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<br />. <br /> <br />be deemed representations of the City as to the facts stated <br />therein. <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 />. <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 (if <br />any) to the United states if and to the extent that the <br />Certificate does not qualify for available exceptions. For <br />calendar 1994, the city does not expect to qualify for the <br />$5,000,000 "small issuer" exception to federal arbitrage rebate <br />requirements. <br /> <br />16. In order to qualify the Certificate as a "qualified <br />tax-exempt obligation" within the meaning of Section 265(b)(3) of <br />the Code, the City hereby makes the following factual statements <br />and representations: <br /> <br />(a) the Certificate is issued after August 7, 1986; <br /> <br />(b) the Certificate is not a "private activity bond" as <br />defined in Section 141 of the Code; <br /> <br />(c) the city hereby designates the Certificate as a <br />"qualified tax-exempt obligation" for purposes of Section <br />265(b) (3) of the Code; <br /> <br />(d) the reasonably anticipated amount of tax-exempt <br />obligations (other than private activity bonds, treating <br />qualified 501 (c) (3) bonds as not being private activity bonds) <br />which will be issued by the city (and all entities subordinate <br />to, or treated as one issuer with, the City) during calendar year <br />1994 will not exceed $10,000,000; and <br /> <br />. <br /> <br />274037.1 <br /> <br />8 <br />