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<br />?f.
<br />upon their faces the purpose for which they are issued and that they are
<br />issued pursuant to this ordinance.
<br />Section 6. The Notes are offered at par and accrued interest, if
<br />any, to the Director of Finance, as officer in charge of the Bond Retirement
<br />Fund of the City. Notes not purchased for the Bond Retirement Fund or for
<br />other funds of the City shall be sold at private sale by the Director of
<br />Finance in accordance with law and the provisions of this ordinance. The
<br />Director of Finance shall sign the certificate of award referred to in Section
<br />3 evidencing that sale, cause the Notes to be prepared, and have the Notes
<br />signed and delivered, together with a true transcript of proceedings with
<br />reference to the issuance of the Notes if requested by the original purchaser,
<br />to the original purchaser upon payment of the purchase price.
<br />Section 7. The proceeds from the sale of the Notes, except any
<br />premium and accrued interest, shall be paid into the proper fund or funds and
<br />those proceeds are appropriated and shall be used for the purpose for which
<br />the Notes are being issued. Any portion of those proceeds representing pre-
<br />mium and accrued interest shall be paid into the Bond Retirement Fund.
<br />Section 8. The par value to be received from the sale of the Bonds
<br />or of any renewal notes and any excess funds resulting from the issuance of
<br />the Notes shall, to the extent necessary, be used to pay the principal of and
<br />interest on the Notes at maturity and are pledged for that purpose.
<br />Section 9. During the year or years in which the Notes are out-
<br />standing, there shall be levied on all the taxable property in the City, in
<br />addition to all other taxes, the same tax that would have been levied if the
<br />Bonds had been issued without the prior issuance of the Notes. The tax shall
<br />be within the 11.1 mill limitation provided by the Charter of the City, shall
<br />be and is ordered computed, certified, levied and extended upon the tax
<br />duplicate and collected by the same officers, in the same manner, and at the
<br />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
<br />preference to all other items and for the full amount thereof. The proceeds
<br />of the tax levy shall be placed in the Bond Retirement Fund, which is
<br />irrevocably pledged for the payment of the principal of and interest on the
<br />Notes or the Bonds when and as the same fall due.
<br />Section 10. The City covenants that it will restrict the use of the
<br />proceeds of the Notes in such manner and to such extent, if any, as may be
<br />necessary so that the Notes will not constitute arbitrage bonds under Section
<br />148 of the Internal Revenue Code of 1986, as amended (the Code). The Director
<br />of Finance, as the fiscal officer, or any other officer of the City having
<br />responsibility for the issuance of the Notes shall give an appropriate
<br />certificate of the City, for inclusion in the transcript of proceedings for
<br />the Notes, setting forth the reasonable expectations of the City regarding the
<br />amount and use of all the proceeds of the Notes, the facts, circumstances and
<br />estimates on which they are based, and other facts and circumstances relevant
<br />to the tax treatment of the interest on the Notes.
<br />The City covenants that it (a) will take or cause to be taken such
<br />actions that may be required of it for the interest on the Notes to be and
<br />remain excluded from gross income for federal income tax purposes, and (b)
<br />will not take or authorize to be taken any actions that would adversely affect
<br />that exclusion, and that it, or persons acting for it, will, among other acts
<br />of compliance, (i) apply the proceeds of the Notes to the governmental purpose
<br />of the borrowing, (ii) restrict the yield on investment property acquired with
<br />those proceeds, (iii) make timely rebate payments to the federal government,
<br />(iv) maintain books and records and make calculations and reports, and (v)
<br />refrain from certain uses of those proceeds, all in such manner and to the
<br />extent necessary to assure such exclusion of that interest under the Code.
<br />The Director of Finance and other appropriate officers are authorized and
<br />directed to take any and all actions, make calculations and rebate payments,
<br />and make or give reports and certifications, as may be appropriate to assure
<br />such exclusion of that interest.
<br />?.?. ? . r.,,?. .. ? .. _ ,... ._ ? _._
<br />_ . ... ,. . .., r.,.?.?.w. . , . F ..... . ,.
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