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an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise <br /> cause the interest on the Bonds to be included in the gross income of the recipients thereof for <br /> federal income tax purposes. The City acknowledges that, in the event of an examination by the <br /> Internal Revenue Service of the exemption from Federal income taxation for interest paid on the <br /> Bonds, under present rules, the City is treated as the "taxpayer" in such examination and agrees <br /> that it will respond in a commercially reasonable manner to any inquiries from the Internal <br /> Revenue Service in connection with such an examination. <br /> The City also agrees and covenants with the purchasers and holders of the Bonds 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 the Bonds and affects the tax- <br /> exempt status of the Bonds. <br /> The Council hereby authorizes the officials of the City responsible for issuing the Bonds, <br /> the same being the Mayor, Clerk and Treasurer of the City, to make such further covenants and <br /> certifications as may be necessary to assure that the use thereof will not cause the Bonds to be <br /> arbitrage bonds and to assure that the interest on the Bonds will be exempt from federal income <br /> taxation. In connection therewith, the City and the Council further agree: (a) through their <br /> officers, to make such further specific cov�nants, representations as shall be truthful, and <br /> assurances as may be necessary or advisable; (b) to consult with counsel approving the Bonds <br /> and to comply with such advice as may be given; (c) to pay to the United States, as necessary, <br /> such sums of money representing required rebates of excess arbitrage profits relating to the <br /> Bonds; (d) to file such forms, statements, and supporting documents as may be required and in a <br /> timely manner; and (e) if deemed necessary or advisable by their officers, to employ and pay <br /> fiscal agents, financial advisors, attorneys, and other persons to assist the City in such <br /> compliance. <br /> -28- <br />