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• 5 .03 . Tax Covenant . The HRA covenants and agrees <br /> with the holders from time to time of the Bonds that it will <br /> not take or permit to be taken by any of its officers , <br /> employees or agents any action which would cause the interest <br /> on the Note to become subject to taxation under the Internal <br /> Revenue Code of 1986, as amended (the "Code") , and the Treasury <br /> Regulations promulgated thereunder (the "Regulations" ) , and <br /> covenants to take any and all actions within its .powers to <br /> ensure that the interest on the Note will not become subject to <br /> taxation under the Code and the Regulations . The HRA will <br /> cause to be filed with the Secretary of Treasury an information <br /> reporting statement in the form and at the time prescribed by <br /> the Code and will comply with the arbitrage rebate requirements <br /> of Section 149 (f) of the Code . <br /> 5 .04 . Arbiitrage Certification. The Chairman, <br /> Secretary and Executive Director, being the officers of the HRA <br /> charged .with the responsibility for issuing the Note .pursuant <br /> to this resolution, are authorized and directed to execute and <br /> deliver to the purchaser thereof a certificate in accordance <br /> with the provisions of Section 148 of the Code, and Sections <br /> 1. 103-13 , 1. 103-14 and 1 . 103-15 of the Regulations , stating the <br /> facts, estimates and circumstances in existence on the date of <br /> issue and delivery of the Note which make it reasonable to <br /> expect that the proceeds of the Note will not be used in a <br /> manner that would cause the Note to be arbitrage bond within <br /> the meaning of the Code and Regulations . <br /> Section 5 .05 . Qualified Tax-Exempt Obligations . The <br /> Board hereby determines and declares that the HRA (including <br /> any "subordinate entity" within the meaning of Section <br /> 265(b) (3) (E) of the Code) does not reasonably anticipate to <br /> issue in calendar year 1989 tax-exempt obligations in an <br /> aggregate principal amount greater than $10, 000 , 000 (exclusive <br /> of Private Activity Bonds, but including qualified 501(c) (3) <br /> bonds as defined in Section 145 of the Code) . The Board hereby <br /> specifically designates the Note as "qualified tax-exempt <br /> obligations" within the meaning of Section 265 of the Code. In <br /> any event the Board will not designate more than $10 , 000 , 000 of <br /> its obligations issued in calendar year 1989 as such "qualified <br /> tax-exempt obligations . " <br /> Chairman <br /> Attest : <br /> Executive Director <br /> -10- <br />