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<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 Note shall, to the extent necessary, be used to pay the debt charges on
<br />the Note at maturity and are pledged for that purpose.
<br />Section 9. During the year or years in which the Note is out-
<br />standing, there shall be levied on all the taxable property in the City, in
<br />addition t.o all other taxes, the same tax that would have been levied if the
<br />Bonds had been issued without the prior issuance of the Note. 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 />diiplicat.e 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 certi-
<br />fied, 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 debt charges on the Note or the
<br />Bonds when and as the same fall due.
<br />Section 10. The City covenants that it will use, and will restrict
<br />the use and investment of, the proceeds of the Note in such manner and to such
<br />extent as may be necessary so that (a) the Note will not (i) constitute a
<br />private activity bond, arbitrage bond or hedge bond under Section 141, 148 or
<br />149 of the Internal Revenue Code of 1986, as amended (the Code), or (ii) be
<br />treated other than as a bond to which Section 103(a) of the Code applies, and
<br />(b) the .interest on the Note will not be treated as a preference item under
<br />Section 57 of the Code.
<br />The City further covenants t:hat (a) it will take or cause to be taken
<br />such actions that may be required of it for the interest on the Note to be and
<br />remain excluded from gross income for federal income tax purposes, (b) it will
<br />not take or authorize to be taken any actions that would adversely affect that
<br />exclusion, and (c) it, or persons acting for it, will, among other acts of
<br />compliance, (i) apply the proceeds of the Note to the governmental purpose of
<br />the borrowing, (ii) restrict the yield on investment property, (iii) make
<br />timely and adequate payments to the federal government, (iv) maintain books
<br />and records and make calculations and reports, and (v) refrain from certain
<br />uses of those proceeds and, as applicable, of property financed with such
<br />proceeds, all in such manner and to the extent necessary to assure such
<br />exclusion of that interest under the Code.
<br />The Director of Finance, as the fiscal officer, or any other officer
<br />of the City having responsibility for issuance of the Note is hereby autho-
<br />rized (a) to make or effect any election, selection, designation, choice,
<br />consent, approval, or waiver on behalf of the City with respect to the Note as
<br />the City is permitted or required to make or give under the federal income tax
<br />laws, including, without limitation, any of the elections provided for in
<br />Section 148(f)(4)(C) of the Code or available under Section 148 of the Code,
<br />for the purpose of assuring, enhancing or protecting favorable tax treatment
<br />or status of the Note or interest thereon or assisting compliance with
<br />requirements for that purpose, reducing the burden or expense of su<~h
<br />compliance, reducing the rebate amount or payments or penalties, or making
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