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authenticate and deliver such Bonds in the form and manner and with the effect, as provided in <br /> Section 4(a) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. <br /> Section 11. CUSTODY,APPROVAL,AND REGISTRATION OF BONDS; BOND <br /> COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE <br /> PROVISION, IF OBTAINED. The Pricing Officer is hereby authorized to have control of the <br /> Bonds initially issued and delivered hereunder and all necessary records and proceedings pertaining <br /> to the Bonds pending their delivery and their investigation, examination, and approval by the <br /> Attorney General of the State of Texas,and their registration by the Comptroller of Public Accounts <br /> of the State of Texas. Upon registration of the Bonds the Comptroller of Public Accounts (or a <br /> deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's <br /> Registration Certificate attached to such Bonds,and the seal of the Comptroller shall be impressed, <br /> or placed in facsimile,on such Certificate. The approving legal opinion of the City's Bond Counsel <br /> and the assigned CUSIP numbers may,at the option of the City,be printed on the Bonds issued and <br /> delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the <br /> convenience and information of the Registered Owners of the Bonds. In addition,if bond insurance <br /> or other credit enhancement is obtained, the Bonds may bear an appropriate legend. <br /> Section 12. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON <br /> BONDS ISSUED AS TAX-EXEMPT BONDS. (a) Covenants. The City covenants to take any <br /> action necessary to assure,or refrain from any action which would adversely affect,the treatment of <br /> the Tax-Exempt Bonds as obligations described in section 103 of the Internal Revenue Code of <br /> 1986,as amended(the "Code"),the interest on which is not includable in the"gross income" of the <br /> holder for purposes of federal income taxation. In furtherance thereof,the City covenants as follows: <br /> (1) to take any action to assure that no more than 10 percent of the proceeds of the <br /> Bonds or the projects financed therewith(less amounts deposited to a reserve fund, if any) <br /> are used for any "private business use," as defined in section 141(6)(6) of the Code or, if <br /> more than 10 percent of the proceeds or the projects financed therewith are so used, such <br /> amounts,whether or not received by the City, with respect to such private business use, do <br /> not,under the terms of this Ordinance or any underlying arrangement,directly or indirectly, <br /> secure or provide for the payment of more than 10 percent of the debt service on the Tax- <br /> Exempt Bonds, in contravention of section 141(6)(2) of the Code; <br /> (2) to take any action to assure that in the event that the "private business use" <br /> described in subsection (1) hereof exceeds 5 percent of the proceeds of the Tax-Exempt <br /> Bonds or the projects financed therewith(less amounts deposited into a reserve fund,if any) <br /> then the amount in excess of 5 percent is used for a"private business use"which is"related" <br /> and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the <br /> governmental use; <br /> (3) to take any action to assure that no amount which is greater than the lesser of <br /> $5,000,000,or 5 percent of the proceeds of the Tax-Exempt Bonds(less amounts deposited <br /> into a reserve fund,if any)is directly or indirectly used to finance loans to persons,other than <br /> state or local governmental units, in contravention of section 141(c) of the Code; <br /> 23 <br /> S,,MarwMGOBID IE ONIrcnaGO <br />