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e e e the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 21. Neqative Covenant as to Use of Im~rovements. The City hereby covenants not to use the Improvements or to cause or permit the Improvements to be used, or to enter into any deferred paYment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 22. Tax-Exemot Status of the Bonds: Rebate. 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 Bonds, 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 Bonds, and (3) the rebate of excess investment earnings to the United States if and to the extent that the Bonds do not qualify for available exceptions. In calendar year 1994, the City does not expect to qualify for the $5,000,000 "small issuer" exception to the federal arbitrage rebate requirements. 23. Designation of Oualified Tax-Exemot Obliqations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265{b) (3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of section 265{b) (3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations {other than private activity bonds, treating 266467.1 18