Construction of Additions and Improvements to the Sewage Works Bonds

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be held in trust for such purpose, and provision shall also have been made for paying all fees and expenses in connection with the redemption, then and in that case the Series 1989 Bonds or such portion thereof issued hereunder shall no longer be deemed outstanding or an indebtedness of the City. Section 21 . To the extent necessary to preserve the exclusion from gross income of interest on the Series 1989 Bonds under federal law, the City on behalf of itself and the Board of Public Works represents, covenants and agrees that: (a) No person or entity or any combination thereof, other than the City and the Board of Public Works, will use proceeds of the Series 1989 Bonds or property financed by said proceeds other than as a member of the general public. No person or entity or any combina- tion thereof, other than the City and the Board of Public Works, will own property financed by the Series 1989 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 persons's or entity's use of such property from the use by the public at large of such property; (b) No Series 1989 Bond proceeds will be loaned to any entity or person. No Series 1989 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 Series 1989 Bond proceeds; (c) Neither the City nor the Board of Public Works will take any action or fail to take any action with respect to the Series 1989 Bonds that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the Series 1989 Bonds pursuant to Section 103 (a) of the Internal Revenue Code of 1986 (the "Code") , as in effect on the date of delivery of the Series 1989 Bonds, nor will the City or the Board of Public Works act in any manner which would adversely affect such exclusion. The City and the Board of Public Works further covenant that they will not make any investment or do any other act or thing during the period that any Series 1989 Bond is outstanding hereunder which would cause any Series 1989 Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations applicable thereto. The City and the Board of Public Works shall comply with the arbitrage rebate requirements under Section 148 of the Code to the extent applicable; and (d) All officials, officers, members, employees and agents of the City and the Board of Public Works are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the City and the Board of Public Works as of the date the Series 1989 Bonds are issued, to enter into cove- nants on behalf of the City and the Board of Public Works evidencing the commitments made herein and to do all such other acts necessary or appropriate to carry out this Ordinance, including preparation of and execution of preliminary and final official statements describing -27-