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<br />Section 5. Authentication of Transcript. <br /> <br />5.01. The officers of the City are authorized and directed to prepare and furnish <br />to the Purchaser and to the attorneys approving the Bonds, certified copies of <br />proceedings and records of the City relating to the Bonds and to the financial <br />condition and affairs of the City, and such other certificates, affidavits and <br />transcripts as may be required to show the facts within their knowledge or as shown by <br />the books and records in their custody and under their control, relating to the validity <br />and marketability of the Bonds and such instruments, including any heretofore fur- <br />nished, shall be deemed representations of the City as to the facts stated therein. <br /> <br />5.02. The Mayor and City Manager are authorized and directed to certify that <br />they have examined the Official Statement prepared and circulated in connection with <br />the issuance and sale of the Bonds and that to the best of their knowledge and belief <br />the Official Statement is a complete and accurate representation of the facts and <br />representations made therein as of the date of the Official Statement. <br /> <br />Section 6. Tax Covenant. <br /> <br />6.01. The City covenants and agrees with the holders from time to time of the <br />Bonds that it will not take or permit to be taken by any of its officers, employees or <br />agents any action which would cause the interest on the Bonds to become subject to <br />taxation under the Internal Revenue Code of 1986, as amended (the Code), and the <br />Treasury Regulations promulgated thereunder, in effect at the time of such actions, <br />and that it will take or cause its officers, employees or agents to take, all affirmative <br />action within its power that may be necessary to ensure that such interest will not <br />become subject to taxation under the Code and applicable Treasury Regulations, as <br />presently existing or as hereafter amended and made applicable to the Bonds. <br /> <br />6.02. (a) The City will comply with requirements necessary under the Code to <br />establish and maintain the exclusion from gross income of the interest on the Bonds <br />under Section 103 of the Code, including without limitation requirements relating to <br />temporary periods for investments, limitations on amounts invested at a yield greater <br />than the yield on the Bonds, and the rebate of excess investment earnings to the <br />United States if the Bonds (together with other obligations reasonably expected to be <br />issued in calendar year 1990) exceed the small-issuer exception amount of $5,000,000. <br /> <br />(b) For purposes of qualifying for the small issuer exception to the <br />federal arbitrage rebate requirements, the City finds, determines and declares <br />that the aggregate face amount of all tax-exempt bonds (other than private <br />activity bonds) issued by the City (and all subordinate entities of the City) during <br />the calendar year in which the Bonds are issued and outstanding at one time is <br />not reasonably expected to exceed $5,000,000, all within the meaning of Section <br />148(f)(4)(C) of the Code. <br /> <br />6.03. The City further covenants not to use the proceeds of the Bonds or to <br />cause or permit them or any of them to be used, in such a manner as to cause the <br />Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 <br />through 150 of the Code, <br /> <br />6.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within <br />the 'meaning of Section 265(b)(3) of the Code, the City makes the following factual <br />statements and representat ions: <br /> <br />10 <br />