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- 3 - the Notes are being issued. Any portion of those proceeds representing pre- mium and accrued interest shall be paid into the Bond Retirement Fund. Section 8. The ua.r value to be received from the sale of the Bonds or of. any renewal notes aril] any excess funds resulting from the issuance of the Notes shall, to the extent necessary, be used to pay the principal of and interest on the Notes at maturity and are pledged for that purpose. Section 9. During the year or years in which the Notes are out- standing, there shall be levied on all the taxable property in the City, in addition to all other taxes, the same tax that would have been levied if the Bonds had been issued without the prior issuance of the Notes. The tax shall be within the 11.1-mill limitation provided by the Charter of the City, shall. be and is ordered computed, certified, levied and extended upon the tax dupli- cate and collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of those years are certified, levied, extended and collected, and shall be placed before and i.n preference to aJ.l other items and for the full amount thereof. The proceeds of the tax levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment of. the principal of and interest on the Notes or the Bonds when and as the same fall due. Ser_tion 10. The City covenant;s that. it will restrict the u.se of the proceeds of the Notes in such manner ,and to such extent; .if. any, as may be necessary so that. the Notes wiJ.l not constitute arbitrage bonds under Section 148 of the internal Revenue Code of 1.986, as amended (the Code). The Director of I'inaxice, as the fisc:a:l officer, or any other officer of the City having responsibility for the issuance of the Notes shall give an appropriate certif- icate of the City, for inr.lusion in the transcript. of proceedings for the Notes, setting forth the reasonable expectations of the City regarding the amount and use of all the proceeds of the Notes, the facts, circumstances and estimates on which they are based, and other facts and circumst.arces relevant to the tax treatment of the interest on the Notes. The City covenants that it (a) will take or cause to be taken such actions that may be .required of it for the interest on the Notes to be and remain excluded from gross income for federal income t,ax purposes, and (b) will not take or authorize to be taken any actions that would adversely affect that exclusion, and that it, or persons acting for it, will, among other acts of compliance, (i) apply the proceeds of the Notes to the governmental purpose of the borrowing, (ii.) restrict the yield on investment property acquired with those proceeds, (iii) make timely rebate payments to the federal government, (iv) maintain books and records and make calculations and reports, and (v) .refrain from certain uses of those proceeds, all in such manner and to the extent- necessary to assure such exclusion of that interest under the Code. The Director of Finance and other appropriate officers are authorized and directed to take any anal all actions, make oal.culations and rebate payments, and make or give repor.-ts and certifications, as may be appropriate to assure such exclusion of that. interest. The City represents that the 1988 Notes were designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code. The City covenants that it will redeem the .1938 Notes from proceeds of, and within 90