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The Holders of not less than sixty-six and two-thirds percent (66-2/3%) in principal <br />amount of the Outstanding Note shall have the power to authorize any modifications to this <br />Ordinance proposed by the City other than as permitted above; provided that without the consent <br />of the Holder of the Note affected thereby, no modifications shall be made which will (a) extend <br />the time of payment of principal of, or interest on, the Note or reduce the principal amount <br />thereof or the rate of interest thereon; (b) give to the Note any preference over any other note or <br />bond secured equally and ratably therewith; (c) deprive the Noteholder of the security afforded <br />by this Ordinance, or (d) reduce the percentage in principal amount of the Note required to <br />authorize any modification to the Ordinance. <br /> <br />Section 14 Application of Proceeds; Sale of Note <br /> <br /> Proceeds derived from the sale of the Note together with other monies available iherefor <br />shall be used to pay the costs of issuance and other expenses of the City r~lating to the issuance <br />of the Note and thereafter any remaining funds to be deposited in the Proceeds Fund shall be <br />used for the purposes specified in Section 2 of this Ordinance and otherwise used in accordance <br />with the provisions of this Ordinance or an opinion of Bond Counsel. Interest accruing on the <br />principal of the Proceeds Fund and any profit realized from it may be transferred to the Note <br />Fund to be applied to the payment of interest on the Note during the acquisition, construction, <br />improvement and equipping of the Project. <br /> <br />Section 15 No Arbitrage Covenant and Covenants and Designations 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, in a manner that would cause the Note to be subjected to treatment <br />under Section 148 of the Code and the regulations adopted thereunder as an "arbitrage bond," <br />and to that end the City shall comply with applicable regulations adopted under said Section 148 <br />of the Code. <br /> <br /> The City covenants to comply with the Code provisiqns 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 has <br />entered into a Compliance Certificate, to comply with such requirements and covenants therein <br />that it will not breach the terms thereof. <br /> <br /> The Council, on behalf of the City, hereby designates the Note as a "qualified tax-exempt <br />obligation" as defined in Section 265(b)(3)(B) of the Code and certifies by this Ordinance that is <br />does not reasonably anticipate the issuance by it or its subordinate entities of more than <br />$10,000,000 in "qualified tax-exempt obligations" during the calendar year 2000 and will not <br />designate, or permit the designation by any of its subordinate entities of, any of its notes and <br />bonds (or those of its subordinate entities) during the calendar year 2000 which would cause the <br />$10,000,000 limitation of Section 265(b)(3)(D) of the Code to be violated. <br /> <br />13 <br /> <br /> <br />