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—. .^ <br />for each receipt and expenditiue of such Gross Proceeds and the obligations ,4,,, <br />acquired therewith; <br />b. calculate the Rebate Amount with respect to its Loan, not less frequently than <br />each Computation Date, in accordance with rules set forth in § 148( fl of the Code, <br />§ 1.148-3 of the Regulations, and the rulings thereunder. The City shall maintain a <br />copy of such calculations for at least six years after the final Computation Date; <br />c. as additional consideration for the making of the Loan, and in order to induce the <br />making of the Loan by measures designed to ensure the excludability of the <br />interest on the TWDB's Source Series Bonds from the gross income of the <br />owners thereof for federal income tax pwposes, pay to the United States the <br />amount described in paragraph (b) above within 30 days after each Computation <br />Date; <br />d. exercise reasonable diligence to assure that no errors are made in the calculations <br />required by paragraph (b) and, if such error is made, to discover and promptly to <br />correct such error within a reasonable amount of time thereafter, including <br />payment to the United States of any interest and any penalty required by the <br />Regulations; <br />23. the Obligations must include a provision prohibiting the City &om taking any action that <br />would cause the interest on the Obligations ta be includable in gross income for federal <br />income tax purposes; <br />24. the Obligations must provide that the City will not cause or permit the Obligations to be <br />treated as "federally guaranteed" obligations within the meaning of § 149(b) of the <br />Internal Revenue Code; <br />25. the transcript must include a No Arbitrage Certificate or similar Federal Tax Certificate <br />setting forth the City's reasonable expectations regazding the use, expenditure and <br />investrnent of the proceeds of the Obligarions; <br />26. the transcript must include evidence that the information reporting requirements of <br />§149(e) of the Internal Revenue Code of 1986 will be satisfied. This requirement may be <br />satisfied by filing an IRS Form 8038 with the Internal Revenue Service. In addition, a <br />completed IRS form 8038 or other evidence that the information reporting requirements <br />of § 149(e) have been satisfied must be pmvided to the Executive Administrator within <br />fourteen (14) days of closing. The Executive Administrator may withhold the release of <br />funds for failure to comply; <br />27. the Obligations must provide that the City will not acquire any of the TWDB's Source <br />Series Bonds in an amount related to the amount of the Obligations to be acquired from <br />such City by the TWDB; —°'' <br />6 <br />Exhibit A, Page 7 of 10 <br />