2008-99 PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS

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� the U.S., without further order or direction from the Corporate Authorities, from time to time as required, amounts sufficient to meet the Rebate Requirement or to pay the Penalty. 4. Interest earnings in the Bond Fund are hereby authorized to be transferred, without further order or direction from the Corporate Authorities, from time to time as required, to the 148 Compliance Fund for the purposes herein provided; and proceeds of the Bonds and other funds of the City are also hereby authorized to be used to meet the Rebate Requirement or to pay the Penalty, but only if necessary after application of investment earnings as aforesaid and only as appropriated by the Corporate Authorities. C. BANK QUALIFICATION. The City further recognizes the provisions of Section 265(b)(3) of the Code which provide that a "qualified tax-exempt obligation" as therein defined may be treated by certain financial institutions as if it were acquired on August 7, 1986, as amended, for certain purposes. The City hereby deemed designates the portion of the Bonds issued to refund the Refunded Notes to the amount of $3,042,400 as a "qualified tax-exempt obligation" for the purposes and within the meaning of Section 265(b)(3) of the Code. In support of such designation the City certifies, represents and covenants as follows: l. The Refunded Notes were bank qualified. 2. The final maturity of the Bonds is not more than 30 years after the date of issue of the Refunded Notes. 3. The Refunded Notes were short-term issues, having three years or less of average life at the time of their issuance. 4. The aggregate principal amount of the Bonds does not exceed $10,000,000. The City hereby designates the remaining amount of Project Bonds, namely $6,957,600, as may be from time to time outstanding for purposes of said Section 265(b)(3) as a "qualified -33-