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<br />prepare and submit those applications, provide to each such agency or company such information
<br />as may be required for the purpose, and provide further for the payment of the cost of obtaining
<br />each such rating or policy, except to the extent paid by the Original Purchaser in accordance
<br />with the Purchase Agreement, from the proceeds of the Bonds to the extent available and
<br />otherwise from any other funds lawfully available and that are appropriated or shall be
<br />appropriated for that purpose.
<br />The expenditure of the amounts necessary to secure those ratings and to pay the
<br />other financing costs (as defined in Section 133.01 of the Revised Code) in connection with the
<br />Bonds is authorized and approved.
<br />Section 7. Provisions for Tax Lew. There shall be levied on all the taxable
<br />property in the City, in addition to all other taxes, a direct tax annually during the period the
<br />Bonds are outstanding in an amount sufficient to pay the debt charges on the Bonds when due,
<br />which tax shall not be less than the interest and sinking fund tax required by Section 11 of
<br />Article XII of the Ohio Constitution. The tax shall be within the 11.1-mill limitation imposed
<br />by the Charter of the City, shall be and is ordered computed, certified, levied and extended upon
<br />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 lery 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
<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 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 Ciry
<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 Ciry 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, enhancing 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 />- 15 -
<br />D03:[00523.DOCS.NOR05228]BONDORDINANCE FIRE STATION $3 440.
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