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<br />. <br /> <br />. <br /> <br />. <br /> <br />14. The City covenants and agrees with the Registered Owner <br />from time to time of the Certificate that the City will not take <br />or permit to be taken by any of its officers, employees, or <br />agents any action which would cause the interest on the <br />Certificate to become generally subject to taxation under the <br />Internal Revenue Code of 1986, as amended (the "Code"), and <br />regulations issued thereunder, as now existing or as hereafter <br />amended or proposed and in effect at the time of such action, and <br />that the City will take, or it will cause to be taken, all <br />affirmative actions within its power which may be necessary to <br />insure that such interest will not become subject to income <br />taxation under the Code. <br /> <br />Without limitation of the foregoing, the City shall not <br />enter into any lease, use agreement, management or operation <br />contract or other agreement respecting the Equipment or any <br />portion thereof which would adversely affect the exemption from <br />federal income tax of the interest on the Certificate, taking <br />into account and observing the requirements of Revenue Procedure <br />97-13 of the Internal Revenue Service and any similar or other <br />applicable revenue procedures or guidelines relating to leases, <br />management contracts and service contracts involving facilities <br />financed with tax-exempt obligations. <br /> <br />15. The City shall comply with requirements necessary under <br />the Code to establish and maintain the exclusion from gross <br />income under Section 103 of the Code of the interest on the <br />Certificate, including without limitation (1) requirements <br />relating to temporary periods for investments, (2) limitations on <br />amounts invested at a yield greater than the yield on the <br />Certificate, and (3) the rebate of excess investment earnings to <br />the United States if the Certificate (together with other <br />obligations reasonably expected to be issued and outstanding at <br />one time in this calendar year) exceed the small-issuer exception <br />amount of $5,000,000, or do not otherwise qualify for available <br />exceptions. For purposes of qualifying for the small-issuer <br />exception to the federal arbitrage rebate requirements, the City <br />hereby finds, determines and declares that (1) the Certificate is <br />issued by a governmental unit with general taxing powers, (2) the <br />Certificate is not a private activity bond, (3) ninety-five <br />percent (95%) or more of the net proceeds of the Certificate are <br />to be used for local governmental activities of the City (or of a <br />governmental unit the jurisdiction of which is entirely within <br />the jurisdiction of the City), and (4) the aggregate face amount <br />of all tax-exempt bonds (other than private activity bonds) <br />issued by the City (and all entities subordinate to, or treated <br />as one issuer with, the City) during the 2000 calendar year is <br />not reasonably expected to exceed $5,000,000, all within the <br />meaning of Section 148(f) (4) (D) of the Code. <br /> <br />1214032.1 <br /> <br />8 <br /> <br />