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any arbitrage rebate due under Section 148 of the Code at the times <br /> required by Section 148 of the Code, if any be required. <br /> (b) The City shall assure that (1) not in excess of ten <br /> percent (10%) of the Net Proceeds of the Bonds is used for Private <br /> Business Use if, in addition, the payment of more than ten percent <br /> (10%) of the principal or ten percent (10%) of the interest due on <br /> the Bonds during the term thereof is, under the terms of the Bonds <br /> or any underlying arrangement, directly or indirectly secured by <br /> any interest in property used or to be used for a Private Business <br /> Use or in payments in respect of property used or to be used for a <br /> Private Business Use or is to be derived from payments, whether or <br /> not to the City, in respect of property or borrowed moneys used or <br /> to be used for a Private Business Use; and (ii) that, in the event <br /> that both (A) in excess of five percent (5%) of the Net Proceeds of <br /> the Bonds are used for a Private Business Use, and (B) an amount in <br /> excess of five percent (5%) of the principal or five percent (5%) <br /> of the interest due on the Bonds during the term thereof is, under <br /> the terms of the Bonds or any underlying arrangement, directly or <br /> indirectly, secured by any interest in property used or to be used <br /> for a Private Business Use or in payments in respect of property <br /> used or to be used for a Private Business Use or is to be derived <br /> from payments, whether or not to the City, in respect of property <br /> or borrowed money used or to be used for a Private Business Use, <br /> the excess over such five percent (5%) of Net Proceeds of the Bonds <br /> used for a Private Business Use shall be used for a Private <br /> Business Use related to the governmental use of the System. <br /> The City shall assure that not in excess of five percent <br /> (5%) of the Net Proceeds of the Bonds is used, directly or <br /> indirectly, to make or finance a loan to persons other than state <br /> or local governmental units. <br /> As used in this subsection (b) , the following terms shall <br /> have the following meanings: <br /> "Net Proceeds" means the face amount of the Bonds, plus <br /> accrued interest and premium, if any, less original issue discount, <br /> if any, less any amount deposited into the Debt Service Reserve <br /> which is derived from the sale proceeds of the Bonds. <br /> "Private Business Use" means use directly or indirectly <br /> in a trade or business carried on by a natural person or in any <br /> activity carried on by a person other than a natural person, <br /> excluding, however, use by a state or local governmental unit and <br /> use as a member of the general public. <br /> (c) The Series 1991 Bonds are hereby designated as <br /> "qualified tax-exempt obligations" within the meaning of Section <br /> 265 of the Code. The City represents and covenants that the <br /> aggregate principal amount of its qualified tax-exempt obligations <br /> (excluding "private activity bonds" within the meaning of Section <br /> 141 of the Code which are not "qualified 501 (c) (3) bonds" within <br /> the meaning of Section 145 of the Code) , including those of its <br /> «Imy\b.w,.mz -29- <br />