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counsel to the Issuer in connection with issuance, sale and delivery of the Bond is hereby approved <br />and confirmed. The execution and delivery of an engagement letter between the Issuer and such <br />firm, with respect to such services as bond counsel, is hereby authorized in such form as may be <br />approved by the Mayor, and the Mayor is hereby authorized to execute such engagement letter. <br />(c) In accordance with the provisions of Section 1202.004, Tex. Gov't Code Ann., in <br />connection with the submission of the Bond by the Attorney General of Texas for review and <br />approval, a statutory fee (an amount equal to 0.1% principal amount of the Bond, subject to a <br />minimum of $750 and a maximum of $9,500) is required to be paid to the Attorney General upon <br />the submission of the transcript of proceedings for the Bond. The Issuer hereby authorizes and <br />directs that payment in the amount of the Attorney General filing fee for the Bond be promptly <br />furnished to the Attorney General, for payment to the Attorney General in connection with his <br />review of the Bond. <br />Section 9. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE <br />BOND. (a) Covenants,. The Issuer covenants to take any action necessary to assure, or refrain from <br />any action which would adversely affect, the treatment of the Bond as an obligation described in <br />section 103 of the Code, the interest on which is not includable in the "gross income" of the holder <br />for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as follows: <br />(1) to take any action to assure that no more than 10 percent of the proceeds of the <br />Bond or the projects financed or refinanced therewith (less amounts deposited to a reserve <br />fund, if any) are used for any "private business use," as defined in section 141(b)(6) of the <br />Code or, if more than 10 percent of the proceeds or the projects financed or refinanced <br />therewith are so used, such amounts, whether or not received by the Issuer, with respect to <br />such private business use, do not, under the terms of this Ordinance or any underlying <br />arrangement, directly or indirectly, secure or provide for the payment of more than 10 <br />percent of the debt service on the Bond, in contravention of section 141(b)(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 Bond or the <br />projects financed or refinanced 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 Bond (less amounts deposited into a reserve <br />Rind, if any) is directly or indirectly used to finance loans to persons, other than state or local <br />governmental units, in contravention of section 141(c) of the Code; <br />(4) to refrain from taking any action which would otherwise result in the Bond being <br />treated as a "private activity bond" within the meaning of section 141(b) of the Code; <br />13 <br />