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not described in Section 103 (a) of the Internal Revenue Code of <br /> 1986, as amended (the "Code" ) , and it will neither take any <br /> action nor make or permit any use of proceeds of the Bonds or <br /> other funds of the City treated as proceeds of the Bonds at any <br /> time during the term of the Bonds which will cause the Bonds not <br /> to be obligations not described in that Section 103 (a) . The <br /> City also covenants that , if all gross proceeds of the Bonds <br /> have not been spent within six months after the date of issuance <br /> of the Bonds , it will calculate, or cause to be calculated, and <br /> rebate to the United States all earnings from the investment of <br /> gross proceeds of the Bonds that are in excess of the amount <br /> that would have been earned had the yield on those investments <br /> been equal to the yield on the Bonds, plus all income derived <br /> from those excess earnings , to the extent and in the manner <br /> required by Section 148 of the Code and applicable regulations . <br /> If the City fails to meet rebate requirements applicable to the <br /> Bonds under Section 148 of the Code, the City covenants that , to <br /> the extent permitted by that Section, it will pay the penalty <br /> provided in Subsection 148(f) (7) (C) if required to prevent <br /> interest on the Bonds from being included in gross income for <br /> federal income tax purposes . The City certifies that it has not <br /> been notified of any listing or proposed listing by the Internal <br /> Revenue Service to the effect that it is a bond issuer whose <br /> arbitrage certifications may not be relied upon. <br /> - 9 - <br />