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(ii) the Bonds are not "private activity bonds" as defined in Section . 141 of the Code (Private Activity Bonds); (iii) ninety-five percent of the net proceeds of the Bonds are to be used for the local governmental purposes of the City; and (iv) the aggregate face amount of all tax-exempt bonds (other than Private Activity Bonds) issued by the City in calendar year in which the Bonds are to be issued is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(c) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. 6.04. Investment of Monev on Deposit in the Bond Fund. After February 1, 1999 the City Clerk shall ascertain monthly the amount on deposit in the Bond Fund. If after February 1, 1999 the amount on deposit therein ever exceeds by more than $53,750 the aggregate amount of principal and interest due and payable from the Bond Fund within the next succeeding 12 months, such excess shall be used to prepay and redeem Bonds or be invested at a yield less than or equal to the yield on the Bonds, based upon their amounts, maturities and interest rates • on their date of issue, computed by the actuarial method. If any additional bonds are ever issued and made payable from the Bond Fund, the dollar amount in the preceding sentence shall be changed to equal 5 percent of the aggregate original principal amount of the bonds of all series, including the Bonds, of which any bonds are then outstanding and payable therefrom. The City reserves the right to amend the provisions of this Section at any time, whether prior to or after the delivery of the Bonds, if and to the extent that this Council determines that the provisions of this Section are not necessary in order to ensure that the Bonds are not "arbitrage bonds" within the meaning of Section 148 of the Code and Regulations. 6.05. Arbitrage Certification. The Mayor and the City Clerk, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certification in accordance with the provisions of Section 148 of the Code, and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. 6.06. Interest Disallowance. The City hereby designates the Bonds as "qualified tax-exempt obligations" for purpose of Section 265(b) of the Code relating • -18-