10134-11 Waterworks Revenue Bonds $8,300,000

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SECTION 23. Amendments Without Consent of Bondholders. The Council may, from time to time and at any time, and without notice to or consent of the owners of the 2012 Bonds, adopt such ordinances supplemental hereto (which supplemental ordinances shall thereafter form a part hereo�: (a) To cure any ambiguity or formal defect or omission in this Ordinance or in any supplemental ordinance; (b) To grant to or confer upon the owners of the 2012 Bonds any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the owners of the 2012 Bonds; (c) To procure a rating on the 2012 Bonds from a nationally recognized securities rating agency designated in such supplemental ordinance, if such supplemental ordinance, in the determination of the Council in its sole discretion, will not materially and adversely affect the owners of the 2012 Bonds; (d) To obtain or maintain bond insurance with respect to the 2012 Bonds; (e) To provide for the refunding or advance refunding of the 2012 Bonds; (� To provide for the issuance of additional bonds as provided in Section 20 hereof; or (g) To make any other change which, in the determination of the Council in its sole discretion, is not to the material prejudice of the owners of the 2012 Bonds. SECTION 24. Tax Matters. In order to preserve the exclusion of interest on the 2012 Bonds from gross income for federal income tax purposes and as an inducement to purchasers of the 2012 Bonds,the City represents, covenants and agrees that: (a) No person or entity, other than the City or another state or local governmental unit, will use proceeds of the 2012 Bonds or property financed by the 2012 Bond proceeds other than as a member of the general public. No person or entity other than the City or another state or local governmental unit will own property financed by 2012 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 take-or-pay or 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. (b) No 2012 Bond proceeds will be loaned to any entity or person other than a state or local governmental unit. No 2012 Bond proceeds will be transferred, directly or indirectly, or deemed transferred to a non-governmental person in any ma.nner that would in substance constitute a loan of the 2012 Bond proceeds. (c) The City will not take any action or fail to take any action with respect to the 2012 Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the 2012 Bonds pursuant to Section 103 of the Internal - 28 -