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BRIGGS AND MORC:AN <br />The Technical and Miscellaneous Revenue Act of 1988 <br />( "TAMRA "), which became law on November 14, 1988, requires that the <br />designation of the Bonds as "qualified tax exempt obligations" be <br />made under Section 265(b)(3) of the Code and that it be made this <br />year. Although it is possible that the Internal Revenue Service <br />will announce an extension of the time for the designation, because <br />a designation was made under the Tax Reform Act and the resolution <br />contained a covenant to take whatever action is necessary to <br />effectuate this designation, it is important that the enclosed <br />resolution be adopted to designate the Bonds as "qualified tax <br />exempt obligations" as required by TAMRA. <br />If any bondholder decides to sell the Bonds it owns at some <br />future time and the City has not adopted this resolution, the <br />market value of the Bonds may be less and the bondholder might <br />attempt to bring an action against the City because of the <br />reduction in value of its Bonds. <br />Please see that the enclosed resolution is adopted at the <br />earliest possible date and, in any event if at all possible, no <br />later than December 31, 1988. We suggest that you retain a copy of <br />this resolution in your files in case any Bondholder requests <br />information regarding this matter. <br />If you have any questions, please give me a call. <br />Very truly yours, <br />Mary <br />Enc. <br />)7 <br />Ippel <br />cc: Ms. Caroline H. Bates, Juran & Moody, Inc. <br />Page 8 <br />