-exempt obligations designated as "qualified tax-exempt
<br />obligations" for purposes of Section 265(bx3) of the Code, including the Notes, in an aggregate
<br />arnount in excess of $10,000,000, and (ii) has not issued, does not reasonably anticipate issuing, and
<br />will not issue tax-exempt obligations (including the Notes, hut excluding obligations, other than
<br />qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are private activity bonds as
<br />defined in Section 141 of the Code and excluding refunding obligations that are not advance
<br />refunding obligations as defined in Section 149(dx5) of the Code) in an aggregate amount
<br />exceeding $10,000,000, unless the City first obtains a written opinion of nationally recognized bond
<br />counsel that such designation or issuance, as applicable, will not adversely affect the status of the
<br />Notes as "qualified tax-exempt obligations". Further, the City covenants that, during any tirne or in
<br />any manner as might affect the status of the Notes as "qualified tax-exempt obligations", it has not
<br />formed or participated in the formation ot or benefitted from or availed rtself o? any entity in order
<br />to 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 ot any such etrtity. The City
<br />-5-
<br />,«?9..??z?.??
|