748-17 Supplemental Resolution Infrastructure Sales Surtax Revenue Bond (City Hall Project), Series 2017

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in excess of the city's current budgeted revenues),insofar as there city are not sufficient Non-Ad Valorem Revenues to comply with such covenant after satisfaction of the funding requirements for obligations having an express lien or pledge of such revenues and the funding requirements for essential governmental services of the Issuer. Notwithstanding anything herein or in the Master Resolution to the contrary, Non-Ad Valorem Revenues deposited into the Restricted Revenue Account pursuant to this Section 8 may only be used to pay the principal of and interest on the Series 2017 Bond and all other payments due under the Resolution. Section 9. No Reserve Funding. The Series 2017 Bond shall not be secured by the Reserve Account or any subaccount created thereunder. Section 10. 2017 Construction Subaccount. The Issuer covenants to establish a separate subaccount in the Construction Fund to be known as the "2017 Construction Subaccount". The 2017 Construction Subaccount shall only secure the Series 2017 Bond. Section 11. Tax Covenant. The Issuer covenants to the Holder of the Series 2017 Bond provided for in this Resolution that the Issuer will not make any use of the proceeds of the Series 2017 Bond at any time during the term of the Series 2017 Bond which, if such use had been reasonably expected on the date the Series 2017 Bond was issued,would have caused such Series 2017 Bond to be an "arbitrage bond" within the meaning of the Code. The Issuer will comply with the requirements of the Code and any valid and applicable rules and regulations promulgated thereunder necessary to ensure the exclusion of interest on the Series 2017 Bond from the gross income of the Holder thereof for purposes of federal income taxation. Section 12. Captions. The captions and headings in the Resolution are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of the Resolution. Section 13. Bank Qualification. The City Council of the Issuer designates the Series 2017 Bond as a "qualified tax-exempt obligation"within the meaning of Section 265(b)(3) of the Code. The Issuer and any issuer of "tax-exempt" debt that issues "on behalf of' the Issuer do not reasonably expect during the calendar year 2017 to issue more than $10,000,000 of "tax-exempt" obligations including the Series 2017 Bond, exclusive of any private activity bonds as defined in Section 141(a) of the Code. Section 14. Financial Reporting. The Issuer shall provide the Holder of the Series 2017 Bond with audited annual financial statements, free of significant deficiencies or material weakness, and prepared by an independent certified public accountant, within 270 days of the close of each Fiscal Year, commencing Fiscal Year ended September 30, 2017. Additionally, the Issuer shall provide the Holder of the Series 2017 Bond with a copy of its annual budget, as adopted or amended, within 60 days of adoption or amendment, commencing with the budget for Fiscal Year ending September 30, 2018. The Issuer shall also provide such other financial information reasonably requested by the Holder of the Series 2017 Bond which could include copies of any long-term capital improvement plans. Section 15. Additional Covenants. (A) The Issuer shall not amend this Resolution or Article IV, Article V, Article VI or Article VII of the Master Resolution without the prior written consent of the Holder of the Series 2017 Bond. The Issuer shall not make any amendment to the Master Resolution pursuant to the authorization of paragraphs 1, 5 or 8 of Section 7.01 thereof without the prior written consent of the Holder of the Series 2017 Bond. The Issuer shall promptly provide the Holder of the Series 2017 Bond with a copy of any amendment to the Master Resolution. (B) By acceptance of the Series 2017 Bond, the Holders thereof waive any notice of redemption or prepayment otherwise required by Section 3.03 of the Master Resolution and 4