2008-02 PROVIDING FOR THE ISSUANCE OF TAXABLE GENERAL OBLIGATION LINE OF CREDIT NOTE

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Section 7. Creation of Project Fund and Appropriations. Note proceeds and other funds of the City as noted are hereby appropriated as follows: The rawdown of the principal proceeds of the Note shall be set aside in a separate fund, hereby cre ted, and designated as the "Project Fund" (the "Project F«nd"), and be used to pay costs of th Project, including costs of issuance of the Note, and interest on or principal of the Note at any time there are insufficient funds from other sources to pay the same. � The Council reserves the right, as it becomes necessary from time to time, to revise the list of projects hereinabove set forth, to change priorities, to revis cost allocations between projects and to substitute projects, in order to meet current needs of th City; subject, however, to limitations of the Act and to the tax covenants set forth herein. Section 8. General Covenants. The City covenants and agr es with the Purchaser that, so long as the Note remains outstanding and unpaid: (a) The City will punctually pay or cause to be paid e principal of and interest on the Note in strict conformity with the terms of the Note an this Ordinance, and it will faithfully observe and perform all of the conditions, covenants '�nd requirements thereof. (b) The City will keep, or cause to be kept, pr per books of record and accounts, separate from all other records and accounts of the ity, in which complete and correct entries shall be made of all transactions relating to t e Project, Such books of record and accounts shall at all times during business hours be subject to the inspection of the Purchaser or its representatives authorized in writing. (c) The City will furnish a copy of the annual financial statements of the City to the Purchaser within 180 days of the close of such fiscal year. (d) The City will preserve and protect the security o the Note and the rights of the registered owners of the Note. -11-