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heretofore furnished, shall be deemed representations of the City as to the facts <br /> recited therein. <br /> 6.03. Covenant. The City covenants and agrees with the holders from <br /> time to time of the Bonds that it will not take or permit to be taken by any of its <br /> officers, employees or agents any action which would cause the interest on the <br /> Bonds to become subject to taxation under the Internal Revenue Code of 1986, as <br /> amended (the Code), and Regulations promulgated thereunder (the Regulations), as <br /> such are enacted or promulgated and in effect on the date of issue of the Bonds, and <br /> covenants to take any and all actions within its powers to ensure that the interest on <br /> the Bonds will not become subject to taxation under such Code and Regulations. <br /> The Improvements are public improvements available for use by members of the <br /> general public on a substantially equal basis. The City will not enter into any lease, <br /> use agreement or other contract respecting the Improvements which would cause <br /> the Bonds to be considered "private activity bonds" or "private loan bonds" <br /> pursuant to Section 141 of the Code. <br /> 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 <br /> units from the rebate 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 <br /> 141 of the Code (Private Activity Bonds); <br /> (iii) ninety-five percent of the net proceeds of the Bonds are to be <br /> used for the local governmental purposes of the City; and <br /> (iv) the aggregate face amount of all tax-exempt bonds (other than <br /> Private Activity Bonds) issued by the City in calendar year in <br /> which the Bonds are to be issued is not reasonably expected to <br /> exceed $5,000,000. <br /> Therefore, pursuant to the provisions of Section 148(f)(4)(c) of the Code, the City <br /> shall not be required to comply with the arbitrage rebate requirements of paragraphs <br /> (2) and (3) of Section 148(f) of the Code. <br /> 6.04. Investment of Money on Deposit in the Bond Fund. <br /> The Finance Director shall ascertain monthly the amount on deposit in the Bond <br /> Fund. If the amount on deposit therein ever exceeds the aggregate amount of <br /> principal and interest due and payable from the Bond Fund through the next <br /> following February 1 plus a reasonable carryover as permitted by the Regulations, <br /> such excess shall be used to prepay and redeem Bonds or be invested at a yield less <br /> -16- <br />