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<br />necessary, be used to pay the debt charges on the Notes at maturity and are pledged for that
<br />purpose.
<br />Section 9. During the year or years in which the Notes are outstanding, there shall
<br />be levied on all the taxable property in the City, in addition to all other taxes, the same tax that
<br />would have been levied if the Bonds had been issued without the prior issuance of the Notes.
<br />The tax shall be within the 11.1-mill limitation provided by the Charter of the City, shall be and
<br />is ordered computed, certified, levied and extended upon the tax duplicate and collected by the
<br />same officers, in the same manner, and at the same time that taxes for general purposes for each
<br />of those years are 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 of the tax levy shall
<br />be placed in the Bond Retirement Fund, which is irrevocably pledged for the payment of the
<br />debt charges on the Notes or 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
<br />investment of, the proceeds of the Notes in such manner and to such extent as may be necessary
<br />so that (a) the Notes will not (i) constitute private activity bonds, arbitrage bonds or hedge bonds
<br />under Section 141, 148 or 149 of the Internal Revenue Code of 1986, as amended (the Code),
<br />or (ii) be treated other than as bonds to which Section 103(a) of the Code applies, and (b) the
<br />interest on the Notes will not be an item of tax preference under Section 57 of the Code.
<br />The City 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 tax purposes, (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
<br />of compliance, (i) apply the proceeds of the Notes to the governmental purposes of the
<br />borrowing, (ii) restrict the yield on investment property, (iii) make timely and adequate
<br />payments to the federal government, (iv) maintain books and records and make calculations and
<br />reports, and (v) refrain from certain uses of those proceeds and, as applicable, of property
<br />financed with such proceeds, all in such manner and to the extent necessary to assure such
<br />exclusion of that interest under the Code.
<br />The Notes are hereby designated as "qualified tax-exempt obligations" for purposes
<br />of Section 265(b)(3) of the Code. In that connection, the City hereby represents and covenants
<br />that it, together with all its subordinate entities or entities that issue obligations on its behalf, or
<br />on behalf of which it issues obligations, in or during the calendar year m which the Notes are
<br />issued, (i) have not issued and will not issue tax-exempt obligations designated as "qualified
<br />tax-exempt obligations" for purposes of Section 265(b)(3) of the Code, including the Notes, in
<br />an aggregate amount in excess of $10,000,000, and (ii) have not issued, do not reasonably
<br />anticipate issuing, and will not issue, tax-exempt obligations (including the Notes, but excluding
<br />obligations, other than qualified 501(c)(3) bonds as defined in Section 145 of the Code, that are
<br />private activity bonds as defined in Section 141 of the Code and excluding refunding obligations
<br />that are not advance refunding obligations as defined in Section 149(d)(5) of the Code) in an
<br />aggregate amount exceeding $10,000,000, unless the City first obtains a written opinion of
<br />nationally recognized bond counsel that such designation or issuance, as applicable, will not
<br />adversely affect the status of the Notes as "qualified tax-exempt obligations" . Further, the City
<br />represents and covenants that, during any tune or in any manner as might affect the status of the
<br />Notes as "qualified tax-exempt obligations", it has not formed or participated in the formation
<br />of, or benefited 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 City 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 City having
<br />responsibility for issuance of the Notes is hereby authorized (a) to make or effect any election,
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