Ord 2018-017/general obligation Bonds; levying an ad valorem tax in support of the bonds; approving a paying agent/registrar agreement, an official Statement, and a purchase agreement; establishing procedures For selling and delivery of one or more series

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(4) to refrain from taking any action which would otherwise result in the Tax- Exempt Bonds being treated as"private activity bonds" within the meaning of section 141(b) of the Code; (5) to refrain from taking any action that would result in the Tax-Exempt Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (6) to refrain from using any portion of the proceeds of the Tax-Exempt Bonds, directly or indirectly,to acquire or to replace funds which were used,directly or indirectly,to acquire investment property(as defined in section 148(b)(2)of the Code)which produces a materially higher yield over the term of the Tax-Exempt Bonds, other than investment property acquired with-- (A) proceeds of the Tax-Exempt Bonds invested for a reasonable temporary period of 3 years or less or,in the case of a refunding bond,for a period of 30 days or less until such proceeds are needed for the purpose for which the Bonds are issued, (B) amounts invested in a bona fide debt service fund,within the meaning of section 1.148-1(b) of the Treasury Regulations, and (C) amounts deposited in any reasonably required reserve or replacement r fund to the extent such amounts do not exceed 10 percent of the proceeds of the Tax- Exempt Bonds; (7) to otherwise restrict the use of the proceeds of the Tax-Exempt Bonds or amounts treated as proceeds of the Tax-Exempt Bonds,as maybe necessary,so that the Tax-Exempt Bonds do not otherwise contravene the requirements of section 148 of the Code(relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (8) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Tax-Exempt Bonds)an amount that is at least equal to 90 percent of the"Excess Earnings,"within the meaning of section 148(0 of the Code and to pay to the United States of America, not later than 60 days after the Tax-Exempt Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(1)of the Code. (b) Rebate Fund. In order to facilitate compliance with the above covenant(8), a "Rebate Fund"is hereby established by the City for the sole benefit of the United States of America,and such fund shall not be subject to the claim of any other person, including without limitation the bondholders. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. 24 Sw.n«osGOBZD]e.umm.nuco