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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 omission of any action within its <br /> control (including, without limitation, making or peimitting any use of the proceeds of the Note) <br /> if taking, permitting or omitting to take such action would cause the Note to be an arbitrage bond <br /> or a private activity bond within the meaning of the Code or would otherwise cause the interest <br /> on the Note to be included in the gross income of the recipients thereof for federal income tax ' <br /> purposes. The City acknowledges that, in the event of an examination by the Internal Revenue <br /> Service of the exemption from Federal income taxation for interest paid on the Note, under <br /> present rules, the City is treated as the "talcpayer" in such examination and agrees that it will ', <br /> respond in a commercially reasonable manner to any inquiries from the Internal Revenue Service i <br /> in connection with such an examination. I <br /> The City also agrees and covenants with the purchasers and holders of the Note from time <br /> to time outstanding that, to the extent possible under Illinois law, it will comply with whatever <br /> federal talc law is adopted in the future which applies to the Note and affects the tax-exempt status <br /> of the Note. <br /> The Council hereby authorizes the officials of the City responsible for issuing the Note, the <br /> same being the Designated Of�icials, along with the Clerk and Treasurer of the City, to make such <br /> further covenants and certifications as may be necessary to assure that the use thereof will not <br /> cause the Note to be an arbitrage bond and to assure that the interest on the Note will be exempt <br /> from federal income taxation. In connection therewith, the City and the Council further agree: <br /> (a) through their officers, to make such further specific covenants, representations as shall be <br /> truthful, and assurances as may be necessary or advisable; (b) to consult with Bond Counsel and <br /> to comply with such advice as may be given; (c) to pay to the United States, as necessary, such <br /> sums of money representing required rebates of excess arbitrage profits relating to the Note; <br /> -XXVl� <br />