Common use of Arbitrage Representations and Elections Clause in Contracts

Arbitrage Representations and Elections. In connection with the issuance of the Bonds, the Borrower hereby represents, certifies and warrants as follows: (a) The Borrower has entered into contracts with third parties for the acquisition, construction and equipping of the Facilities obligating an expenditure in excess of 5% of the Net Sale Proceeds of the Bonds and the Borrower will proceed with due diligence in completing the Facilities and in allocating the Net Sale Proceeds of the Bonds to such Expenditures. (b) The Borrower will use a reasonable, Consistently Applied Accounting Method to account for Gross Proceeds, Investments and Expenditures for the Bonds. The Borrower shall additionally use a Consistently Applied Accounting Method for allocating Proceeds of the Bonds to Expenditures, subject to the Current Outlay of Cash rule. (c) The Borrower shall not commingle Proceeds of the Bonds with any other funds. (d) In connection with the Bonds, there has not been created or established and the Borrower does not expect that there will be created or established, any sinking fund, pledged fund or similar fund (other than as specifically identified in the Indenture), including without limitation any arrangement under which money, securities or obligations are pledged directly or indirectly to secure the Bonds or any contract securing the Bonds or any arrangement providing for compensating or minimum balances to be maintained by the Borrower with any registered owner or credit enhancer of the Bonds. (e) The allocation of Net Proceeds of the Bonds to the reimbursement portion of the costs of the Facilities will be made as of and completed on the Date of Issuance. The declaration of official intent required by ss. 1.150-2 of the Regulations with respect to Net Proceeds of the Bonds used to reimburse the Borrower for certain Capital Expenditures made in connection with the Facilities is attached hereto as Exhibit D. (f) The Borrower reasonably expects that 85% of the Net Sale Proceeds of the Bonds will be used to complete the Facilities within three years of the Date of Issuance and not more than 50% of the Proceeds of the Bonds will be invested in Nonpurpose Investments having a substantially guaranteed Yield for four years or more. The Borrower reasonably expects that the Net Sale Proceeds of the Bonds deposited to the Project Fund will be expended in accordance with the schedule contained in the No Arbitrage Certificate executed and delivered by the Issuer in connection with the issuance and delivery of the Bonds. (g) All funds and accounts established pursuant to the Indenture will be invested pursuant to the No Arbitrage Certificate executed by the Issuer on the Date of Issuance and the Investment Instructions delivered to the Issuer and the Borrower on the Date of Issuance. (h) The Borrower will not enter into and will not direct the Trustee to engage in any Abusive Arbitrage Devises. If the Borrower directs the Trustee to invest any of the Gross Proceeds in certificates of deposit or pursuant to an investment contract or a certificate of deposit, the Borrower will obtain and provide to the Trustee certifications in the form attached hereto as Exhibit B. (i) The Borrower hereby makes, and the Issuer hereby accepts, the following elections and other choices pursuant to the Regulations with respect to the Bonds: (i) The Borrower elects the bond year stated in the definition of the Bond Year. (ii) The Borrower elects to avail itself of all unrestricted yield investments granted in the Regulations for temporary period, reasonably required reserve fund and minor portion investments. (iii) The Borrower elects to treat the last day of the fifth Bond Year (March 31, 2004) as the initial Installment Computation Date and the initial rebate payment date. The Borrower elects to treat the last day of each subsequent fifth Bond Year as subsequent Installment Computation Dates and subsequent rebate payment dates. The Borrower may change or adjust such dates as permitted by the Regulations. (iv) With respect to the Universal Cap, the Borrower as of the Date of Issuance does not expect that the operation of the Universal Cap will result in a reduction or reallocation of Gross Proceeds of the Bonds and that the Borrower (A) does not expect to pledge funds (other than those described in the Indenture) to the payment of the Bonds; (B) expects to expend Sale Proceeds of the Bonds within the expected temporary periods; and (C) does not expect to retire any of the Bonds earlier than shown in the Yield computations for the Bonds pursuant to this Article IV.

