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4837-9618-8312\4 12 (i) the City is a governmental unit with general taxing powers; (ii) the Tax Abatement Bonds are not “private activity bonds” as defined in Section 141 of the Code (“Private Activity Bonds”); (iii) ninety-five percent of the net proceeds of the Tax Abatement Bonds are to be used for the local governmental purposes of the City; and (iv) the aggregate face amount of all tax-exempt bonds (other than Private Activity Bonds and refunding bonds not taken into account under Section 148(f)(4)(D)(i)(IV) of the Code pursuant to Section 148(f)(4)(D)(iii) of the Code) issued by the City in 2019 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code with respect to the Tax Abatement Bonds. It is hereby determined that the Bonds issued to refund the Refunded Bonds qualify for the “small issuer” exemption from arbitrage rebate set forth in Section 148(f)(4)(D) of the Code, as modified by Section 148(f)(4)(D)(v) of the Code since: (i) the Refunded Bonds qualified for the exception from arbitrage rebate provided by Section 148(f)(4)(D)(i) of the Code; (ii) the aggregate face amount of the bonds issued to refund the Refunded Bonds does not exceed $5,000,000; (iii) [the average maturity of the Bonds issued to refund the Refunded Bonds does not exceed the remaining weighted average maturity of the Refunded Bonds; and] (iv) no Bond has a maturity date which is later than the date which is 30 years after the date the Refunded Bonds were issued. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code with respect to the portion of the Bonds issued to refund the Refunded Bonds. 8.04. Qualified Tax-Exempt Obligations. For purposes of section 265(b)(3) of the Code, the City hereby acknowledges that the portion of the Bonds not in excess of the principal amount of the Refunded Bonds, $1,870,000, are deemed designated as “qualified tax-exempt obligations.” For such purposes, the City represents, in accordance with Section 265(b)(3)(D)(ii) and (iii) that the average maturity date of the portion of the Bonds proposed to be issued to refund the Refunded Bonds (the “Refunding Bonds”), [________] years, is not greater than the average maturity date of the Refunded Bonds, [________] years, and the Refunding Bonds have a maturity date which 32