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The City shall assure that not in excess of five percent (5%) of the Net Proceeds of the Series 2001 Bonds is used, directly or indirectly, to make or finance a loan to persons other than state or local governmental units . As used in this subsection (b) , the following terms shall have the following meanings : "Net Proceeds" means the face amount of the Series 2001 Bonds, plus accrued interest and premium, if any, less original issue discount, if any. "Private Business Use" means use directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a state or local governmental unit and use as a member of the general public . The City agrees that, so long as the Series 2001 Bonds are outstanding, it will comply with the regulations of the United States Treasury pertaining to "output facilities" (presently §1 . 141-2 and following) . Without limiting the generality of the foregoing, the City has not, subsequent to February 22 , 1998, and the City will not, except upon receiving an opinion of counsel of national reputation with regard to the exemption from income tax of interest on state and local government obligations to the effect that the exemption of interest on the Series 2001 Bonds will not be adversely affected thereby, (a) enter into any contract for the providing of water or (b) enter into any amendment of any contract (regardless of when originally entered into) for the providing of water. (c) The Series 2001 Bonds are hereby designated as "qualified tax-exempt obligations" within the meaning of Section 265 of the Code . The City represents and covenants that it does not expect that the aggregate principal amount of its qualified tax-exempt obligations (excluding "private activity bonds" within the meaning of Section 141 of the Code which are not "qualified 501 (c) (3) bonds" within the meaning of Section 145 of the Code) , including those of its subordinate entities, to be issued in the current calendar year will exceed $10, 000, 000 . (d) The City covenants that it will take no action which would cause the Series 2001 Bonds to be "federally guaranteed" within the meaning of Section 149 (b) of the Code; specifically, (A) the payment of any portion of principal or interest with respect to the Series 2001 Bonds will not be guaranteed (directly or indirectly) by the United States or any agency or instrumentality thereof and (B) not more than 5% of the proceeds of the Series 2001 Bonds (exclusive of proceeds invested for an initial temporary period until needed for the purpose for which the Series 2001 Bonds were issued and proceeds deposited into the Bond Fund) will be 17