Arbitrage Representations and Elections. In connection with the issuance of the Bonds, the Borrower hereby represents, certifies and warrants as follows: (a) The Borrower has entered into contracts with third parties for the acquisition, construction and equipping of the Facilities obligating an expenditure in excess of 5% of the Net Sale Proceeds of the Bonds and the Borrower will proceed with due diligence in completing the Facilities and in allocating the Net Sale Proceeds of the Bonds to such Expenditures. (b) The Borrower will use a reasonable, Consistently Applied Accounting Method to account for Gross Proceeds, Investments and Expenditures for the Bonds. The Borrower shall additionally use a Consistently Applied Accounting Method for allocating Proceeds of the Bonds to Expenditures, subject to the Current Outlay of Cash rule. (c) The Borrower shall not commingle Proceeds of the Bonds with any other funds. (d) In connection with the Bonds, there has not been created or established and the Borrower does not expect that there will be created or established, any sinking fund, pledged fund or similar fund (other than as specifically identified in the Indenture), including without limitation any arrangement under which money, securities or obligations are pledged directly or indirectly to secure the Bonds or any contract securing the Bonds or any arrangement providing for compensating or minimum balances to be maintained by the Borrower with any registered owner or credit enhancer of the Bonds, except the Interest Collateral Account. (e) The allocation of Net Proceeds of the Bonds to the reimbursement portion of the costs of the Facilities will be made as of and completed on the Date of Issuance. The declaration of official intent required by ss. (S) 1.150-2 of the Regulations with respect to Net Proceeds of the Bonds used to reimburse the Borrower for certain Capital Expenditures made in connection with the Facilities is attached hereto as Exhibit D. (f) The Borrower reasonably expects that 85% of the Net Sale Proceeds of the Bonds will be used to complete the Facilities within three years of the Date of Issuance and not more than 50% of the Proceeds of the Bonds will be invested in Nonpurpose Investments having a substantially guaranteed Yield for four years or more. The Borrower reasonably expects that the Net Sale Proceeds of the Bonds deposited to the Project Fund will be expended in accordance with the schedule contained in the No Arbitrage Certificate executed and delivered by the Issuer Authority in connection with the issuance and delivery of the Bonds. (g) All funds and accounts established pursuant to the Indenture will be invested pursuant to the No Arbitrage Certificate executed by the Issuer Authority on the Date of Issuance and the Investment Instructions delivered to the Issuer Authority and the Borrower on the Date of Issuance. (h) The Borrower will not enter into and will not direct the Trustee to engage in any Abusive Arbitrage Devises. If the Borrower directs the Trustee to invest any of the Gross Proceeds in certificates of deposit or pursuant to an investment contract or a certificate of deposit, the Borrower will obtain and provide to the Trustee certifications in the form attached hereto as Exhibit B. (i) The Borrower hereby makes, and the Issuer Authority hereby accepts, the following elections and other choices pursuant to the Regulations with respect to the Bonds: (i) The Borrower elects the bond year stated in the definition of the Bond Year. (ii) The Borrower elects to avail itself of all unrestricted yield investments granted in the Regulations for temporary period, reasonably required reserve fund and minor portion investments. (iii) The Borrower elects to treat the last day of the fifth Bond Year (March 31September 30, 20042003) as the initial Installment Computation Date and the initial rebate payment date. The Borrower elects to treat the last day of each subsequent fifth Bond Year as subsequent Installment Computation Dates and subsequent rebate payment dates. The Borrower may change or adjust such dates as permitted by the Regulations. (iv) With respect to the Universal Cap, the Borrower as of the Date of Issuance does not expect that the operation of the Universal Cap will result in a reduction or reallocation of Gross Proceeds of the Bonds and that the Borrower (A) does not expect to pledge funds (other than those described in the Indenture) to the payment of the Bonds; (B) expects to expend Sale Proceeds of the Bonds within the expected temporary periods; and (C) does not expect to retire any of the Bonds earlier than shown in the Yield computations for the Bonds pursuant to this Article IV.

