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' Waterworks and the application of funds as provided in <br /> this Ordinance. <br /> Section 21. Defeasance of the Bonds. If, when the Bonds <br /> or a portion thereof shall have become due and payable in <br /> accordance with their terms, or shall have been duly called for <br /> redemption, or irrevocable instructions to call the Bonds or a <br /> portion or portions thereof for redemption shall have been given, <br /> and the whole amount of the principal of, redemption premium, if <br /> any, on and the interest due and payable on all of the Bonds then <br /> outstanding shall be paid; or (i) sufficient moneys, or (ii) direct <br /> obligations of, or obligations the principal of and interest on <br /> which are unconditionally guaranteed by, the United States of <br /> America, the principal of and the interest on which when due will <br /> provide sufficient moneys for such purpose, or (iii) time <br /> certificates of deposit fully secured as to both principal and <br /> interest by obligations of the kind described in clause (ii) above <br /> of a bank or banks, the principal of and interest on which when due <br /> will provide sufficient moneys for such purpose, shall be held in <br /> trust, and provision shall also be made for paying all fees and <br /> expenses for the redemption, then and in such event the Bonds shall <br /> no longer be deemed outstanding or entitled to the pledge of the <br /> revenues of the Waterworks. <br /> Section 22 . Tax Covenants. In order to preserve the <br /> excludability from gross income of interest on the Bonds under <br /> Section 103 of the Code, the City hereby represents, covenants and <br /> agrees as follows: <br /> (a) No person or entity or any combination thereof, <br /> other than the City or any other governmental unit within <br /> the meaning of Section 141(b) (6) and Section 150 (a) (2) <br /> of the Code ("Governmental Unit") will use proceeds of <br /> the Bonds or property financed by such proceeds of the <br /> Bonds other than as a member of the general public. No <br /> person or entity or any combination thereof other than <br /> a Governmental Unit will own property financed out of the <br /> proceeds of the Bonds or will have actual or beneficial <br /> use of such property pursuant to a lease, a management <br /> or incentive payment contract or any other type of <br /> arrangement that differentiates that person's or entity's <br /> use of such property from the use of such property by the <br /> public at large. <br /> (b) No Bond proceeds will be lent to any entity or <br /> person other than a Governmental Unit. No Bond proceeds <br /> will be transferred directly or indirectly, or be deemed <br /> transferred, to a person or entity other than a <br /> Governmental Unit in a fashion that would in substance <br /> constitute a loan of such Bond proceeds. <br /> (c) The City will not take, or cause or permit to <br /> 21 <br />