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<br />the Notes shall, to t.he extent necessary, be used to pay the debt charges on
<br />the Notes at maturity and are pledged for that purpose.
<br />Sect.ion 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 wouid 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 dupli-
<br />cate and collected by the same officers, in the same manner, and at the same
<br />time that taxes for general purposes for each of those years are certified,
<br />levied, extended and collected, and shall be placed before and in preference
<br />to all other items and for the full amount thereof. The proceeds of the tax
<br />levy shall be placed in the Bond Retirement Fund, which is irrevocably pledged
<br />for the payment of the debt charges on the Notes or the Bonds when and as the
<br />same fall due. In each year to the extent the income from the City's recrea-
<br />tional facilities or from the levy of a tax for municipal recreational pur-
<br />poses pursuant to Article VIII, Section 8(d) of the Charter of the City is
<br />available for tl?e payment of debt charges on the Notes and Bonds and is appro-
<br />priated for that purpose, the amount of the tax shall be reduced by the amount
<br />of income so available and appropriated.
<br />Section 10. The City covenants that it will use, and will restrict
<br />the use and investment of, the proceeds of the Notes in such manner and to
<br />such extent as may be necessary so that (a) the Notes will not (i) constitute
<br />private activity bonds, arbitrage bonds or hedge bonds under Section 141, 148
<br />or 149 of t.he Internal Revenue Code of 1986, as amended (the Code), or (ii) be
<br />treated othPr than as bonds to which Section 103(a) of the Code applies, and
<br />(b) the interest on the Notes will not be treated as a preference item under
<br />Section 57 of the Code.
<br />The City further covenants (a) that it will take or cause to be taken
<br />such actions that may be required of it for the interest on the Notes to be
<br />and remain excluded from gross income for federal income tax purposes, (b)
<br />that it will not take or authorize to be taken any actions that would adverse-
<br />ly affect that exclusion, and (c) that it, or persons acting for it, will,
<br />among other acts of compliance, (i) apply the proceeds of the Notes to the
<br />governmental purposes of the borrowing, (ii) restrict the yield on investment
<br />property, (iii) make timely and adequate 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 and, as applicabie, of property
<br />financed with such proceeds, all in such manner and to the extent necessary to
<br />assure sucti 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 Notes 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 Notes
<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 Notes or interest thereon or assisting compliance
<br />with reyuirements for that purpose, reducing the burden or expense of such
<br />campliance, reducing the rebate amount or payments of penalties, or making
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