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Bank-Qualified Tax-Exempt Obligations <br /> Prior to the adoption of the Tax Reform Act of 1986 (the "Act"), financial institutions were <br /> generally permitted to deduct 80% of their interest expense allocable to tax-exempt obligations. <br /> Under the Act, however, financial institutions are generally not entitled to such a deduction for <br /> tax-exempt obligations purchased after August 7, 1986. However the City has designated the <br /> Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Code which <br /> would permit financial institutions to deduct interest expenses allocable to the Bonds to the <br /> extent permitted under prior law. <br /> Financial Advisor <br /> The City has retained Springsted Incorporated, Public Financial Advisors, of St. Paul, <br /> Minnesota, as financial advisor (the "Financial Advisor') in connection with the issuance of the <br /> Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental <br /> officials who have access to relevant data to provide accurate information for the Official <br /> Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to <br /> independently verify the accuracy of such information. The Financial Advisor is not a public <br /> accounting firm and has not been engaged by the City to compile, review, examine or audit any <br /> information in the Official Statement in accordance with accounting standards. The Financial <br /> Advisor is an independent advisory firm and is not engaged in the business of underwriting, <br /> trading or distributing municipal securities or other public securities and therefore will not <br /> participate in the underwriting of the Bonds. <br /> Certification <br /> The City has authorized the distribution of this Official Statement for use in'connection with the <br /> initial sale of the Bonds. <br /> As of the date_ of the settlement of the Bonds, the Purchaser will be furnished with a certificate <br /> signed by the appropriate officers of the City. The certificate will state that as of the date of the, <br /> Official Statement, it did not and does not as of the date of the certificate contain any untrue <br /> statement of material fact or omit to state a material fact necessary in order to make the <br /> statements made therein, in light of the circumstances under which they were made, not <br /> misleading. <br /> - 5 - <br />