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<br /> <br /> <br /> <br /> <br /> <br /> (e) to refrain from taking any action that would result in the Certificates of <br /> Obligation being "federally guaranteed" within the meaning of Section 149(b) of the Code; <br /> <br /> (f) to refrain from using any portion of the proceeds of the Certificates of Obligation, <br /> directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, <br /> to acquire investment property (as defined in Section 148(b)(2) of the Code) which produces <br /> a materially higher yield over the term of the Certificates of Obligation, other than <br /> investment property acquired with <br /> <br /> (1) proceeds of the CertiScates of Obligation invested for a reasonable temporary <br /> period of 3 years or less or, in the case of a refunding bond, for a period of 30 days <br /> or less until such proceeds are needed for the purpose for which the Certificates of <br /> Obligation are issued, <br /> <br /> (2) amounts invested in a bona fide debt service fund, within the meaning of Section <br /> 1.148-1(b) of the Treasury Regulations, and <br /> <br /> (3) amounts deposited in any reasonably required reserve or replacement fund to <br /> the extent such amounts do not exceed 10 percent of the proceeds of the Certificates <br /> of Obligation; <br /> <br /> (g) to otherwise restrict the use of the proceeds of the Certificates of Obligation or <br /> amounts treated as proceeds of the Certificates of Obligation, as may be necessary, so that <br /> the Certificates of Obligation do not otherwise contravene the requirements of Section 148 <br /> of the Code (relating to arbitrage) and, to the extent applicable, Section 149(d) of the Code <br /> (relating to advance refundings); <br /> <br /> (h) to pay to the United States of America at least once during each five-year period <br /> (beginning on the date of delivery of the Certificates of Obligation) an amount that is at <br /> least equal to 90 percent of the "Fxcess Eamings," within the meaning of Section 148(f) of <br /> the Code and to pay to the United States of America, not later than 60 days after the <br /> CertiScates of Obligation have been paid in full, 100 percent of the amount then required <br /> to be paid as a result of Excess Earnings under Section 148(f) of the Code; and <br /> <br /> (i) to maintain such records as will enable the Issuer to fulfill its responsibilities <br /> under this Section and Section 148 of the Code and to retain such records for at least six <br /> years following the Snal payment of principal and interest on the Certificates of Obligation. <br /> <br /> It is the understanding of the Issuer that the covenants contained herein are intended <br /> to assure compliance with the Code and any regulations or rulings promulgated by the U.S. <br /> Department of the Treasury pursuant thereto. In the event that regulations or rulings are <br /> hereafter promulgated which modify or expand provisions of the Code, as applicable to the <br /> Certificates of Obligation, the Issuer will not be required to comply with any covenant <br /> contained herein to the extent that such failure to comply, in the opinion of nationally-rec- <br /> <br /> 29 <br />