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assessed with respect thereto, which it may now or in the future <br />have with users, managers, developers, contractors, owners or any <br />other person or parties to the extent that such implementation, <br />effectuation or enforcement would (individually or in the <br />aggregate) cause the Bonds to become such "private activity <br />bonds," and to said limited extent the City would and hereby does <br />(solely for the benefit of the owners of the Bonds) disavow any <br />and all such provisions, entitlements and enforcements which <br />would or could become so offending. <br /> <br /> 18. Tax-Exempt Status of the Bonds; Rebate. The City <br />shall comply with requirements necessary under the Code to <br />establish and maintain the exclusion from gross income under <br />Section 103 of the Code of the interest on the Bonds, including <br />without limitation (1) requirements relating to temporary periods <br />for investments, (2) limitations on amounts invested at a yield <br />greater than the yield on the Bonds, and (3) the rebate of excess <br />investment earnings to the United States if the Bonds (together <br />with other obligations reasonably expected to be issued and <br />outstanding at one time in this calendar year) exceed the <br />small-issuer exception amount of $5,000,000. The City does not <br />expect to qualify for the small issuer exception to the federal <br />arbitrage rebate requirements because it is currently expected <br />that the aggregate face amount of all tax-exempt obligations <br />(other than private activity bonds) issued by the City (and all <br />entities subordinate to, or treated as one issuer with, the City) <br />during the 1996 calendar year will exceed $5,000,000. The City <br />may avail itself of such other exceptions to arbitrage rebate as <br />may be available. <br /> <br /> 19. Designation of Qualified Tax-Exempt Obligations. <br />In order to qualify the Bonds as "qualified tax-exempt <br />obligations" within the meaning of Section 265(b) (3) of the Code, <br />the City hereby makes the following factual statements and <br />representations: <br /> <br />(a) the Bonds are issued after August 7, 1986; <br /> <br /> (b) the Bonds are not "private activity bonds" as <br />defined in Section 141 of the Code; <br /> <br /> (c) the City hereby designates the Bonds as "qualified <br />tax-exempt obligations" for purposes of Section 265(b) (3) of <br />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 <br />bonds) which will be issued by the City (and all entities <br />subordinate to, or treated as one issder with, the City) <br />during calendar year 1996 will not exceed $10,000,000; and <br /> <br />324502.1 1 3 <br /> <br /> <br />