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• 5 .03 . Tax Covenant . The HRA covenants and agrees with the holders 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 on the Note to - become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code") , and the Treasury Regulations promulgated thereunder (the "Regulations") , and covenants to take any and all actions within its powers to ensure that the interest on the Note will not become subject to taxation under the Code and the Regulations . The HRA will cause to be filed with the Secretary of Treasury an information reporting statement in the form and at the time prescribed by the Code and will comply with the arbitrary rebate requirements of Section 149( f) of the Code. 5 .04 . Arbitrage Certification. The Chairman, Secretary and Executive Director, being the officers of the HRA charged with the responsibility for issuing the Note pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser thereof a certificate 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 Note which make it reasonable to expect that the proceeds of the Note will not be used in a • manner that would cause the Note to be arbitrage bond within the meaning of the Code and Regulations. Section 5 . 05 . Qualified Tax-Exempt Obligations . The Board hereby determines and declares that the HRA ( including any "subordinate entity" within the meaning of Section 265(b) (3) (E) o,f the Code) does not reasonably anticipate to issue in calendar year 1989 tax-exempt obligations in an aggregate principal amount greater than $10, 000, 000 (exclusive of Private Activity Bonds, but including qualified 501(c) (3) bonds as defined in Section 145 of the Code) . The Board hereby specifically designates the Note as "qualified tax-exempt obligations" within the meaning of Section 265 of the Code. In any event the Board will not designate more than $10, 000, 000 of its obligations issued in calendar year 1989 as such "qualified tax-exempt - obligations . " Section 5 . 06 . Maturity of Note. This Board estimates that the Tax Increment will be sufficient to pay when due the principal of and interest on the Note. Chairman Attest : • Executive Director -10-