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at the holder's option on such dates as shall be required to pay all principal and interest to become • due thereon to maturity. Section 6. Tax Covenants and rbitrage Matters 6.01. Restrictive Action. The Issuer covenants and agrees with the owners from time to time of the Bonds, that it will not take, or permit to be taken by any of its officers, employees or agents, any action which would cause the interest payable on the Bonds to become subject to taxation under the Code and any regulations issued thereunder, in effect at the time of such action, and that it will take, or it will cause its officers, employees or agents to take, all affirmative actions within its powers which may be necessary to insure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. The Issuer represents and covenants that the proceeds of the Bonds shall be used to finance the improvements described herein, which is property owned by the Issuer and available for use by the Issuer solely for its governmental purposes. So long as the Bonds are outstanding, the Issuer will not enter into any lease, use agreement or other agreement or contract respecting said improvements and the security for the Bonds which would cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to the provisions of Section 141 of the Code or federally guaranteed bonds under Section 149 of the Code. 6.02 Certification. The Mayor and the City Administrator, being the officers of the Issuer charged with the responsibility for issuing the Bonds pursuant to this resolution, are • - authorized and directed to execute and deliver to the Purchaser an abbitrage certificate in order to satisfy the provisions of the Code and the regulations promulgated thereunder. 6.03. Oualified Tax- xempt Oblig ~ n . In order to enhance the marketability of the Bonds, and since the Issuer does not reasonably expect to issue in excess of $10,000,000 of governmental or qualified 501(c)(3) bonds during calendaz year 1995, the Bonds aze hereby designated by the Issuer as "qualified tax-exempt obligations" pursuant to Section 265 (b)(3) of the Code. 6.04. Arbitrage Rebate Exemption. It is hereby found that the Issuer has general taxing powers, that none of the Bonds is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the Issuer, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the Issuer and all subordinate entities thereof during the year 1995 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(C) of the Code, the Issuer shall not be required to comply with the arbitrage rebate requirements of pazagraphs (2) and (3) of Section 148(f) of the Code. • 1452997 14