Resolutions-2018-005

appropriated for the payment of the Bonds by the City Council and do not constitute debt within the meaning of any constitutional or statutory debt limitation. 3. FUNDS FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS ARE SUBJECT TO NON-APPROPRIATION BY THE ISSUER ANNUALLY AS DESCRIBED IN THE RESOLUTION, AND THERE IS NO CONTINUING OBLIGATION ON THE PART OF THE ISSUER TO APPROPRIATE FUNDS SUFFICIENT TO MAKE PAYMENTS OF PRINCIPAL AND INTEREST ON THE BONDS BEYOND ANY FISCAL YEAR FOR WHICH FUNDS HAVE BEEN APPROPRIATED. 4. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes and is not treated as a preference item in calculating the federal alternative minimum tax imposed under the Internal Revenue Code of 1986 (the “Code”); it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations for taxable years beginning before January 1, 2018, such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. 5. The Bonds are “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code. The opinion set forth in the preceding sentence is subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that the Bonds be, or continue to be, qualified tax-exempt obligations. The Issuer has covenanted to comply with each such requirement. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted to the extent constitutionally applicable, and their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. DORSEY & WHITNEY LLP *This form of bond counsel opinion is subject to change pending the results of the sale of the Bonds contemplated herein.