07 - Issuance & Sale of City of Paris GO Bonds, Series 2018

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(C) amounts deposited in any reasonably required reserve or replacement fund to the extent such arnounts do not exceed 10 percent of the proceeds of the Bonds; (7) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do newtother-wisecontravene the requirernents of section 148 of the Code (relating to arbitrage); (8) to refrain fi-orn using the proceeds of the Bonds or proceeds of any prior bonds to pay debt service on another issue more than 90 days after the date of issue of the Bonds in contravention of the requirements of section 149(d) of the Code (relating to advance reftindings); and (9) to pay to the United States of Arnerica at least once during each five-year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 9,0 percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to the United States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of the arnount then required to be paid as a result of Excess Earnings under section 148(f) of the Code, (b) Rebate Fund, In order to facilitate compliance with the above covenant (a)(8), a "Rebate Fund" is hereby established by the Issuer 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. (c) Use of Proceeds. For purposes of the foregoing covenants (a)(1) and (a)(2), the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated that modify or expand provisions of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to cornply, in the opinion of nationally recognized bond counsel, will not adversely affect the exemption frorn federal incorne taxation of interest on the Bonds under section 10�3 of the Code. In the event that regulations or rulings are hereafter promulgated that impose additional requirements applicable to the Bonds, the Issuer agrees to comply with the additional requirements to, the extent necessary, in the opinion of nationally recognized bond counsel, to preserve the exemption frorn federal incorne taxation of interest, on the Bonds under section 103 of the Code. In furtherance of such intention, the Issuer hereby authonizes, and directs the Mayor, the City Manager or the Finance Director to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, that may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. (d) Disposition of Project. The Issuer covenants that the property constituting the Project will not be sold or otherwise disposed of in a transaction resulting in the receipt by the IN