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Section 27. The Trustee shall only be responsible for <br /> the exercise of good faith and reasonable prudence in the execution <br /> of its trust. The recitals in this Ordinance and in the face of <br /> the Bonds are the recitals of the City and not of the Trustee. The <br /> Trustee shall not be required to take any action as Trustee unless <br /> it shall have been requested to do so in writing by the holders of <br /> not less than ten percent (10%) in principal amount of the Bonds <br /> then outstanding and shall have been offered reasonable security <br /> and indemnity against the costs, expenses and liabilities to be <br /> incurred therein or thereby. The Trustee may resign at any time by <br /> ten (10) days notice in writing to the City Clerk and the majority <br /> in principal amount of the holders of the Bonds then outstanding at <br /> any time, with or without cause, may remove the Trustee. In the <br /> event of a vacancy in the office of Trustee, either by resignation <br /> or by removal, the majority in principal amount of the holders of <br /> the Bonds then outstanding may appoint a new Trustee, such <br /> appointment to be evidenced by a written instrument or instruments <br /> filed with the City Clerk. If the majority in principal amount of <br /> the holders of the Bonds then outstanding shall fail to fill a <br /> vacancy within thirty (30) days after the same shall occur, then <br /> the City shall forthwith designate ' a new Trustee by a written <br /> instrument filed in the office of the City Clerk. The original <br /> Trustee and any successor Trustee shall execute a written <br /> acceptance of the trust imposed upon it or them by this Ordinance, <br /> but only upon the terms and conditions set forth in this Ordinance <br /> and subject to the provisions of this Ordinance, to all of which <br /> the respective holders of the Bonds agree. Such written acceptance <br /> shall be filed with the City Clerk and a copy thereof shall be <br /> placed in the bond transcript. Any successor Trustee shall have <br /> all the powers herein granted to the original Trustee. In the <br /> event of a change in the office of Trustee, the former Trustee <br /> which has resigned or been removed shall cease to be Paying Agent <br /> and the successor Trustee shall automatically become the Paying <br /> Agent. <br /> Section 28. Anything herein to the contrary notwith- <br /> standing, all rights of any holder of any Bond to or with respect <br /> to any moneys or investments held in any fund hereunder shall <br /> terminate at the expiration of two years plus six months from the <br /> date of maturity of such Bond, whether by scheduled maturity or by <br /> call for redemption prior to maturity in accordance with the terms <br /> hereof. <br /> Section 29 . (a) The City covenants that it shall not <br /> take any action or suffer or permit any action to be taken or <br /> condition to exist which causes or may cause the interest payable <br /> on the Bonds to be subject to federal income taxation. Without <br /> limiting the generality of the foregoing, the City represents and <br /> covenants that the proceeds of the Bonds and System revenues will <br /> not be used directly or indirectly in such manner as to cause the <br /> Bonds to be treated as "arbitrage bonds" within the meaning of <br /> Section 148 of the Internal Revenue Code of 1986, as amended (the <br /> "Code") . The City covenants to pay to the United States Treasury <br /> «\my\t.tc1.aa2 -28- <br />