2001-049-ORD AUTHORIZING ISSUANCE, SALE AND DELIVERY OF COP TAX ADN REVENUE REFUNDING BONDS SERIES 2001

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(e) Authoritv for Issuin~ Renlaeement Bonds. In aecordance with Chapler 120 I, Texas Government Code, this Section 12 shall constitute authority for the issuance of any such replacement bond without necessity of further action by the governing body of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and Ihe Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 13. CUSTODY. APPROVAL. AND REGISTRATION OF BONDS: BOND COUNSEL'S OPINION: CUSIP NUMBERS' AND CONTINGENT INSURANCE PROVISION. IF OBTAINED. The Mayor of the Issuer is hereby authorized to have control of the lnilial Bond issued hereunder and all necessary records and proceedings penaining to the Initial Bond pending its delivety and its investigation, eXanUnation, and approval by the Attorney General of the State of Texas, and its registralion by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond. The approving legal opinion of the Issuer's bond counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Bond or any Bonds issued and delivered in conversion of and exchange or replacement of any Bond, but neither shall have any legal effecl, and shall be solely for the convenience and information of the registered owners of the Bonds. In addition, if bond insurance is obtained, the Bonds may bear an appropriate legend as provided by the Insurer. Section 14. COVENANTS REGARDING T AXEXEMPTION. The Issuer covenants to refrain from taking any action which would adversely affect, and to take any required action 10 ensure, the treatment of the Bonds as obligations described in Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is nol includable in the "gross income" of the holder for purposes of federal income laxation. In furtherance thereof, the Issuer covenanls as follows: (a) to take any action 10 assure that no more than 10 percent of the proceeds of the Bonds or the projects financed therewith (less amounts deposited to a reserve fund, if any) are used for any "privale business use," as defmed in Section 141(b)(6) of the Code or, ifmore than 10 percent ofthe proceeds or the projects financed therewith are so used, such amounts, whether or nol received by the Issuer, with respecl to such private business use, do not, under the terms of this Ordinance, or any underlying arrangemenl, directly or indirectly, secure or provide for the payment of more than 10 percenl of the debt service on the Bonds, in contravention of Section 141 (b)(2) of the Code; (b) to take any action to assure that in the event that the "private business use" described in Subsection (a) hereof exceeds 5 percent ofthe proceeds ofthe Bonds or the projects financed therewith (less amounts deposited inlo 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; (c) to take any action to assure that no amounl which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to fmance loans to persons, other than stale or local governmental units, in contravention of Seclion 141(c) of the Code; 20