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industrial waste is produced with available sanitary sewers. The City shall, insofar as <br />possible, cause all such sanitary sewers to be connected with the Sewage Works. <br />(i) This Ordinance shall not be repealed or amended in any respect which will <br />adversely affect the rights of the owners of any 2010 Bonds, nor shall the Common <br />Council adopt any law, ordinance or resolution which in any way adversely affects the <br />rights of such owners so long as any of said bonds or the interest thereon remains unpaid. <br />(j) The provisions of this Ordinance shall be construed to create a trust in the <br />proceeds of the sale of the 2010 Bonds for the uses and purposes herein set forth. The <br />provisions of this Ordinance shall also be construed to create a trust in the portion of the <br />Net Revenues herein directed to be set apart and paid into the Sinking Fund and for the <br />uses and purposes of said Fund as set forth in this Ordinance. The owners of the 2010 <br />Bonds shall have all of the rights, remedies and privileges set forth under the Act in the <br />event of default in the payment of the principal of or interest on any of the 2010 Bonds or <br />in the event of default with respect to any of the provisions of this Ordinance or the Act. <br />SECTION 20. Tax Covenants. In order to preserve the exclusion of interest on the <br />2010 Bonds from gross income for federal income tax purposes and as an inducement to <br />purchasers of the 2010 Bonds, the City represents, covenants and agrees that: <br />(a) No person or entity, other than the City or another state or local <br />governmental unit, will use proceeds of the 2010 Bonds or property financed by the 2010 <br />Bond proceeds other than as a member of the general public. No person or entity other <br />than the City or another state or local governmental unit will own property financed by <br />2010 Bond proceeds or will have actual or beneficial use of such property pursuant to a <br />lease, a management or incentive payment contract, an arrangement such as take-or-pay <br />or output contract, or any other type of arrangement that differentiates that person's or <br />entity's use of such property from the use by the public at large. <br />(b) No 2010 Bond proceeds will be loaned to any entity or person other than a <br />state or local governmental unit. No 2010 Bond proceeds will be transferred, directly or <br />indirectly, or deemed transferred to anon-governmental person in any manner that would <br />in substance constitute a loan of the 2010 Bond proceeds. <br />(c) The City will not take any action or fail to take any action with respect to <br />the 2010 Bonds that would result in the loss of the exclusion from gross income for <br />federal income tax purposes of interest on the 2010 Bonds pursuant to Section 103 of the <br />Code, including, without limitation, the taking of such action as is necessary to rebate or <br />cause to be rebated arbitrage profits on 2010 Bond proceeds or other monies treated as <br />2010 Bond proceeds to the federal government as provided in Section 148 of the Code, <br />and will set aside such monies, which may be paid from investment income on funds and <br />accounts, in trust for such purposes. <br />(d) The City will file an information report Form 8038-G with the Internal <br />Revenue Service as required by Section 149 of the Code. <br />-18- <br />