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The Council hereby also finds and determines that the Acquired Obligations to be <br /> deposited with the Refunding Trustee and the income therefrom, together with any necessary <br /> beginning cash balance, are sufficient to redeem the 1990A Refunded Bonds and prepay the Lease <br /> Obligations and will discharge and satisfy the obligations of the City under the ordinances <br /> authorizing the issuance of the 1990A Refunded Bonds and the Refunded Lease Obligations and <br /> the pledges of the City therein. Immediately upon the delivery of such Acquired Obligations to <br /> the Refunding Trustee and the deposit of any necessary beginning cash balance, the 1990A <br /> Refunded Bonds and the Refunded Lease Obligations shall be deemed not to be outstanding under <br /> Ordinance No. 1739-90 or Ordinance Nos. 1774-91, 1818-91 and 1858-92 of the City and the <br /> trust agreements and leases authorized by such ordinances, and shall cease to be entitled to any <br /> lien, benefit or security under such ordinance except the right to receive payment from the <br /> Acquired Obligations and beginning cash balance so set aside and pledged. <br /> SECTION 16. Tax Covenants. <br /> A. No Arbitrage or Private Activity Bonds. The City hereby covenants that it will not <br /> make any use of the proceeds from the sale of the Bonds or any other funds of the City that may <br /> be deemed to be proceeds of such Bonds pursuant to Section 148 of the Code and the applicable <br /> regulations thereunder that will cause the Bonds to be "arbitrage bonds" within the meaning of <br /> said Section and said regulations. The City will comply with the applicable requirements of <br /> Section 148 of the Code (or any successor provision thereof applicable to the Bonds) and the <br /> applicable regulations thereunder throughout the term of the Bonds. <br /> The City further covenants that it will not take any action or permit any action to be taken <br /> that would cause the Bonds to constitute "private activity bonds" under Section 141 of the Code. <br /> B. Arbitrage Rebate. The City will pay the Rebate Amount, if any, to the United <br /> States of America at the times and in the amounts necessary to meet the requirements of the Code <br /> to maintain the federal income tax exemption for interest payments on the Bonds, in accordance <br /> with the Arbitrage and Tax Certification. <br /> -22- J:WW W WMOMS03N3CXDOC <br />