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III. AUTHORIZATION OF CERTIFICATES; DEBT LIMITS NOT EXCEEDED SECTION 301. AUTHORIZATION; CONIPLIANCE ~VITH CONSTITUTIONALREQUIRENiENTS. ORS 271.390 provides that a county may enter into contracts for the financing of any real or personal property that the governing body determines is needed, including financing agreements with financial institutions. The Agreement is being executed and delivered by the County pursuant to the authority conferred by said ORS 271.390, as in effect on the date of execution and delivery of the Agreement, in order to finance the acquisition and construction of the County Facilities that are to be part of the Courthouse Square Project for use by the County in its governmental operations. The Board has duly adopted the Resolution at a regular Board meeting on November 10, 1998, which meeting was held in accordance with the requirements of the~ ~''~~~*°r ~~a *'~° laws of the State of Oregon governing the conduct of ineetings of public bodies such as the Board for the purpose of conducting business, making determinations and taking action with respect to the affairs of the County. A true and complete certified copy of the Resolution is delivered herewith, and the Resolution has not been modified, amended or repealed and remains in fiill force and effect as of the date hereof. SECTION 3~2. DEBT LIMITS NOT E~CEEDED. Article XI, Section 10 Of the Oregon Constitution (the "County Debt Limitation Provision") prohibits Oregon counties from incurring any debt ar liabilities in excess of $5,000. Pursuant to a ruling by the Supreme Court of the State of Oregon, if the obligation of a governmental unit to repay borrowed money is made eYpressly subject to appropriation at the discretion of the governmental unit's governing body, it does not create "debt" within the meaning of the County Debt Limitation Provision, because there is no unconditional obligation to pay. The Resolution and the Agreement provide that Financin~ Payments due in each Fiscal Year shall be and remain subject to the County's having duly budgeted and appropriated, in accordance with applicable law, funds for the purpose of paying such Financing Payments. Therefore, the obligation of the County to make Financing Payments does not constitute indebtedness of the County for purposes of any the County Debt Limitation Provision. IV. FEDERAL TAX CERTIFICATIONS SECTION 401. GENERAL. (A) CODE AND REGULATIONS. This Certificate is given on behalf of the County pursuant to §§ 103 and 141 through 150 (inclusive) of the Internal Revenue Code of 1986, as amended (the "Code"), and those Treasury Regulations validly issued, proposed or applicable under the Code, including those Treasury Regulations validly issued or proposed under ~ 103 of the Internal Revenue Code of 1954 (the "1954 Code") that are applicable under the Code (the "Regulations"). GENERAL AND TAX CERTIFICATE PAGE 3