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23. Tax - Exempt Status of the Certificates; Rebate. <br />The City shall comply with requirements necessary under the Code <br />to establish and maintain the exclusion from gross income under <br />Section 103 of the Code of the interest on the Certificates, <br />including without limitation (1) requirements relating to <br />temporary periods for investments, (2) limitations on amounts <br />invested at a yield greater than the yield on the Certificates, <br />and (3) the rebate of excess investment earnings to the United <br />States if the Certificates (together with other obligations <br />reasonably expected to be issued and outstanding at one time in <br />this calendar year) exceed the small- issuer exception amount of <br />$5,000,000. <br />For purposes of qualifying for the exception to the <br />federal arbitrage rebate requirements for governmental units <br />issuing $5,000,000 or less of bonds, the City hereby finds, <br />determines and declares that (1) the Certificates are issued by a <br />governmental unit with general taxing powers, (2) no Certificate <br />is a private activity bond, (3) ninety -five percent (950) or more <br />of the net proceeds of the Certificates are to be used for local <br />governmental activities of the City (or of a governmental unit <br />the jurisdiction of which is entirely within the jurisdiction of <br />the City), and (4) the aggregate face amount of all tax - exempt <br />bonds (other than private activity bonds) issued by the City (and . <br />all subordinate entities thereof, and all entities treated as one <br />issuer with the City) during the calendar year in which the <br />Certificates are issued and outstanding at one time is not <br />reasonably expected to exceed $5,000,000, all within the meaning <br />of Section 148(f) (4) (D) of the Code. <br />24. Designation of Qualified Tax - Exempt Obligations. <br />In order to qualify the Certificates as "qualified tax- exempt <br />obligations" within the meaning of Section 265(b)(3) of the Code, <br />the City hereby makes the following factual statements and <br />representations: <br />1146366.1 <br />(a) the Certificates are issued after August 7, 1986; <br />(b) the Certificates are not "private activity bonds" <br />as defined in Section 141 of the Code; <br />(c) the City hereby designates the Certificates as <br />"qualified tax - exempt obligations" for purposes of Section <br />265(b) (3) of the Code; <br />(d) the reasonably anticipated amount of tax - exempt <br />obligations (other than private activity bonds, treating <br />qualified 501(c)(3) bonds as not being private activity <br />bonds) which will be issued by the City (and all entities <br />treated as one issuer with the City, and all subordinate <br />entities whose obligations are treated as issued by the <br />21 <br />