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<br />Section 14 <br /> <br />Application of Proceeds; Sale of Note and Bond <br /> <br />(a) Proceeds derived from the sale of the Note together with other monies available <br />therefor shall be used to pay the costs of issuance and other expenses of the City relating to the <br />issuance of the Note and thereafter any remaining funds to be deposited in the Note Proceeds <br />Fund shall be used for the purposes specified in Section 2 (a) ofthis Ordinance and otherwise <br />used in accordance with the provisions of this Ordinance or an opinion of Bond Counsel. <br />Interest accruing on the principal of the Note Proceeds Fund and any profit realized from it may <br />be transferred to the Note Fund to be applied to the payment of interest on the Note during the <br />acquisition, construction, improvement and equipping of the School Project. <br /> <br />(b) Proceeds derived from the sale of the Bond together with other monies available <br />therefor shall be used to pay the costs of issuance and other expenses of the City relating to the <br />issuance of the Bond and thereafter any remaining funds to be deposited in the Bond Proceeds <br />Fund shall be used for the purposes specified in Section 2 (b) of this Ordinance and otherwise <br />used in accordance with the provisions of this Ordinance or an opinion of Bond Counsel. <br />Interest accruing on the principal of the Bond Proceeds Fund and any profit realized from it may <br />be transferred to the Bond Fund to be applied to the payment of interest on the bond during the <br />acquisition, construction, improvement and equipping of the Landfill Project. <br /> <br />Section 15 <br /> <br />No Arbitra!!e Covenant and Covenants and Desi!!nations as to the Code <br /> <br />The City hereby covenants that it will not use or invest, or permit the use or investment of <br />any proceeds of the Note or the Bond, in a manner that would cause either the Note or the Bond <br />to be subjected to treatment under Section 148 ofthe Code and the regulations adopted <br />thereunder as an "arbitrage bond," and to that end the City shall comply with applicable <br />regulations adopted under said Section 148 of the Code. <br /> <br />The City covenants to comply with the Code provisions requiring that any issuance of <br />"governmental bonds," as defined therein, be subject to certain requirements as to rebate and <br />timing and type of payments to be paid for from the proceeds of such notes, as well as other <br />additional requirements. In order to assure compliance with such Code provisions, the City will <br />enter into a Compliance Certificate, to comply with such requirements and covenants therein that <br />it will not breach the terms thereof. <br /> <br />The Council, on behalf of the City, hereby designates the Note and the Bond each as a <br />"qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) ofthe Code and certifies <br />by this Ordinance that is does not reasonably anticipate the issuance by it or its subordinate <br />entities of more than $10,000,000 in "qualified tax-exempt obligations" during the calendar year <br />2005 and will not designate, or permit the designation by any of its subordinate entities of, any of <br />its notes and bonds (or those of its subordinate entities) during the calendar year 2005 which <br />would cause the $10,000,000 limitation of Section 265(b )(3 )(D) of the Code to be violated. <br /> <br />24 <br />