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(a) to cure any ambiguity or formal defect or omission in this Ordinance or in <br /> any supplemental ordinance; or <br /> (b) to grant to or confer upon the owners of the Refunding Bonds any additional <br /> rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon <br /> the owners of the Refunding Bonds; or <br /> (c) to procure a rating on the Refunding Bonds from a nationally recognized <br /> securities rating agency designated in such supplemental ordinance, if such supplemental <br /> ordinance will not adversely affect the owners of the Refunding Bonds; or <br /> (d) to make any other change which is not to the prejudice of the owners of the <br /> Refunding Bonds; or <br /> (e) to provide for the refunding or advance refunding of the Refunding Bonds. <br /> SECTION 24. Tax Matters. In order to preserve the exclusion of interest on the <br /> Refunding Bonds which may be issued on a tax-exempt basis (the "Tax-Exempt Bonds") from <br /> gross income for federal income tax purposes and as an inducement to purchasers of the Tax- <br /> Exempt 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 Tax-Exempt Bonds or property financed by the Tax- <br /> Exempt 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 Tax- <br /> Exempt Bond proceeds or will have actual or beneficial use of such property pursuant to a lease, <br /> a management or incentive payment contract, an arrangement such as take-or-pay or output <br /> contract, or any other type of arrangement that differentiates that person's or entity's use of such <br /> property from the use by the public at large. <br /> (b) No Tax-Exempt Bond proceeds will be loaned to any entity or person other <br /> than a state or local governmental unit. No Tax-Exempt Bond proceeds will be transferred,directly <br /> or indirectly, or deemed transferred to a non-governmental person in any manner that would in <br /> substance constitute a loan of the Tax-Exempt Bond proceeds. <br /> (c) The City will not take any action or fail to take any action with respect to <br /> the Tax-Exempt Bonds that would result in the loss of the exclusion from gross income for federal <br /> income tax purposes of interest on the Tax-Exempt Bonds pursuant to Section 103 of the Code, <br /> and the regulations thereunder as applicable to the Tax-Exempt Bonds, including, without <br /> limitation,the taking of such action as is necessary to rebate or cause to be rebated arbitrage profits <br /> on Tax-Exempt Bond proceeds or other monies treated as Tax-Exempt Bond proceeds to the <br /> federal government as provided in Section 148 of the Code, and will set aside such monies, which <br /> may be paid from investment income on funds and accounts notwithstanding anything else to the <br /> contrary herein, in trust for such purposes. <br /> (d) The City will file an information report on Form 8038-G with the Internal <br /> Revenue Service as required by Section 149 of the Code. <br /> - 21 - <br />