Authorizing Issuance of Revenue Bonds concerning construction of Improvements to Waterworks, not to exceed $2,050,000

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arrangement such astake-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 1999 Bond proceeds will be loaned to any entity or person other than a state or local governmental City. No 1999 Bond proceeds will be transferred, directly or indirectly, or deemed transferred to anon-governmental person in any manner that would in substance constitute a loan of the 1999 Bond proceeds. (c) The City will not take any action or fail to take any action with respect to the 1999 Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the 1999 Bonds pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations thereunder as applicable to the 1999 Bonds, including, without limitation, the taking of such action as is necessary to rebate or cause to be rebated arbitrage profits on 1999 Bond proceeds or other monies treated as 1999 Bond proceeds to the federal government as provided in Section 148 of the Code, and will set aside such monies, which may be paid from investment income on funds and accounts notwithstanding anything else to the contrary herein, in trust for such purposes. (d) The City will file an information report on Form 8038-G with the Internal Revenue Service as required by Section 149 of the Code. (e) The City will not make any investment or do any other act or thing during the period that any 1999 Bond is outstanding hereunder which would cause any 1999 Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code and the regulations thereunder as applicable to the 1999 Bonds. (f) The City represents that: (1) The 1999 Bonds and BANS are not private activity bonds as defined in Section 141 of the Code; (2) The City hereby designates the 1999 Bonds and BANS as qualified tax-exempt obligations for purposes of Section 265(b) of the Code; (3) The reasonably anticipated amount of qualified tax- exemptobligations (including qualified 501(c)(3) obligations and tax- exemptleases but excluding other private activity bonds) which will be issued by the City, and all entities subordinate to the City during 1999 does not exceed $10,000,000; and (4) The City will not designate more than $10,000,000 of qualified tax-exempt obligations during 1999. -27-