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funds of the City in any manner, or take or omit to take any action, that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148(a) of the Code. (c) The City covenants and agrees that it will pay or provide for the payment from time to time of all amounts required to be rebated to the United States pursuant to Section 148(t/of the Code and any Treasury Regulations applicable to the Bonds from time to time. This covenant shall survive payment in full or defeasance of the Bonds. The City specifically covenants to pay or cause to be paid to the United States, the required amounts of rebatable arbitrage at the times and in the amounts as determined by the Arbitrage Instructions. Notwithstanding anything to the contrary contained herein, the Arbitrage Instructions may be amended or replaced if, in the opinion of counsel nationally recognized on the subject of municipal bonds, such amendment or replacement will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds. (d) The City covenants and agrees that it will not use any portion of the proceeds of the Bonds, including any investment income earned on such proceeds, directly or indirectly, (1) in a manner that would cause any Bond to be a "private activity bond" (other than a qualified §501(c)(3) bond) within the meaning of Section 141(a) of the Code, or (2) to make or finance a loan to any Person who is not an organization described in Section 501(c)(3) of the Code. For purposes of the preceding sentence, a loan to an organization described in Section 501(c)(3) of the Code for use with respect to an unrelated trade or business, determined according to Section 513(a) of the Code, constitutes a loan to a person who is not an organization described in Section 501(e)(3) of the Code. (e) The City makes the following representations in connection with the exception for small governmental units from the arbitrage rebate requirements under Section 148(11(4)(D) of the Code: (1) the City is a governmental unit under Missouri law with general taxing powers; (2) none of the Bonds is a private activity bond as defined in Section 141 of the Code; (3) 95 percent or more of the net proceeds of the Bonds are to be used for local governmental activities of the City; (4) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof) during the calendar year 1994 is not reasonably expected to exceed $5,000,000; and (5) the City (including all subordinate entities thereof) will not issue in excess of $5,000,000 of m-exempt bonds (including the Bonds but excluding private activity bonds) during the calendar year 1994 without first obtaining an opinion of nationally recognized counsel in the area of municipal finance that the excludability of the interest on the Bonds from gross income for federal tax purposes will not be adversely affected thereby. (11 The City hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265Co)(3) of the Code. In addition, the City hereby represents that: (1) the aggregate face amount of all tax-exempt obligations (other than private activity bonds which are not "qualified 501(c)(3) bonds") which will be issued by the City (and all subordinate entities thereof) during calendar year 1994 is not reasonably expected to exceed $10,000,000; and -17-