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� J <br /> ► <br /> Section 14. General Arbitrage Covenants. The City hereby covenants that it will not <br /> take any action, omit to take any action or permit the taking or omissi n of any action within its <br /> control (including, without limitation, making or permitting any use o the proceeds of the Note) <br /> if taking, permitting or omitting to take such action would cause the N te to be an arbitrage bond <br /> or a private activity bond within the meaning of the Code or would o herwise cause the interest <br /> on the Note to be included in the gross income of the recipients ther of for federal income tax <br /> purposes. The City acknowledges that, in the event of an examinatio by the Internal Revenue <br /> Service of the exemption from Federal income taxation for interes paid on the Note, under <br /> present rules, the City is treated as the "taxpayer" in such examinat on and agrees that it will <br /> respond in a commercially reasonable manner to any inquiries from th Internal Revenue Service <br /> in connection with such an examination. <br /> The City also agrees and covenants with the purchasers and holders of the Note from <br /> time to time outstanding that, to the extent possible under Illinois law, it will comply with <br /> whatever federal tax law is adopted in the future which applies to th Note and affects the tax- <br /> exempt status of the Note. <br /> The Council hereby authorizes the officials of the City respon ible for issuing the Note, <br /> the same being the Designated Officials, along with the Clerk and Tre surer of the City, to make <br /> such further covenants and certifications as may be necessary to assu e that the use thereof will <br /> not cause the Note to be an arbitrage bond and to assure that the in erest on the Note will be <br /> exempt from federal income taxation. In connection therewith, the C'ty and the Council further <br /> agree: (a) through their officers, to make such further specific covena ts, representations as shall <br /> be truthful, and assurances as may be necessary or advisable; (b) to c nsult with Bond Counsel <br /> and to comply with such advice as may be given; (c) to pay to the U ited States, as necessary, <br /> such sums of money representing required rebates of excess arbitrage rofits relating to the Note; <br /> -23- <br />