Ord 2013-021/General Obligation Refunding Bonds in an amount not to exceed $22,500,000

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(2) to take any action to assure that no more than 10 percent of the proceeds of the Tax - Exempt Bonds or the Refunded Obligations or the projects financed or refinanced therewith (less amounts deposited to a reserve fund, if any) are used for any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds of the Tax - Exempt Bonds or the Refunded Obligations or the projects financed or refinanced therewith are so used, such amounts, whether or not received by the City, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Tax - Exempt Bonds, in contravention of section 141(b)(2) of the Code; (3) to take any action to assure that in the event that the "private business use" described in subsection (1) hereof exceeds 5 percent of the proceeds of the Tax - Exempt Bonds or the Refunded Obligations or the projects financed or refinanced therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (4) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Tax - Exempt Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (5) to refrain from taking any action which would otherwise result in the Tax - Exempt Bonds being treated as "private activity Tax - Exempt Bonds" within the meaning of section 141(b) of the Code; (6) 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; (7) 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 current refunding Tax - Exempt Bonds, for a period of 90 days and in the case of an advance refunding Tax - Exempt Bonds, for a period of 30 days, (B) amounts invested in a bona fide debt service fund, within the meaning of section 1.148 -1(b) of the Treasury Regulations, and San Marcos GORB 2013 - Delegated: Ordinance 23