R2016-89 AUTHORIZING FUNDING SOURCE ASSIGNMENT

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TAX DESIGNATIONS AND COVENANTS 1. The covenants and designations hereinafter set forth are intended to be, and hereby are, incorporated into the EQUIPMENT LEASE PURCHASE AGREEMENT ,dat�d MAY 18TH ,20 �s (the"Agreement"), between DE LAGE LANDEN PUBLIC FINANCE LLC ("Lessol") and CITY OF DECATUR,ILLINoIs ("Lessee"), and except as otherv✓ise defined herein, all terms defined in the Agreement shall have the same meaning herein as in the Agreement.The Commencement Date of th Agreement is or will be in the calendar year 20� (the "Issuance Year'). 2. Bank Qualification. Lessee inftial here if this provision is applicable: Le�see initfal here if this provision is HOT applicable: (a)Lessee hereby designates the Agreement as a"qualified tax-exempt obtigation"as defined in Sec6on 265(b)(3)(B)of the Code.The aggregate face amount of all tax-exempt obligations(excluding private activity bonds other than qualifled 501(c)(3)bonds)issued or to be issued by Lessee and all subordinate entities thereof during the Issuance Year,including the Agreement,is not reasonably expected to exceed$10,000,000. (b)Lessee hereby covenants that Lessee and all subordinate entities thereof will not issue in excess of$10,000,000 of"qualified tax-exempt abligations" (including the Agreement but excluding private activity bonds other than qualified 501(c)(3)bonds)during the Issuance Year without first ohtaining an opinion of nationally recognized counsel in the area of tax-exempt obligations of state and IocaE govemments acceptable to Lessor that the designation of the Agreement as a"qualifi�l tax-exempt obligation"will not be adversely affected. 3. Small Issue A►fiitrage Rebate Exception. Lessee initial here if ihis provision is applicable: Lessee initial here if this provision is NOT applicable: (a)Lessee represents and warrants that it is a govemmental unit under the laws of the State with general taxing powers;the Agreement is not a private activity bond as defined in Section 141 of the Code;95%or more of the net proceeds of the Agreement will be used for local govemmental activities of Lessee; and the aggregate face amount of all tax-exempt obligations(other than private activiiy bonds)issued by the Lessee and all subordinate entities thereof during the Issuance Year is not reasonably expected to exceed$5,000,000. (b)Lessee hereby covenants that Lessee and all subortlinate entities thereof will not issue in excess of$5,000,000 of tax-exempt bonds(including the Agreement but excluding private ac6vity bonds)during the Issuance Year without first obiaining an opinion of nationally recognized counsel in the area of tax- exempt municipal obliga6ons acceptable to Lessor that the excludability of the interest on the Agreement from gross income for federal tax purposes will not be adversely affected. Lessez Name CITY OF D CATU IS W y Signature ♦ Date b La l� � O Title (SEAL) CERTIFICATE OF CLERK OR SECRETARY OF LESSEE I,the undersigned,do hereby cerlity that(i)Ihe foregoing Tax Designations and Covenants were adopled antl approved by action ot fhe governing body ol Lessee at a meeting tluly called, regular{y convened and attended throughout by the requisite majorily of lhe members thereol,(ii)the officer oi Lessee who executed the foregoing Tax Designation and Covenants on hehalf oi? Lessee and whose genuine signature appears thereon is the duly qualilied and acting of(icer ol Lessee as stated beneath his or her signature,and(iii)said officer has been aulhorized!o execute N the foregoing Taz Designations and Covenants on behali of Lessee. o c 2t�'fX�� " SIGNATUNE i1Tl.c �' DATf. a Gi-�-;�.—�l�e�-�c T �J20t's NI Rights Aeserved.Prin�etl in Ihe U.S A 12PFDOC231N 12/13