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Account after completion of the Project into the Project Fund to pay interest on the Bonds at the
written direction of the Lender. Funds in the Capitalized Interest Account may be invested without
yield restriction.
(i) No Other Funds as Security. Other than as described above there are no
funds or accounts established by the Issuer or the Borrower pursuant to the Trust Indenture or
otherwise that are reasonably expected to be used to pay debt service on the Bonds or pledged
(including negative pledges) as collateral for the Bonds and for which there is a reasonable
assurance that amounts on deposit therein will be available to pay debt service on the Bonds if the
Borrower encounters financial difficulty.
(j) Replacement Proceeds. Replacement proceeds (as such term is defined in
Treasury Regulation Section 1.148-1(c)), if any, may be invested at an unrestricted yield for a
period of 30 days beginning on the date that the amounts are first treated as replacement proceeds
and, thereafter, shall be invested at a yield not in excess of the yield on the Bonds plus 0.001%.
Earnings on such amounts may be invested at an unrestricted yield for a period not to exceed one
year from the date of receipt of the amount earned and, thereafter, shall be invested at a yield not
in excess of the yield on the Bonds plus 0.001%.
Section 4.5 Yield. The Bonds are a variable yield issue (as such term is defined in the
Treasury Regulations). For purposes of this Tax Certificate, the Issuer and the Borrower have
been advised that the term "yield" means (i) with respect to a variable yield issue [such as the
Bonds], the yield computed pursuant to Section 1.148-4 of the Treasury Regulations separately for
each computation period (as referred to in subparagraph (d) below), including in such computation
all payments properly attributable to each such computation period of principal and interest on the
Bonds, fees paid and reasonably expected to be paid for a Qualified Guarantee (as defined in
Section 1.148-4(f) of the Treasury Regulations) on the Bonds and amounts properly allocable to a
Qualified Hedge (as defined in Section 1.148-4(h)(2) of the Treasury Regulations), and (ii) with
respect to obligations acquired with amounts described in Section 4.4 hereof, that discount rate
that, when used in computing the present value as of the date the investment is first allocated to
Gross Proceeds (as defined in Part V of this Tax Certificate) of all unconditionally payable receipts
from the investment, produces an amount equal to the present value using the same discount factor
as the amounts actually or constructively paid for such obligation. The yield on obligations
acquired with amounts described in Section 4.4 hereof and the yield on the Bonds will be
calculated by the use of the same frequency interval of compounding interest.
(a) Issue Price. For purposes of calculating yield, the issue price of the Bonds
is the first price at which at least 10% of each maturity of the Bonds was sold to the public unless
the "hold-the offering-price" rule applies, as described in Treas. Reg. Section 1.148-1(f). The issue
price of the Bonds determined as set forth in the preceding sentence, based on the certificates from
the Underwriter attached hereto as Exhibit E, is $23,000,000 (representing the principal amount
of the Bonds).
(b) Qualified Guarantee. Fees properly allocable to payments for a qualified
guarantee for an issue of tax-exempt bonds are treated as additional interest on that issue for
purposes of computing the yield thereon under Treasury Regulations Section 1.148-4(f). However,
no qualified guarantees are expected to be procured to provide credit enhancement for the Bonds.
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