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<br />(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
<br />acts of compliance, (i) appiy the proceeds of the Bonds to the governmental
<br />purpose of the borrowing, (ii) restrict the yield on investment property
<br />acquired with those proceeds, (iii) make timely and adequate payments to the
<br />federal government, (iv) maintain books and records and make calculations and
<br />reports, and (v) refrain from certain uses of those proceeds, and, as
<br />applicable, of property financed with such proceeds, all in such manner and to
<br />the extent necessary to assure such 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 Bonds is hereby
<br />authorized (a) to make or effect any election, selection, designation, choice,
<br />consent, approval, or waiver on behalf of the City with respect to the Bonds
<br />as the City is permitted or required to make or give under the federal income
<br />tax laws, for the purpose of assuring, enhancing or protecting favorable tax
<br />treatment or status of the Bonds or interest thereon or assisting compliance
<br />witli requirements for that purpose, reducing the burden or expense of such
<br />compliance, reducing the rebate amount or payments or penalties, or making
<br />payments of special amounts in lieu of making computations to determine, or
<br />paying, excess earnings as rebate, or obviating those amounts or payments, as
<br />determined by that officer, which action shall be in writing and signed by the
<br />officer, (b) to take any and all other actions, make or obtain calculations,
<br />make payments, and make or give reports, covenants and certifications of and
<br />on behalf of the City, as may be appropriate to assure the exclusion of
<br />interest from gross income and the intended tax status of the Bonds, and (c)
<br />to give one or more appropriate certificates of the City, for inclusion in ttie
<br />transcript of proceedings for the Bonds, setting forth the reasonable expecta-
<br />tions of the City regarding the amount and use of all the proceeds of the
<br />Bonds, the facts, circumstances and estimates on which they are based, and
<br />other facts and circumstances relevant to the tax treatment of the interest on
<br />and the tax status of the Bonds.
<br />Each covenant made in this section with respect to the Bonds is also
<br />made with respect to all issues any portion of the debt service on which is
<br />paid from proceeds of the Bonds (and, if different, the original issiie and any
<br />refunding issues in a series of refundings), to the extent such compliance is
<br />necessary to assure exclusion of interest on the Bonds from gross income for
<br />federal income tax purposes, and the officers identified above are authorized
<br />to take acti.ons with respect to those issues as they are authorized in thl.s
<br />section to take with respect to the Bonds.
<br />The City hereby represents that the 1990 Notes are treated as
<br />"qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code.
<br />The City hereby covenants that it will redeem the 1990 Notes from proceeds of,
<br />and within 90 days after issuance of, the Bonds, and represents that all other
<br />conditions ar.e met. for treating the Bonds as "qualified tax-exempt obliga-
<br />tions" and as not to be talcen into account under subparagraph (D) of Secta.on
<br />265(b)(3) of the Code, without necessity for further designation, by reason
<br />of subparagraph (D)(ii) of Section 265(b)(3) of the Code. Further, the City
<br />represents and covenants that, during any time or in any manner as might
<br />affect the status of the Bonds as "qualified tax-exempt obligations", it has
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