Authorize- Issuance of Revenue Bonds $11,960,000

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� � this Ordinance. If Bonds are to be redeemed by optional redemption and mandatory sinking fund redemption on the same date, the Registrar shall select by lot the Bonds for optional redemption before selecting the Bonds by lot for the mandatory sinking fund redemption. In the event any of the Bonds are issued as Term Bonds, the form of the Bond set forth in Section 3 of this Ordinance shall be modified accordingly. Any reference to payment of principal on the Bonds shall include payment of scheduled mandatory sinking fund redemption payments described in this Section 10. SECTION 11. The provisions of this Ordinance shall be construed to create a trust in the proceeds of the sale of the Bonds for the uses and purposes heiein set forth, and the registered owners of the Bonds shall retain a lien on such proceeds until the same are applied in accordance with the provisions of this Ordinance. The provisions of this Ordinance shall also be construed to create a trust in the county economic development income tax revenues of the City herein directed to be set apart and paid into the Sinking Fund for purposes of such Sinking Fund as set forth in this Ordinance. SECTION 12. To the extent necessary to preserve the exclusion from gross income under federal law of interest on those Bonds issued as tax-exempt obligations (the "Tax- Exempt Bonds"), and as an inducement to the purchasers of the Bonds, the City represents, covenants and agrees that: (a) No person or entity or any combination thereof, other than the City, will use proceeds of the Tax-Exempt Bonds or property financed by said proceeds other than as a member of the general public. No person or entity or any combination thereof, other than the City, will own property financed by the Tax- Exempt Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, a management or incentive payment contract, an arrangement such as a take-or-pay or other type of output contract or any other type of arrangement that differentiates that person's or entity's use of such property from the use by the public at large of such property; (b) No T�-Exempt Bond proceeds will be loaned to any entity or person. No Tax-Exempt Bond proceeds will be transferred directly, or indirectly transferred or deemed transferred to a person other than a governmental unit in a fashion that would in substance constitute a loan of said Tax-Exempt Bond proceeds; (c) The City will not take any action or fail to take any action with respect to the Tax-Exempt Bonds that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the Tax-Exempt Bonds pursuant to Section 103(a) of the Code, in effect on the date of delivery of the Tax-Exempt Bonds, nor will the City act in any manner that would adversely -17-