LESS $1,900,000 OF SUCH ORIGINAL PROCEEDS WHICH ARE BEING DEPOSITED
INTO THE BOND DEBT SERVICE RESERVE FUND, $366,000 OF SUCH ORIGINAL PROCEEDS
BEING DEPOSITED TO THE BOND EXPENSE FUND, AND $1,136,437.50 OF SUCH ORIGINAL
PROCEEDS FOR THE PURPOSE OF PAYING INTEREST ON THE BONDS DURING THE CONSTRUCTION
PERIOD;
(II)
THE BONDS ARE BEING ISSUED WITH A DATE OF ISSUANCE SO THERE IS NO
ACCRUED INTEREST AND ARE BEING SOLD BY DOUGHERTY & COMPANY LLC, AS UNDERWRITER,
TO THE ULTIMATE PURCHASER(S) THEREOF AT A PRICE EQUAL TO THE PAR AMOUNT THEREOF
RESULTING IN AN ISSUE PRICE OF $19,000,000;
(III)
ALL EARNINGS ON INVESTMENTS OF ORIGINAL PROCEEDS DEPOSITED INTO
THE BOND PROCEEDS SUB-ACCOUNT CONSTITUTE INVESTMENT PROCEEDS;
(IV)
THE ORIGINAL PROCEEDS AND INVESTMENT PROCEEDS (WHICH INCLUDES
INVESTMENT EARNINGS ON INVESTMENT EARNINGS) CONSTITUTE GROSS PROCEEDS OF THE
BONDS;
(V)
THE GROSS PROCEEDS OF THE BONDS DEPOSITED INTO THE BOND PROCEEDS
SUB-ACCOUNT ARE SUBJECT TO YIELD RESTRICTIONS AS TO INVESTMENT AS SET FORTH IN
THE CODE, EXCEPT TO THE EXTENT TO WHICH A TEMPORARY PERIOD (AS DEFINED IN THE
CODE) EXISTS TO ALLOW FOR THE INVESTMENT OF SUCH ACCOUNTS AT A YIELD (AS DEFINED
IN THE CODE) IN EXCESS OF THE YIELD (AS DEFINED IN THE CODE) ON THE BONDS;
(VI)
EXCESS EARNINGS (AS DEFINED IN THE CODE) ON GROSS PROCEEDS ARE
SUBJECT TO REBATE TO THE UNITED STATES OF AMERICA AS SET FORTH IN THE CODE AND
TAX RETURNS ARE
29
REQUIRED TO BE FILED PERIODICALLY AS SET FORTH IN THE CODE AS TO THE CALCULATION
OF SUCH REBATE;
(VII)
THE EXCLUSION OF INTEREST PAID ON THE SERIES 2007A BONDS FROM GROSS
INCOME OF THE RECIPIENT FOR FEDERAL INCOME TAX PURPOSES IS DEPENDANT ON
CONTINUED COMPLIANCE WITH THE REQUIREMENTS OF THE CODE AFTER ISSUANCE OF THE
BONDS AND SUCH COMPLIANCE REQUIREMENTS APPLY TO THE PROCEEDS DEPOSITED INTO THE
BOND PROCEEDS SUB-ACCOUNT, ARE NOT LIMITED TO MATTERS WITHIN THE CONTROL OF THE
ISSUER OR THE BORROWER, MAY BE BASED ON ACTUAL OCCURRENCES RATHER THAN
REASONABLE EXPECTATIONS OF THE ISSUER OR THE BORROWER AT THE TIME OF ISSUANCE OF
THE BONDS AND MAY RESULT IN ALL INTEREST PAID ON THE BONDS TO BE INCLUDED IN
TAXABLE INCOME OF THE RECIPIENT THEREOF FROM THE DATE OF ISSUANCE OF THE BONDS;
(VIII)
COMPLIANCE OBLIGATIONS WITH RESPECT TO THE BONDS, INCLUDING WITHOUT
LIMITATION, RECORDKEEPING, MAY SURVIVE THE TERMINATION OF THE ACCOUNTS AGREEMENT
AND THE PAYMENT IN FULL OF THE BONDS; AND
(IX)
REFERENCES TO THE CODE SHALL INCLUDE THE REGULATIONS, TECHNICAL
ADVICE MEMORANDUM, PUBLISHED RULINGS AND PRIVATE LETTER RULINGS OF THE INTERNAL
REVENUE SERVICE RELATING TO THE APPLICABLE PROVISIONS OF THE CODE.
(D)
COVENANTS RELATING TO BOND PROCEEDS SUB-ACCOUNT.
(I)
EXCEPT FOR AMOUNTS TRANSFERRED TO THE CONSTRUCTION ACCOUNT IN
ACCORDANCE WITH SECTION 4.02(B)(I)(Y), ALL AMOUNTS ON DEPOSIT IN THE BOND
PROCEEDS SUB-ACCOUNT SHALL BE USED SOLELY FOR THE PAYMENT OF COSTS OF THE
PROJECT.
(II)
NOTWITHSTANDING ANY PROVISION HEREIN TO THE CONTRARY, ALL AMOUNTS
ON DEPOSIT IN THE BOND PROCEEDS SUB-ACCOUNT (A) SHALL BE INVESTED SOLELY AT THE