Arbitrage Representations and Elections. In connection with the issuance of the Bonds, the Borrower hereby represents, certifies and warrants as follows: (a) The Borrower has entered into contracts with third parties for the acquisition, construction and equipping of the Facilities obligating an expenditure in excess of 5% of the Net Sale Proceeds of the Bonds and the Borrower will proceed with due diligence in completing the Facilities and in allocating the Net Sale Proceeds of the Bonds agrees to such Expenditures. (b) The Borrower will use a reasonable, Consistently Applied Accounting Method to account for Gross Proceeds, Proceeds and the Investments and Expenditures for of the BondsProceeds. The Borrower shall additionally agrees to use a Consistently Applied Accounting Method for allocating Proceeds of the Bonds to Expenditures, subject to the Current Outlay of Cash rule. (cb) The Issuer and the Borrower shall each agrees, to the extent within its control, not to commingle Proceeds of the Bonds with any other fundsmoneys, funds or accounts owned, controlled or otherwise maintained by it. (dc) In connection with the issuance of the Bonds, there has not been created or established established, and the Borrower does not expect that there will be created or established, any sinking fund, pledged fund or similar fund (other than as specifically identified in the Indenturethis Tax Compliance Agreement), including without limitation limitation, any arrangement under which money, securities or obligations are pledged directly or indirectly to secure the Bonds or any contract securing the Bonds or any arrangement providing for compensating or minimum balances to be maintained by the Borrower with any registered owner or credit enhancer of the Bonds. (ed) The allocation of Net Proceeds of the Bonds to the reimbursement portion of the costs of the Facilities Issuer will be made as of and completed on the Date of Issuance. The declaration of official intent required by ss. 1.150-2 of the Regulations with respect to Net Proceeds of the Bonds used to reimburse the Borrower for certain Capital Expenditures made in connection with the Facilities is attached hereto as Exhibit D. (f) The Borrower reasonably expects that 85% of the Net Sale Proceeds of the Bonds will be used to complete the Facilities within three years of the Date of Issuance and not more than 50% of the Proceeds of the Bonds will be invested in Nonpurpose Investments having a substantially guaranteed Yield for four years or more. The Borrower reasonably expects that the Net Sale Proceeds of the Bonds deposited to the Project Fund will be expended in accordance with the schedule contained in the No Arbitrage Certificate executed and delivered by the Issuer in connection with the issuance and delivery of the Bonds. (g) All funds and accounts established pursuant to the Indenture will be invested pursuant to the No Arbitrage Certificate executed by the Issuer on the Date of Issuance and the Investment Instructions delivered to the Issuer knowingly, and the Borrower on the Date of Issuance. (h) The Borrower will not not, enter into and will not direct the Trustee to or engage in any Abusive Arbitrage DevisesDevices with respect to the Bonds. If the Issuer or the Borrower directs the Trustee to invest any of the Gross Proceeds in certificates of deposit or pursuant to an investment contract or a certificate of depositcontract, the Borrower Issuer or the Borrower, as applicable, will obtain and provide to the Trustee certifications in the form attached hereto as Exhibit B. (i) The Borrower hereby makes, and forms necessary to comply with safe harbors for establishing the Issuer hereby accepts, the following elections and other choices pursuant to the Regulations with respect to the Bonds: (i) The Borrower elects the bond year stated in the definition of the Bond YearFair Market Value thereof. (iie) The Borrower Borrower, on behalf of the Issuer, elects to avail itself the Bonds of all unrestricted yield investments granted in the Regulations for temporary periodperiods, reasonably required reserve fund funds and minor portion investmentsinvestments that are part of the Minor Portion. (iiif) The Borrower Borrower, on behalf of the Issuer, elects to treat the last day of the fifth Bond Year (March December 31, 20042026) as the initial Installment Computation Date and the initial rebate payment date. The Borrower elects date and to treat the last day of each subsequent fifth Bond Year as subsequent Installment Computation Dates and subsequent rebate payment dates. The Borrower Such dates may change be changed or adjust such dates adjusted as permitted by the Regulations. (ivg) With respect to the Universal Captwo-year spending exception to the Rebate Requirement (summarized in Exhibit D hereto), the Borrower as of sets forth the Date of Issuance does not expect that the operation of the Universal Cap will result in a reduction or reallocation of Gross Proceeds of the Bonds and that the Borrower (A) does not expect to pledge funds (other than those described in the Indenture) to the payment of the Bonds; (B) expects to expend Sale Proceeds of the Bonds within the expected temporary periods; and (C) does not expect to retire any of the Bonds earlier than shown in the Yield computations for the Bonds pursuant to this Article IV.following matters: