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<br /> <br /> <br /> <br /> <br /> <br /> which praduces a materially higher yield over the term of the Certificates of Obligation, <br /> other than investment property acquired with <br /> <br /> (1) proceeds of the Certificates of Obligation invested for a reasonable <br /> temporary period of 3 years or less or, in the case of a refunding bond, for a period <br /> of 30 days or less until such proceeds are needed for the purpose for which the bonds <br /> are issued, <br /> <br /> (2) amounts invested in a bona fide debt service fund, within the meaning <br /> of Section 1.103-13(b)(12) of the Treasury Regulations, and <br /> <br /> (3) amounts deposited in any reasonably required reserve or replacement <br /> fund to the extent such amounts do not exceed 10 percent of the proceeds of the <br /> Certificates of Obligation; (g) to otherwise restrict the use of the proceeds of the Certificates of Obligation <br /> <br /> <br /> or arnounts treated as proceeds of the Certificates of Obligation, as may be necessary, so <br /> that the Certificates of Obligation do not otheiwise contravene the requirements of Section <br /> 148 of the Code (relating to arbitrage) and, to the extent applicable, Section 149(d) of the <br /> Code (relating to advance refundings); <br /> <br /> (h) to pay to the United States of America at least once during each five-year <br /> period (beginning on the date of delivery of the Certificates of Obligation) an amount that <br /> is at least equal to 90 percent of the "Fxcess Earnings," within the meaning of Section 148(f) <br /> of the Code and to pay to the United States of America, not later than 60 days after the <br /> Certificates 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(o 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 final payment of principal and interest on the Certificates of Obligation. <br /> <br /> In order to facilitate compliance with the above covenants (g), (h), and (i), a"Rebate <br /> Fund" is hereby established by the Issuer for the sole benefit of the United States of <br /> America, and such Fund shall not be subject to the claim of any other person, including <br /> without limitation the bondholders. The Rebate Fund is established for the additional <br /> purpose of compliance with Section 148 of the Code. <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 pravisions 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 modification or expansion, in the opinion of <br /> <br /> 25 <br />