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<br /> <br /> <br /> <br /> <br /> in conversion of and exchange or replacement of any Certificate of Obligation, but neither <br /> shall have any legal effect, and shall be solely for the convenience and information of the <br /> registered owners of the Certificates of Obligation. In addition, if certificate of obligation <br /> insurance is obtained, the Certificates of Obligation may bear an appropriate legend as <br /> provided by the insurer. <br /> <br /> Section 14. COVENANTS REGARDING TAX EXEMPTION. The Issuer covenants <br /> to take any action or refrain from any action which would adversely affect the treatment of <br /> the Certificates of Obligation as obligations described in Section 103 of the Internal Revenue <br /> Code of 1986, as amended, (the "Code"), the interest on which is not includable in the "gross <br /> income" of the holder for purposes of federal income taxation. In furtherance thereof, the <br /> Issuer covenants as follows: <br /> <br /> (a) to take any action to assure that no more than 10 percent of the proceeds of <br /> the Certificates of Obligation (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 <br /> percent of the proceeds are so used, that amounts, whether or not received by the Issuer, <br /> with respect to such private business use, do not, under the terms of this Ordinance, or any <br /> underlying arrangement, directly or indirectly, secure or provide for the payment of more <br /> than 10 percent of the debt service on the Certificates of Obligation, in contravention of <br /> Section 141(b)(2) of the Code; <br /> <br /> (b) to take any action to assure that in the event that the "private business use" <br /> described in subsection (a) hereof exceeds 5 percent of the proceeds of the Certificates of <br /> Obiigation (less amounts deposited into a reserve fund, if any) then the amount in excess <br /> of 5 percent is used for a"private business use" which is "related" and not "disproportionate," <br /> within the meaning of Section 141(b)(3) of the Code, to the governmental use; <br /> <br /> (c) to tak-- any action to assure that no amount which is greater than the lesser <br /> of $5,000,000, or 5 percent of the proceeds of the Certificates of Obligation (less amounts <br /> deposited into a reserve fund, if any) is directly or indirectly used to finance loans to <br /> persons, other than state or local governmental units, in contravention of Section 141(c) of <br /> the Code; <br /> <br /> (d) to refrain from taking any action which would otherwise result in the <br /> Certificates of Obligation being treated as "private activity bonds" within the meaning of <br /> Section 141(b) of the Code; <br /> <br /> (e) to refrain from taking any action that would result in the Certificates of <br /> Obligation being "federally 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 Certificates of <br /> Obligation, directly or indirectly, to acquire or to replace funds which were used, directly or <br /> indirectly, to acquire investment property (as defined in Section 148(b)(2) of the Code) <br /> <br /> 24 <br />