Autthorizing the acquistion, construction, and installation of certain improvements and extensions to sewage works, the issuance and sale of additional revenue bonds

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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 1998 Bond proceeds will be loaned to any entity or person. No 1998 Bond proceeds will be transferred, directly or indirectly, or deemed transferred to a nongovernmental person in any manner that would in substance constitute a loan of the 1998 Bond proceeds. (c) The City will not take, or cause to permit to be taken by it or by any party under its control, or fail to take or cause or permit to fail to be taken by it or by any party under its control, any action with respect to the 1998 Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the 1998 Bonds pursuant to Section 103 of the Code, nor will the City act in any other manner which would adversely affect such exclusion. The City further covenants that it will not make any investment or do any other act or thing during the period that any 1998 Bond is outstanding hereunder which would cause any 1998 Bond to bean "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 1998 Bonds. (d) The City will, to the extent necessary to preserve the exclusion of interest on the 1998 Bonds from gross income for federal income tax purposes, rebate all required arbitrage profits on 1998 Bond proceeds or other moneys treated as 1998 Bond proceeds to the federal government and will set aside such moneys in a Rebate Account to be held by the Controller in trust for such purpose. Section 20. Compliance with Tax Sections. Notwithstanding any other provisions of this Ordinance, the covenants and authorizations contained in this Ordinance ("Tax Sections") which are designed to preserve the tax exempt status of interest on the 1998 Bonds or the exclusion of interest on the 1998 Bonds from gross income under federal law ("Tax Exemption") need not be complied with if the City receives an opinion of nationally recognized bond counsel that any Tax Section is unnecessary to preserve the Tax Exemption. Section 21. Supplemental Ordinances. Subject to the terms and provisions contained in this Section, and not otherwise, the owners of not less than sixty-six and two-thirds percent (66- 2/3%) in aggregate principal amount of the bonds issued pursuant to this Ordinance and then -26- :ODMA\PCDOCS\SBDOCS 1\1494T3