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. covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not <br /> become subject to taxation under such Code and Regulations. The Improvements are public <br /> improvements available for use by members of the general public on a substantially equal basis. The <br /> City will not enter into any lease, use agreement or other contract respecting the Improvements or <br /> security for the payment of the Bonds which would cause the Bonds to be considered "private activity <br /> bonds" or "private loan bonds" pursuant to Section 141 of the Code. <br /> 6.04. Arbitrage Rebate. For purposes of complying with the requirements of Section <br /> 148(f)(4)(C) of the Code relating to the exemption of certain small governmental units from the rebate <br /> requirements of the Code, the City represents that: <br /> (i) the City is a governmental unit with general taxing powers; <br /> (ii) the Bonds are not "private activity bonds" as defined in Section 141 of the <br /> Code(Private Activity Bonds); <br /> (iii) ninety-five percent of the net proceeds of the Bonds are to be used for the local <br /> governmental purposes of the City; and <br /> (iv) the aggregate face amount of all tax-exempt bonds (other than Private Activity <br /> • Bonds) issued by the City in calendar year in which the Bonds are to be issued <br /> is not reasonably expected to exceed $5,000,000. <br /> Therefore, pursuant to the provisions of Section 148(f)(4)(C) of the Code, the City shall not be <br /> required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) <br /> of the Code. <br /> 6.05. Arbitrage Certification. The Mayor and the City Manager, being the officers of <br /> the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized <br /> and directed to execute and deliver to the Purchaser a certification in accordance with the provisions of <br /> Section 148 of the Code,-and the Regulations, stating the facts, estimates and circumstances in <br /> existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the <br /> proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds <br /> within the meaning of the Code and Regulations. <br /> 6.06. Interest Disallowance. The City hereby designates the Bonds as "qualified <br /> tax—exempt obligations" for purpose of Section 265(b) of the Code relating to the disallowance of <br /> interest expenses for financial institutions. The City represents that in calendar year 2000 it does not <br /> reasonably expect to issue tax—exempt obligations which are not private activity bonds (not treating <br /> • -17- <br />