No. 1965 authorizing the issuance of tax increment revenue bonds, series 2003, of the SB redevelopment district

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0 . . financed by 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 or provides for a payment to the Redevelopment District or the City in connection with such use; (b) No Bond proceeds will be lent to any entity or person. No 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 Bond proceeds; (c) The Redevelopment District will not take any action or fail to take any action with respect to, the Bonds that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the Bonds pursuant to Section 103(a) of the Internal Revenue Code of 1986, as amended and as in effect on the date of delivery of the Bonds (the "Code "), and the Commission will not act in any manner which would adversely affect such exclusion. The Commission further covenants that it will not make any investment or do any other act or thing during the period that any Bond is outstanding hereunder which would cause any Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations applicable thereto as in effect on the date of delivery of the Bonds. The Commission shall comply with the arbitrage rebate requirements under Section 148 of the Code to the extent applicable; and d All officers, members, employees and agents of the Commission, the Department and the City are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the Commission as of the date the Bonds are issued and to make and enter into covenants on behalf of the Commission evidencing the Commission's recognition of and compliance with the covenants and commitments made herein. In particular and without limiting the foregoing, any and all appropriate officers, members, employees and agents of the Commission, the Department and the City are authorized to certify and/or enter into covenants for the Redevelopment District regarding the facts and circumstances and reasonable expectations of the Commission on the date the Bonds are issued and the representations, covenants and commitments made by the Commission herein regarding the amount and use of the proceeds of the Bonds. SECTION 14. Notwithstanding any other provisions of this Resolution, the covenants and authorizations contained in this Resolution (the "Tax Sections ") which are designed to preserve the exclusion of interest on the Bonds from gross income under federal law (the "Tax Exemption ") need not be complied with if the Redevelopment District receives an opinion of bond counsel that any Tax Section is unnecessary to preserve the Tax Exemption. SECTION 15. If, when the Bonds or a portion thereof shall have become due and payable in accordance with their terms or shall have been duly called for redemption or irrevocable instructions to call the Bonds or a portion thereof for redemption shall have been SBIMANI 145795v2 -23-