October 15, 2012 - City of Laredo

(1) No lease, rental agreement, lease-purchase agreement, payment agreement or
contract for purchase to which Lessee has been a party at any time has been terminated by
Lessee as a result of insufficient funds being appropriated in any fiscal year. No event has
occurred which would constitute an event of default under any debt, revenue bond or obligation
which Lessee has issued during the past ten (1 0) years.
Section 2.02. Tax Covenants. The Lessee covenants to take any action necessary to
assure, or to refrain from any action which would adversely affect, the treatment of Lessee's
the interest component
made pursuant to this
income taxation. In furtherance thereof, the Lessee covena
(a) to take any action to assure that no more of the proceeds of
more than ten percent (1 0%) of such proceeds
or provide for the payment of more t
Agreement, in contravention of secti
te business use" described
of this Agreement or the
Equipment financed eserve fund, if any) then the
ount which is greater than the lesser of
the this Agreement (less amounts deposited
indirectly used to finance loans to persons, other than
avention of section 14 1 (c) of the Code;
ing any action which would otherwise result in the Lessee's
ated as "private activity bonds" within the meaning of section
ing any action that would result in this Agreement being "federally
guaranteed" within t aning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the this Agreement, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code), which produces a materially
higher yield over the term of this agreement, other than investment property acquired with:
(i) proceeds of this Agreement invested for a reasonable temporary period of
3 years or less,