Resolution - #04-12-373 - 12/14/2004

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Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Certificates or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Certificates and in all events within the period ending on the date which is the later of three years after payment of the Reimbursement Expenditure or one year after the date on which the Project to which thc Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Certificates are issued, shall be treated as made on the day the Certificates are issued. Ih'critical, however, that the City may take action contrary to any of the foregoing covenants in lhis paragraph upon receipt of an opinion of its Bond Counsel for the Certificates stating in effect lhat such action will not impair the tax-exempt status of the Certificates. 22. Negative Covenant as to Use of Certificate Proceeds and Equipment. The City hcrcby covenants not to use the proceeds of the Certificates or the Equipment or to cause or perm il thon~ to bo used, or to enter into any deferred payment arrangements for the cost of the I iq u i1¢ m c n I, itl su cia a lanann er as to cause the Certificates to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 23. Tax-Exempt Status of the Certificates; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Certificates, including without l imilali<m (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Certificates, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the six-month expenditure cx eruption fei' gross proceeds of the Certificates as provided in Section 1.148-7(c) of the Rcgu htlions. Thc Mayor aud/or Administrator are hereby authorized and directed to make such c 1 cot ion s as to arbitrage and rebate matters relating to the Certificates as they deem necessary, appropriate or desirable in connection with the Certificates, and all such elections shall be, and shall bo deemed and treated as, elections of the City. 24, No Designation as Qualified Tax-Exempt Obligations. The City will not qualify thc ('crlificates as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of thc (!ode. 25. Severability. If any section, paragraph or provision of this resolution shall be held to be inval icl or unenforceable for any reason, the invalidity or unenforceability of such section, i}m-agi'al)h or provision shall not affect any of the remaining provisions of this resolution. 2(~. Headings. Headings in this resolution are included for convenience of reference ~)~1~, ami arc not a part hereo f, and shall not limit or define the meaning of any provision hereof.