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the tax duplicate and collected by the same officers, in the same manner and at the same time
<br />that taxes for general purposes for each of those years are certified, levied, extended and
<br />collected, and shall be placed before and in preference to all other items and for the full amount
<br />thereof. The proceeds 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 Bonds when and as the same fall
<br />due.
<br />Section 8. Federal Tax Considerations. The City covenants that it will use, and will
<br />restrict the use and investment of, the proceeds of the Bonds in such manner and to such extent
<br />as may be necessary so that (a) the Bonds will not (i) constitute private activity bonds, arbitrage
<br />bonds or hedge bonds under Sections 141, 148 or 149 of the Code or (ii) be treated other than
<br />as bonds to which Section 103 of the Code applies, and (b) the interest thereon will not be an
<br />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 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 govemmental
<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 having
<br />responsibility for issuance of the Bonds is hereby authorized (a) to make or effect any election,
<br />selection, designation, choice, consent, approval, or waiver on behalf of the City with respect
<br />to the Bonds as the City is permitted or required to make or give under the federal income tax
<br />laws, including, without limitation, any of the elections available under Section 148 of the Code,
<br />for the purpose of assuring, enhancing or protecting favorable tax treatment or status of the
<br />Bonds or interest thereon or assisting compliance with requirements for that purpose, reducing
<br />the burden or expense of such compliance, reducing the rebate amount or payments or penalties,
<br />or making payments of special amounts in lieu of making computations to determine, or paying,
<br />excess earnings as rebate, or obviating those amounts or payments, as determined by that
<br />officer, which action shall be in writing and signed by the officer, (b) to take any and all other
<br />actions, make or obtain calculations, make payments, and make or give reports, covenants and
<br />certifications of and 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) to give one or more
<br />appropriate certificates of the City, for inclusion in the transcript of proceedings for the Bonds,
<br />setting forth the reasonable expectations of the City regarding the amount and use of all the
<br />proceeds of the Bonds, the facts, circumstances and estimates on which they are based, and other
<br />facts and circumstances relevant to the tax treatment or status of the 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 />-12-
<br />D03:[00523.DOCS.NOR05228]BOND_ORDINANCE_FIRE_TRUCK $770.
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