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ARTICLE IV USE OF PROCEEDS; CONSTRUCTION AND ACQUISITION OF THE PROJECT; TAX COVENANTS SECTION 4.01 Use of Proceeds. The parties hereto acknowledge and agree that the proceeds of the Bonds will be used to finance the acquisition, construction and installation of the Project, to fund the Reserve Account and to pay the Costs of Issuance. SECTION 4.02. Construction and Acquisition of the Project. The City, as agent of the Authority, will, in all respects in accordance with the Indenture, supervise and provide for, or cause to be supervised and provided for, as agent of the Authority, the complete acquisition, construction, improvement, equipping and installation of the Project, and will cause the work under construction or installation contracts to be diligently performed. Upon acquisition and/or completion of the Project, the City will take possession of the Project under the terms and provisions of this Lease. The City may approve changes in the plans and specifications for the Project, so long as any such change does not, and all such changes relating to the Project as a whole do not increase the total cost of the acquisition, construction and installation of the Project to an amount which is in excess of the amount available in the Acquisition Fund for the payment of the Acquisition Costs unless the City provides an amount equal to such excess. Upon completion of the acquisition, construction, improvement and equipping or installation of the Project satisfactory to the City and the Authority, but in any event not later than thirty (30) days following such completion, the City shall deliver to the Trustee and the Bond Insurer a Certificate of Completion with respect to the Project. Payment of the Acquisition Costs shall be made from the moneys deposited with the Trustee in the Acquisition Fund, which shall be disbursed for such purposes in accordance and upon compliance with Section 4.04 of the Indenture. In the event that there is at any time a deficiency in the Acquisition Fund to pay all Acquisition Costs in full, the amount of such deficiency shall be deposited therein by the City, from and only to the extent it has additional funds legally available to it for such purpose. SECTION 4.03. Tax Covenants. The City will not take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of the interest on the Bonds pursuant to Section 103 of the Code, and specifically the City will not directly or indirectly use or make any use of the proceeds of the Bonds or any other funds of the City or take or omit to take any action that would cause the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Code or "private activity bonds" subject to federal income taxation by reason of Section 141(a) of the Code or obligations subject to federal income taxation because they are "federally guaranteed" as provided in Section 149(b) of the Code; and to that end the City, with respect to the proceeds of the Bonds and such other funds, will comply with all requirements of such LA 1-63219.5 10