No. 0819 authorizing issuance of bonds on parity with COSB redevelopment district tax increment revenue bonds of 1985 & 1986 for purpose of raising money for property acquisition and redevelopment in SBCAA

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' � 1 will be transferred directly, or indirectly trans- ferred or deemed transferred to a person other than a governmental unit in a fashion that would in sub- stance constitute a loan of said Series 1988 Bond proceeds; (c) The Redevelopment District will not take any action or fail to take any action with respect to the Series 1988 Bonds that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the Series 1988 Bonds pur- suant to Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code ") , as in effect on the date of delivery of the Series 1988 Bonds, nor will the Commission act in any manner which would adversely affect such exclusion. The Commission further covenants that it will not make any invest- ment or do any other act or thing during the period that any Series 1988 Bond is outstanding hereunder which would cause any Series 1988 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 Series 1988 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 reason- able expectations of the Commission as of the date the Series 1988 Bonds are issued and to enter into covenants on behalf of the Commission evidencing the Commission's commitments made herein. In particu- lar, all or any 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 expecta- tions of the Commission on the date the Series 1988 Bonds are issued and the commitments made by the Commission herein regarding the amount and use of the proceeds of the Series 1988 Bonds. SECTION 16. Notwithstanding any other provisions of this Series 1988 Bond Resolution, the covenants and authorizations contained in this Series 1988 Bond Resolution ( "Tax Sections ") which are designed to preserve the exclusion of interest on the Series 1988 Bonds from gross income under federal law ( "Tax Exemption ") need not be complied with if the Redevelopment District receives an opinion of bond -28-