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e e be deemed to be paid, retired. and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance. except to the extent provided in subsection (d) of this Section. when payment of the principal of such Bond. plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption. or otherwise) either (i) shall have been made or caused to be made in accordance with the tenns thereof (including the giving of any required notice of redemption), or Oi) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying AgentlRegistrar for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) direct obligations of the United Stales of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. which may be United States Treasury obligations such as its State and Local Government Series. and which may be book entry fonn (herein "Government Obligations") which mature as to principal and interest in such amounts and at such time as will insure the availability, without reinvestment, of sufficient money to provide for such payment. and when proper arrangements have been made by the City with the Paying AgentlRegistrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from. or entitled to the benefits of, the revenue herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. (b) Any money so deposited with the Paying AgentlRegistrar may at the written direction of the City also be invested as hereinbefore set fonh. and all income from such Government Obligations received by the Paying AgentlRegistrar which is not required for the payment of the Bonds and interest thereon. with respect to which such money has been so deposited, shall be turned over to the City, or deposited as directed in writing by the City. (c) Until all Defeased Bonds shall have become due and payable, the Paying AgentlRegistrar shall perfonn the services of Paying AgentlRegistrar for such Defeased Bonds the same as if they had not been defeased. and the City shall make proper arrangements to provide and pay for such services as required by this Ordinance. (d) In the event that the principal and/or interest due on the Bonds shall be paid by AMBAC Indemnity pursuant to the municipal bond guaranty insurance policy issed by AMBAC Indemnity insuring the payment when due of the principal of and interest on the Bonds as provided therein (the "Municipal Bond Guaranty Insurance Policy"), the Bonds shall remain outstanding for all purposes, not be defeased or otherwise satisfied, and not be considered paid by the City, and the assignment and pledge of the proceeds of pledged revenues and all covenants. agreements, and other obligations of the City to the registered owners shall continue to exist and shall run to the benefit of AMBAC Indemnity, and AMBAC Indemnity shall be subrogated to the rights of such registered owners. SECTION 20. TAX COVENANTS. The City covenants to take any action to assure. or refrain from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the City covenants as follows: (a) to take any action to assure that no more than 10% of the proceeds of the Bonds (less amounts deposited to a reserve fund. if any) are used for any "private business use", as defined in section 141(b)(6) of the Code or. if more than 10% of the proceeds are so used, that amounts. whelher or not received by lhe City, with respect to such private business use, do not, under the tenns of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10% of the debt service on the Bonds. in contra- vention of section 141(b)(2) of the Code: (b) to take any action to assure that in the event that the "private business use" 18