Common use of Arbitrage and Rebate Clause in Contracts

Arbitrage and Rebate. The Borrower hereby covenants with, -------------------- and certifies to, and for the benefit of, the holders of the Bonds and the Issuer that so long as the Bonds remain Outstanding, moneys on deposit in any fund or account established, maintained or permitted to be established or maintained under the Indenture or under any of the Financing Documents in connection with the Bonds, whether or not such moneys were derived from the proceeds of the sale of the Bonds or from any other source, will not be used or invested in a manner which will cause the Bonds to be classified as "arbitrage bonds" within the meaning of Section 148(a) of the Code. The Borrower obligates itself to comply with the requirements of Section 148 of the Code and any regulations, whether temporary or final, promulgated thereunder or relating thereto, including but not limited to Temporary Treasury Regulation Sections 1.103-15AT and 1.148-l through 1.148-11 (such Section 148 and such regulations hereinafter referred to as the "Arbitrage Rules"). The Borrower agrees to cause to be prepared, by an independent certified public accountant or other expert in tax arbitrage matters reasonably acceptable to the Trustee, a statement or report as to the amount of "rebatable arbitrage" with respect to the Bonds, computed in accordance with the Arbitrage Rules (hereinafter, a "Rebate Statement") as of the end of the fifth and tenth years after the date of issuance of the Bonds (the "Issue Date") and to furnish the same to the Trustee not later than the fortieth (40th) day following each fifth anniversary of the Issue Date while any Bonds are Outstanding. If at the end of each such five year period, funds aggregating the Rebate Amount (hereinafter defined) do not exist in the Rebate Fund, then the Borrower shall pay to the Trustee for deposit into the Rebate Fund within forty (40) days after the end of such five year period the amount needed to be paid into the Rebate Fund to increase the funds therein to an amount equal to such Rebate Fund.

Arbitrage and Rebate. (a) The Borrower hereby covenants with, -------------------- and certifies to, and for the benefit of, the holders of the Bonds and the Issuer Authority that so long as the Bonds remain Outstanding, moneys on deposit in any fund or account established, maintained or permitted to be established or maintained under the Indenture or under any of the Financing Basic Documents in connection with the Bonds, whether or not such moneys were derived from the proceeds of the sale of the Bonds or from any other source, will not be used or invested in a manner which will cause the Bonds to be classified as "arbitrage bonds" within the meaning of Section 148(a) of the Code. The Borrower obligates itself to comply with the requirements of Section 148 of the Code and any regulations, whether temporary or final, promulgated thereunder or relating thereto, including but not limited to Temporary Treasury Regulation Sections 1.103-15AT and 1.148-l 0 through 1.148-11 (such Section 148 and such regulations hereinafter referred to as the "Arbitrage Rules"). The Borrower agrees . (b) Except with respect to cause to be prepared, by earnings on funds and accounts qualifying for an independent certified public accountant or other expert in tax arbitrage matters reasonably acceptable exception to the Trusteerebate requirement of Section 148 of the Code, a statement or report as the Borrower will compute and pay to the amount United States of America the amount, if any, required by Section 148(f)(2) of the Code (the "rebatable arbitrage" Rebate Amount"), as provided in the following subsections of this section. (c) The Authority, at the direction of the Borrower, selects June 1 as the end of each bond year with respect to the Bonds, computed in accordance with . The fifth June 1 following the Arbitrage Rules (hereinafter, a "Rebate Statement") as of the end of the fifth and tenth years after the date of issuance of the Bonds will be the initial installment computation date for the Bonds pursuant to Treasury Regulations Section 1.148-3(e) (the "Issue Initial Installment Computation Date") and to furnish ), unless the same Authority, at the direction of the Borrower, delivers to the Trustee not later than a certificate, signed by an authorized Authority officer, selecting another date to be the fortieth (40th) day following each fifth anniversary installment computation date prior to the date on which any amount with respect to the Bonds is paid or required to be paid to the United States of America as required by Section 148 of the Issue Date while any Bonds are Outstanding. If Code. (d) Within 30 days after the Initial Installment Computation Date, unless such date is changed by the Authority pursuant to paragraph (c), and at least once every five years thereafter, the end of each such five year period, funds aggregating Borrower will cause the Rebate Amount with respect to the Bonds to be computed and will deliver a copy of such computation (hereinafter definedthe "Rebate Amount Certificate") do not exist in to the Authority and to the Trustee. Prior to any payment of the Rebate FundAmount with respect to the Bonds to the United States of America as required by Section 148 of the Code, then the Borrower Rebate Amount Certificate setting forth such Rebate Amount shall pay be prepared or approved by (i) an independent certified public accountant, (ii) any recognized, independent arbitrage rebate calculation service acceptable to the Trustee for deposit into or the Rebate Fund within forty Authority or (40) days after the end of such five year period the amount needed to be paid into the Rebate Fund to increase the funds therein to an amount equal to such Rebate Fund.iii)