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<br />The Mayor and Administrator of the City, or any other officer of the City authorized to <br />act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the <br />City the Undertaking in substantially the form presented to the City Council subject to such <br />modifications thereof or additions thereto as are (i) consistent with the requirements under the <br />Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. <br /> <br />23. Negative Covenant as-to-Use of Certificate Proceeds and Equipment. The City - . - ------- <br />hereby covenants not to use the proceeds of the Certificates or the Equipment or to cause or <br />permit them to be used, or to enter into any deferred payment arrangements for the cost of the <br />Equipment, in such a manner as to cause the Certificates to be "private activity bonds" within the <br />meaning of Sections 103 and 141 through 150 of the Code. <br /> <br />24. Tax-Exempt Status of the Certificates: Rebate: Elections. The City shall comply <br />with requirements necessary under the Code to establish and maiFltain the exclusion from gross <br />income under Section 103 of the Code of the interest on the Certificates, including without <br />limitation (i) requirements relating to temporary periods for investments, (ii) limitations on <br />amounts invested at a yield greater than the yield on the Certificates, and (iii) the rebate of excess <br />investment earnings to the United States. The City expects to satisfy the 18-month expenditure <br />exemption for gross proceeds of the Certificates as provided in Section 1.148-7(d)(I) of the <br />Regulations. The Mayor, the Administrator or either one of them, are hereby authorized and <br />directed to make such elections as to arbitrage and rebate matters relating to the Certificates as <br />they deem necessary, appropriate or desirable in connection with the Certificates, and all such <br />elections shall be, and shall be deemed and treated as, elections of the City. <br /> <br />25. Designation of Qualified Tax-Exempt Obligations. In order to qualify the <br />Certificates as "qualified tax exempt obligations" within the meaning of Section 265(b )(3) of the <br />Code, the City hereby makes the following factual statements and representations: <br /> <br />(a) the Certificates are issued after August 7, 1986; <br /> <br />(b) the Certificates are not "private activity bonds" as defmed in Section 141 of the <br /> <br />Code; <br /> <br />(c) the City hereby designates the Certificates as "qualified tax exempt obligations" <br />for purposes of Section 265(b)(3) of the Code. <br /> <br />(d) the reasonably anticipated amount of tax exempt obligations (other than private <br />activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will <br />be issued by the City (and all entities treated as one issuer with the City, and all subordinate <br />entities whose obligations are treated as issued by the City) during this calendar year 2006 will <br />not exceed $10,000,000; and <br /> <br />(e) not more than $10,000,000 of obligations issued by the City during this calendar <br />year 2006 have been designated for purposes of Section 265(b)(3) of the Code. <br /> <br />The City shall use its best efforts to comply with any federal procedural requirements <br />which may apply in order to effectuate the designation made by this paragraph. <br /> <br />1987047vl <br /> <br />16 <br />