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will have made a written declaration of the City's official intent (a "Declaration") which <br />effectively (i) states the City's reasonable expectation to'reimburse itself for the payment <br />of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) <br />gives a general and functional description of the property, project or program to which <br />the Declaration relates and for which the Reimbursement Expenditure is paid, or <br />identifies a specific fund or account of the City and the general functional purpose thereof <br />from which the Reimbursement Expenditure was to be paid (collectively the "Project"); <br />and (iii) states the maximum principal amount of debt expected to be issued by the City <br />for the purpose of financing the Project; provided, however, that no such Declaration <br />shall necessarily have been made with respect to: (i) "preliminary expenditures" for the <br />Project, defined in the Reimbursement Regulations to include engineering or <br />architectural, surveying and soil testing expenses and similar prefatory costs, which in the <br />aggregate do not exceed 20% of the "issue price" of the Certificates, and (ii) a de minimis <br />amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or 5% of <br />the proceeds of the Certificates. <br /> <br /> (b) Each Reimbursement Expenditure is a capital expenditure or a cost of <br />issuance of the Certificates or any of the other types of expenditures described in Section <br />1.150-2(d)(3) of the Reimbursement Regulations. <br /> <br /> (c) The "reimbursement allocation" described in the Reimbursement <br />Regulations for each Reimbursement Expenditure shall and will be made forthwith <br />following (but not prior to) the issuance of the Certificates and in all events within the <br />period ending on the date which is the later of 18 months after payment of the <br />Reimbursement Expenditure or one year after the date on which the Project to which the <br />Reimbursement Expenditure relates is first placed in service, but not more than three <br />years after the date of the Reimbursement Expenditure.. <br /> <br /> (d) Each such reimbursement allocation will be made in a writing that <br />evidences the City's use of Certificate proceeds to reimburse the Reimbursement <br />Expenditure and, if made within 30 days after the Certificates are issued, shall be treated <br />as made on the day the Certificates are issued. <br /> <br />Provided, however, that the City may take action contrary to any of the foregoing covenants in <br />this paragraph 18 upon receipt of an opinion of its Bond Counsel for the Certificates stating in <br />effect that such action will not impair the tax-exempt status of the Certificates. <br /> <br /> 19. General Obligation Pledge. For the prompt and full payment of the <br />principal and interest on the Certificates,. as the same respectively become due, the full faith, <br />credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance <br />in the Debt Service Account is ever insufficient to pay all principal and interest then due on the <br />Certificates and any other certificates payable therefrom, the deficiency shall be promptly paid <br />out of any other funds of the City which are available for such purpose, and such other funds <br />may be reimbursed with or without interest from the Debt Service Account when a sufficient <br />balance is available therein. <br /> <br />1479134vl 16 <br /> <br /> <br />