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the Bonds to be deemed to be an "arbitrage bond" within the meaning of Section 148 of the Code and applicable Regulations. 15. No Federal Guarantee. The Bonds will not be "federally guaranteed" within the meaning of Section 149(b) of the Code. For purposes of this Section 15, the Bonds are "federally guaranteed" if- (i) the payment of principal or interest with respect to the Bonds is guaranteed, directly or indirectly (in whole or in part) by the United States (or any agency or instrumentality thereof), or (ii) five percent (5%) or more of the proceeds of the Bonds are (A) used to make loans the payment of principal or interest with respect to which is to be guaranteed (in whole or in part) by the United States (or any agency of instrumentality thereof) or (B) invested (directly or indirectly) in federally insured deposits or accounts. For purposes of the preceding paragraph, the Bonds shall not be treated as "federally guaranteed" by reason of any investment of proceeds of the Bonds (i) during the initial three-year temporary period until such proceeds are needed for the governmental purpose for which the Bonds are being issued, (ii) during the thirteen -month temporary period applicable to bona fide debt service fund investments, (iii) in bonds issued by the United States Treasury, and (iv) in any other investments permitted by the Regulations. 16. Hedge Bonds. For purposes of Section 149(g) of the Code, the City represents and certifies as follows: (i) the City reasonably expects that eighty-five percent (85%) of the spendable proceeds of the Bonds will be used to carry out the governmental purposes of the Bonds within the three-year period beginning on the date the Bonds are issued; and (ii) not more than fifty percent (50%) of the proceeds of the Bonds are to be invested in nonpurpose investments (as defined in Section 148(f)(6)(A) of the Code) having a substantially guaranteed yield for four years or more. 17. Investment of Proceeds. Any investments purchased with the proceeds of the Bonds will be purchased at Fair Market Value. "Fair Market Value" shall mean a price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction. 18. No Other Facts. To the best knowledge and belief of the undersigned, there are no facts or estimates, other than these contained in the underlying documents upon which this certification is based, which would materially change the foregoing expectations. 19. No Notification From IRS. The undersigned have not been notified nor do they have any knowledge to indicate that the City has been listed or is proposed to be listed by the Internal Revenue Service as an issuer whose certifications may not be relied upon. 20. Not Arbitrage Bonds. On the basis of the foregoing, it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage bonds under Sections 103 and 148 of the Code, and the rules and regulations promulgated under those sections, including Sections 1.148-1 through 1.148-10 of the Regulations, as amended. 21. Post -Issuance Compliance. The City has adopted written procedures to (a) ensure that all nonqualified bonds of this issue are remediated according to the requirements of the Code, and (b) monitor the requirements of Section 148 of the Code. 22. Establishment of Issue Price. The provisions of Section 1.148-1(f)(2)(ii) of the Regulations, which sets forth a special rule for use of determining the initial offering price of the Bonds to the public, applies to the initial sale of the Bonds because the winning bidder agreed in writing that it will neither offer nor sell the Bonds to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date (June 19, 2018) and ending on the earlier of the following: (i) the close of the fifth business day after the sale date; or (ii) the date on which the winning bidder has sold a substantial amount (ten percent (10%)) of the Bonds to the public at a price that is no 527553A GAF GE190-14 5