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<br /> <br /> <br /> <br /> <br /> <br /> (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds <br /> or the projects financed therewith (less amounts deposited to a reserve fund, if any) are used for <br /> any "private business use," as defined in Section 141(b)(6) of the Code or, if more than 10 percent <br /> of the proceeds or the projects financed therewith are so used, such amounts, whether or not <br /> received by the Issuer, with respect to such private business use, do not, under the terms of this <br /> Ordinance, or any underlying arrangement, directly or indirectly, secure or provide for the <br /> payment of more than 10 percent of the debt service on the Bonds, in contravention of Section <br /> 141(b)(2) of the Code; <br /> <br /> (b) to take any action to assure that in the event that the "private business use" described <br /> in subsection (a) hereof exceeds 5 percent of the proceeds of the Bonds or the projects financed <br /> therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 <br /> percent is used for a"private business use" which is "related" and not "disproportionate," within <br /> the meaning of Section 141(b)(3) of the Code, to the governmental use; <br /> <br /> (c) 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 Bonds (less amounts deposited into a reserve fund, <br /> if any) is directly or indirectly used to finance loans to persons, other than state or local <br /> <br /> governmental units, in contravention of Section 141(c) of the Code; <br /> <br /> (d) to refrain from taking any action which would otherwise result in the Bonds being <br /> treated as "private activity bonds" within the meaning of Section 141(b) of the Code; <br /> <br /> (e) to refrain from taking any action that would result in the Bonds being "federally <br /> guaranteed" within the meaning of Section 149(b) of the Code; <br /> <br /> (f) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, <br /> to acquire or to replace funds which were used, directly or indirectly, to acquire investment <br /> property (as defined in Section 148(b)(2) of the Code) which produces a materially higher yield <br /> over the term of the Bonds, other than investment property acquired with <br /> <br /> (1) proceeds of the Bonds invested for a reasonable temporary period of 3 years <br /> or less or, in the case of a refunding bond, for a period of 30 days or less until such <br /> proceeds are needed for the purpose for which the bonds are issued, <br /> <br /> (2) amounts invested in a bona fide debt service fund, within the meaning of <br /> Section 1.148-1(b) of the Treasury Regulations, and <br /> <br /> (3) amounts deposited in any reasonably required reserve or replacement fund to <br /> the extent such amounts do not exceed 10 percent of the proceeds of the Bonds; <br /> <br /> (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as <br /> proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the <br /> <br /> 35 <br />