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such items shall remain the sole property of the City in which neither the Authority nor the
<br />Assignee shall have any interest and may be modified or removed by the City at any time
<br />provided that the City shall repair and restore any and all damage to the Property resulting
<br />from the installation, modification or removal of any such items. Nothing in this Lease
<br />Agreement shall prevent the City from purchasing or leasing items to be installed pursuant
<br />to this Section 5.10 under a lease or conditional sale agreement, or subject to a vendor's lien
<br />or security agreement, as security for the unpaid portion of the purchase price thereof,
<br />provided that no such lien or security interest shall attach to any part of the Property.
<br />Section 5.11. Liens. The City shall not, directly or indirectly, create, incur, assume or
<br />suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect
<br />to the Property, other than the respective rights of the Authority and the City as provided
<br />herein and Permitted Encumbrances. Except as expressly provided in this Article V, the
<br />City shall promptly, at its own expense, take such action as may be necessary to duly
<br />discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim, for
<br />which it is responsible, if the same shall arise at any time. The City shall reimburse the
<br />Authority for any expense incurred by it in order to discharge or remove any such
<br />mortgage, pledge, lien, charge, encumbrance or claim.
<br />Section 5.12. Private Activity Bond Limitation. The City shall assure that proceeds of
<br />the Lease Agreement are not so used as to cause the Lease Agreement to satisfy the private
<br />business tests of section 141(b) of the Code or the private loan financing test of section 141(c)
<br />of the Code.
<br />Section 5.13. Federal Guarantee P_ rohibiti. The City shall not take any action or
<br />permit or suffer any action to be taken if the result of the same would be to cause the Lease
<br />Agreement to be "federally guaranteed" within the meaning of section 149(b) of the Code.
<br />Section 5.14. Rebate Requirement. The City shall take any and all actions necessary to
<br />assure compliance with section 148(f) of the Code, relating to the rebate of excess investment
<br />earnings, if any, to the federal government, to the extent that such section is applicable to the
<br />Lease Agreement.
<br />Section 5.15. No Arbitrage. The City shall not take, or permit or suffer to be taken,
<br />any action with respect to the proceeds of the Lease Agreement which, if such action had
<br />been reasonably expected to have been taken, or had been deliberately and intentionally
<br />taken, on the effective date of the Lease Agreement, would have caused the Lease
<br />Agreement to be "arbitrage bonds" within the meaning of section 148 of the Code.
<br />Section 5.16. Maintenance of Tax -Exemption. The City shall take all actions necessary
<br />to assure the exclusion of interest with respect to the Lease Agreement from the gross
<br />income of the recipients thereof to the same extent as such interest is permitted to be
<br />excluded from gross income under the Code as in effect on the effective date of the Lease
<br />Agreement.
<br />Section 5.17. Environmental Covenants.
<br />(a) The City shall not cause or permit the Property or any part thereof to be used to
<br />generate, manufacture, refine, transport, treat, store, handle, dispose, transfer, produce or
<br />process Hazardous Materials, except in compliance with all applicable Federal, state and
<br />local taws or regulations, nor shall the City cause or permit, as a result of any intentional or
<br />unintentional act or omission on the part of the City or any tenant or subtenant, a release of
<br />Hazardous Materials onto the Property. The City shall comply with and ensure compliance
<br />by all tenants and subtenants with all applicable Federal, state and local laws, ordinances,
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