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<br />irrevocably pledged for the payment of the debt charges on the Bonds when and as the same fall
<br />due.
<br />Section 8. Federal Tax Considerations. The City covenants that it will use, and
<br />will restrict the use and investment of, the proceeds of the Bonds in such manner and to such
<br />extent as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds,
<br />arbitrage bonds or hedge bonds under Sections 141, 148 or 149 of the Code or (ii) be treated
<br />other than as bonds to which Section 103 of the Code applies, and (b) the interest thereon will
<br />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
<br />that may be required of it for the interest on the Bonds to be and to remain excluded from gross
<br />income for federal income tax purposes, and (b) it will not take or authorize to be taken any
<br />actions that would adversely affect that exclusion, and (c) it, or persons acting for it, will,
<br />among other acts of compliance, (i) apply the proceeds of the Bonds to the governmental
<br />purpose of the borrowing, (ii) restrict the yield on investment property acquired with those
<br />proceeds, (iii) make timely and adequate payments to the federal government, (iv) maintain
<br />books and records and make calculations and reports, and (v) refrain from certain uses of those
<br />proceeds, and, as applicable, of property financed with such proceeds, all in such manner and
<br />to 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 of the City
<br />having responsibility for issuance of the Bonds is hereby authorized (a) to make or effect any
<br />election, selection, designation, choice, consent, approval, or waiver on behalf of the City with
<br />respect to the Bonds as the City is permitted or required to make or give under the federal
<br />income tax laws, including, without limitation, any of the elections available under Section 148
<br />of the Code, for the purpose of assuring, enhancmg or protecting favorable tax treatment or
<br />status of the Bonds or interest thereon or assisting compliance with requirements for that
<br />purpose, reducing the burden or expense of such compliance, reducing the rebate amount or
<br />payments or penalties, or making payments of special amounts in lieu of making computations
<br />to determine, or 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 officer, (b) to take
<br />any and all other actions, make or obtain calculations, make payments, and make or give
<br />reports, covenants and certifications of and on behalf of the City, as may be appropriate to
<br />assure the exclusion of interest from gross income and the intended tax status of the Bonds, and
<br />(c) to give one or more appropriate certificates of the City, for inclusion in the transcript of
<br />proceedings for the Bonds, setting forth the reasonable expectations of the City regarding the
<br />amount and use of all the proceeds of the Bonds, the facts, circumstances and estimates on which
<br />they are based, and other facts and circumstances relevant to the tax treatment or status of the
<br />Bonds and interest thereon.
<br />Each covenant made in this Section with respect to the Bonds is also made with
<br />respect to all issues any portion of the debt service on which is paid from proceeds of the Bonds
<br />(and, if different, the original issue and any refunding issues in a series of refundings), to the
<br />extent such compliance is necessary to assure exclusion of interest on the Bonds from gross
<br />income for federal income tax purposes, and the officers identified above are authorized to take
<br />actions with respect to those issues as they are authorized in this Section to take with respect to
<br />the Bonds.
<br />Section 9. Certification and De]
<br />The Clerk of Council is directed to deliver pro
<br />signed copy of the Certificate of Award to the
<br />available.
<br />a certified copy of this ordinance and a
<br />ioga County Auditor as soon as each is
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<br />D03: [00523. DOCS. NOR05228]BOND_ORDINANCE_NM_POL_STAT_$205.
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