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<br />- <br /> <br />e <br /> <br />ORDINANCE NO. 95-2010 <br /> <br />PAGE2 <br /> <br />section 5. The City Council covenants to take any action or <br />refrain from any action which would adversely affect the treatment <br />of the Note as an obligation described in section 103 of the <br />Internal Revenue Code of 1986, as amended (the "Code"), the <br />interest on which is not includable in the "gross income" of the <br />holder for purposes of federal income taxation. In furtherance <br />thereto, the City Council covenants as follows: <br /> <br />(a) to take any action to assure that in the event that <br />the "private business use" of the Property (within the meaning <br />of section 141(b) of the Code) exceeds 5% of the original <br />principal amount of the Note, then the amount in excess of 5% <br />is used for a "private business use" which is "related" and <br />not "disproportionate," within the meaning of section <br />141(b) (3) of the Code, to the governmental use; <br /> <br />(b) to refrain from taking any action which would <br />otherwise result in the Note being treated as a "private <br />activity bond" within the meaning of section 141(b) of the <br />Code; and <br /> <br />(c) to refrain from taking any action that would result <br />in the Note being "federally guaranteed" within the meaning <br />of section 149(b) of the Code. <br /> <br />It is the understanding of the City that the covenants contained <br />herein are intended to assure compliance with the Code and any <br />regulations or rulings promulgated by the U.S. Department of the <br />Treasury pursuant thereto. In furtherance of such intention, the <br />City hereby authorizes and directs the Mayor of the City to execute <br />any documents, certificates, or reports required by the Code and <br />to make such elections, on behalf of the ci ty , which may be <br />permitted by the Code as are consistent with the propose for the <br />issuance of the Note. In the event that regulations or rulings <br />are hereafter promulgated which modify or expand provisions of the <br />Code, as applicable to the Note, the City will not be required to <br />comply with any covenant contained herein to the extent that such <br />modification or expansion, in the opinion of nationally recognized <br />bond counsel, will not adversely affect the exemption from federal <br />income taxation of interest on the Note under section 103 of the <br />Code. In the event that regulations or rulings are hereafter <br />promulgated which impose additional requirements which are <br />applicable to the Note, the city agrees to comply with the <br />additional requirements to the extent necessary, in the opinion of <br />nationally recognized bond counsel, to preserve the exemption from <br />federal income taxation of interest on the Note under section 103 <br />of the Code. <br /> <br />section 6. The City Council officially finds, determines, <br />recites, and declares that a sufficient written notice of the date, <br />hour, place and subject of this meeting of the City Council was <br />