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<br />employees, or agents any action which would cause the inter- <br />est on the Bonds to become subject to taxation under the <br />Internal Revenue Code of 1954, as amended, and regulations, <br />issued thereunder, as now existing or as hereafter amended <br />or proposed and in effect at the time of such action, and <br />that it will take, or it will cause to be taken, all affir- <br />mative 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 />15. For the purpose of qualifying the Bonds as "quali- <br />fied project bonds" within the meaning of Section 802(e)(3) <br />of the Tax Reform Act of 1985, as adopted by the Uni ted <br />States House of Representatives on December 17, 1985 <br />("H.R. 3838"), the Council hereby finds and determines <br />that: <br /> <br />(a) the City is a political subdivision of the <br />State of Minnesota which was in existence on October 23, <br />1985; <br /> <br />(b) the reasonably anticipated amount of "quali- <br />fied tax exempt obligations" (within the meaning of said <br />Section of H.R. 3838) which will be issued by the City <br />during calendar year 1986 will not exceed $10,000,000; <br /> <br />(c) the Bonds will be issued and sold in calendar <br />year 1986, and, assuming the effectiveness of a certain <br />Joint :Statement released on March 14, 1986, by Rep. <br />Rostenkowski, Sen. Packwood and others, the definition <br />of "nonessential function bonds" provided in Section 141 <br />of H.R. 3838 would not apply to the Bonds; and <br /> <br />(d) the Bonds are being issued to provide financ- <br />ing and the BondS, together with any other bonds issued <br />for a common purpose, do not exceed $3,000,000 in aggre- <br />gate principal amount. <br /> <br />The City hereby designates the Bonds as "qualified proj- <br />ect bonds" for the purpose of qualifying the Bonds as <br />"qualified tax exempt obligations" pursuant to Section <br />802(e)(3) of B.R. 3838. <br /> <br />16. When c.my Bond has been discharged as provided in <br />this paragraph, all pledges, covenants, and other rights <br />granted by this Resolution to the Registered OWner(s) of <br />such Bond shall cease, and such Bond shall no longer be <br />deemed to be outstanding under this Resolution. The City <br />may discharge its obligations with respect to any Bond which <br />are due on any date by depositing with the Bond Registrar on <br />or before that date a sum sufficient for the payment thereof <br />1n full; or, 1t any Bond should not be paid when due, it may <br /> <br />- 13 - <br /> <br /> <br />