Common use of Eighteen Month Exception Clause in Contracts

Eighteen Month Exception. The Rebate Requirement described in Section 4(d) hereof shall not apply to the Gross Proceeds of the Bonds if the following percentages (the "QUALIFYING EXPENDITURES") of such Gross Proceeds are expended for the governmental purposes of the Bonds by the last day of each of the periods identified below (the "QUALIFYING DATES"). The governmental purposes of the Bonds includes (A) payments of interest on but no payments of principal of the Bonds, (B) payments of interest on other obligations of the Authority issued for the benefit of the Company, which interest either (i) accrues on such other obligations during a one-year period including the Delivery Date, (ii) is a capital expenditure as defined in Treasury Regulations Section 1.150-1(b), or (iii) is a de minimis Working Capital Expenditure, and (C) payments of costs of issuance made from earnings on Gross Proceeds. For this purpose, Gross Proceeds has the meaning set forth in Appendix One to this Certificate, except that it does not include (i) amounts held in a bona fide debt service fund, (ii) amounts held in a reasonably required reserve or replacement fund, and (iii) amounts that, as of the Delivery Date, are not reasonably expected to be Gross Proceeds, but that become Gross Proceeds after the end of the eighteen-month period. --------------------------------------------------------------------------------