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4It be deemed representations of the City as to the facts stated therein. 14. The City covenants and agrees with the Registered Owner from time to time of the Certificate that the City will not take or permit to be taken by any of its officers, employees, or agents any action which would cause the interest on the Certificate to become generally subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and regulations issued thereunder, as now existing or as hereafter amended or proposed and in effect at the time of such action, and that the City will take, or it will cause to be taken, all affirmative actions within its power which may be necessary to insure that such interest will not become subject to income taxation under the Code. e 15. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Certificate, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Certificate, and (3) the rebate of excess investment earnings (if any) to the United States if and to the extent that the Certificate does not qualify for available exceptions. For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City hereby finds, determines and declares that (1) the Certificate is issued by a governmental unit with general taxing powers, (2) the Certificate is not a private activity bond, (3) ninety-five percent (95%) or more of the net proceeds of the Certificate are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (4) the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City (and all entities subordinate to, or treated as one issuer with, the City) during the 1995 calendar year is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f) (4) (D) of the Code. 16. In order to qualify the Certificate as a "qualified tax-exempt obligation" within the meaning of Section 265(b) (3) of the Code, the City hereby makes the following factual statements and representations: (a) the Certificate is issued after August 7, 1986; (b) the Certificate is not a "private activity bond" as defined in Section 141 of the Code; e 303682. 1 8