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recipient under the Code and the Regulations. In particular, the City covenants and agrees that all <br />proceeds of the Bonds deposited in the Construction Fund will be expended solely for the payment <br />of the costs of the Projects. All improvements so financed will be owned and maintained by the <br />City as part of the public infrastructure of the City and available for use by members of the general <br />public on a substantially equal basis. The City has not entered and will not enter into any lease, <br />management, use or other agreement or contract relating to the use of the Projects, or any portion <br />thereof, or security for the payment of the Bonds which might cause the Bonds to be considered <br />"private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. <br />8.02. Arbitrage Certification. The Mayor and City Manager, being the officers of the City <br />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 certificate in accordance with Section 148 <br />of the Code and applicable Regulations stating the facts, estimates and circumstances in existence <br />on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds <br />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 />8.03. Arbitrage Rebate. (a) It is hereby found that the City has general taxing powers, <br />that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% <br />or more of the net proceeds of the Bonds are to be used for local governmental activities of the <br />City, and that the aggregate face amount of all tax-exempt obligations (other than private activity <br />bonds) issued by the City and all subordinate entities thereof during the year 2020 is not reasonably <br />expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of <br />the Code, the City shall not be required to comply with the arbitrage rebate requirements of <br />paragraphs (2) and (3) of Section 148(f) of the Code. <br />(b) Notwithstanding the provisions of paragraph (a) of this Section 8.03, if the arbitrage <br />rebate provisions of Section 148(f) of the Code applies to the Bonds, the City hereby covenants <br />and agrees to make the determinations, retain records and rebate to the United States the amounts <br />at the times and in the manner required by said Section 148(f) and applicable Regulations. <br />8.04. Qualified Tax -Exempt Obligations. The Council hereby designates the Bonds as <br />"qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the <br />disallowance of interest expense for financial institutions, and hereby finds that the reasonably <br />anticipated amount of tax-exempt obligations which are not private activity bonds (not treating <br />qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for the purpose <br />of this representation) which will be issued by the City and all subordinate entities during calendar <br />year 2020 does not exceed $10,000,000. <br />8.05. Reimbursement. The City certifies that the proceeds of the Bonds will not be used <br />by the City to reimburse itself for any expenditure with respect to the Projects which the City paid <br />or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such <br />prior expenditures, the City shall have made a declaration of official intent which complies with <br />the provisions of Section 1.150-2 of the Regulations, provided that this certification shall not apply <br />or be required with respect to (i) certain de minimis expenditures, if any, with respect to the <br />Projects meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) "preliminary <br />expenditures" for the Projects as defined in Section 1.150-2(1)(2) of the Regulations, including <br />4852-6958-9943\5 <br />10 <br />