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<br /> /L(1 f) j;) <br /> Section 9.02. Other Re?resentations and Covenants. <br /> <br /> (a) The city will faithfully perform at all times any and <br /> all covenants, undertakings, stipulations, and provisions contained <br /> in this Ordinance and in each Bond; the City will promptly pay or <br /> cause to be paid the principal of, interest on, and premium, if any, <br /> with respect to, each Bond on the dates and at the places and manner <br /> prescribed in such Bond; and the City will, at the times and in the <br /> manner prescribed by this Ordinance, deposit or cause to be <br /> deposited the amounts of money specified by this Ordinance. <br /> (b) The city is duly authorized under the laws of the State <br /> of Texas to issue the Bonds; all action on its part for the creation <br /> and issuance of the Bonds has been duly and effectively taken; and <br /> the Bonds in the hands of the Owners thereof are and will be valid <br /> and enforceable obligations of the City in accordance with their <br /> terms. <br /> (c) The City hereby represents that the proceeds of the <br /> Bonds are needed at this time for the purposes specified in Section <br /> 3.01 hereof; that based on current facts, estimates and <br /> circumstances, it is reasonable expected that final disbursement of <br /> the proceeds of the Bonds will occur within three years after the <br /> Closing Date, that substantial binding obligations to commence such <br /> acquisitions will be incurred within six months of the Closing Date <br /> and that the accomplishment of the projects for which the Bonds are <br /> hereby issued will proceed with due diligence to completion; that it <br /> is not reasonably expected that the proceeds of the Bonds or money <br /> deposited in the Interest and Sinking Fund wi 11 be used or invested <br /> ~n a manner that would cause the Bonds to be or become "arbitrage <br /> bonds," within the meaning of Section 148 of the Code; and that, <br /> except for the Interest and Sinking Fund, no other funds or accounts <br /> have been established or pledged to the payment of the Bonds. <br /> (d) The City will not take any action or fail to take any <br /> action with respect to the investment of the proceeds of the Bonds <br /> or any other funds of the City, including amounts received from the <br /> investment of any of the foregoing, that, based upon the facts, <br /> estimates, and circumstances known on the Closing Date, would result <br /> in constituting the Bonds "arbitrage bonds," within the meaning of <br /> Section 148 of the Code, and the City will not take any deliberate <br /> action motivated by arbitrage that would have such result. <br /> (e) The City will comply with the provisions of Section <br /> 148(f) of the Code (relating to paying certain excess earnings of <br /> investment proceeds of the Bonds to the United States) and the <br /> regulations promulgated thereunder. <br /> (f) The Bonds are hereby designated "qualified tax-exempt <br /> obligations" for the purposes of section 265(b)(3) of the Code. In <br /> this regard, neither the City nor any of its subordinate entities, <br /> 4417f <br /> -26- <br />