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(i) The Equipment is essential to and will be used only for the purpose of •performing one or more governmental functions of the Lessee consistent with the scope of the Lessee's authority and will not be used in a trade or business of any person or entity. The Lessee shall execute and deliver to Lessor an Essential Use Certificate in form and substance reasonably satisfactory to the Lessor. 0) The Equipment is, and shall remain during the term of this Agreement, personal property. (k) The Lessee will promptly and duly execute and deliver to the Lessor such further documents, instruments and assurances and take such further action as the Lessor may from time to time reasonably request in order to carry out the intent and purpose of this Agreement and to establish and protect the rights and remedies created or intended to be created in favor of the Lessor hereunder. (1) The aggregate amount of the rental payments due under this Agreement during the current fiscal year of the Lessee have been, and are, included in the Lessee's budget for such fiscal year for which an appropriation has been made by the City Council. SECTION 9. WARRANTIES AND REPRESENTATIONS OF THE LESSOR • The Lessor warrants and represents to the Lessee as follows, which representations and warranties shall be continuing. (a) The Lessor is a financial institution duly incorporated and in good standing with the Commonwealth of Virginia and is duly authorized to enter into the transactions contemplated by this Agreement and to carry out its obligations hereunder; (b) The Lessor has full power and authority to enter into this Agreement and all other documents relating thereto and the performance of the Lessor's obligations hereunder have been duly and validly authorized, executed and delivered by the Lessor and approved under all laws, regulations and procedures applicable to Lessor and this Agreement constitutes a valid, legal and binding obligation of the Lessor, enforceable in accordance with its terms; SECTION 10. --Intentionally left blank -- SECTION 11. TAX COVENANTS AND INDEMNIFICATION 11.1 Covenants. The parties assume that the Lessor can exclude the interest component of the rental payments from Federal gross income. The Lessee covenants and agrees • that it will (i) use a book entry system to register the owner of this Agreement so as to meet the applicable requirements of Section 149(a)(3) of the Code; (ii) timely file a Form 8038-G with the