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(c) Qualified Hedge. Payments made or received under a qualified hedge (as
defined in Treasury Regulations Section 1.148-4(h)) are taken into account in determining the
yield on an issue. As of the date hereof, the Issuer has not taken the steps necessary to cause any
hedge with respect to the Bonds to be a qualified hedge.
(d) Computation Periods. The yield on the Bonds is computed separately for
each computation period. A computation period is the period between computation dates with
respect to the Bonds (a "Computation Period"). The Issuer may treat the last day of any Bond
Year ending on or before July __, 2027 (the "first required payment date"), as a computation
date with respect to the Bonds. After the first required payment date, the Issuer must consistently
treat either the last day of each Bond Year or the last day of each fifth Bond Year or the maturity
date of the Bonds, if earlier, as a computation date (the "Computation Date") and may not change
the Computation Date after the first required payment date.
Section 4.6 Yield Reduction Payments. Notwithstanding any of the provisions of
Section 4.4 above that require the Issuer to invest Sale Proceeds and any related investment
proceeds at a yield not in excess of the yield on the Bonds, the yield on certain investments
acquired with proceeds of the Bonds will not be considered to be higher than the applicable yield
limitation described in Section 4.4 above if the Issuer makes or causes to be made "yield reduction
payments" to the United States Treasury at the time and in the amounts described in Section 1.148-
5(c) of the Treasury Regulations. The Borrower covenants to consult with Bond Counsel prior to
making any "yield reduction payment" under Section 1.148-5(c) of the Treasury Regulations.
Section 4.7 Universal Cap. Notwithstanding any restrictions on the investment of
proceeds of the Bonds and other amounts set forth in Section 4.4 of this Tax Certificate, proceeds
of the Bonds and other amounts treated as proceeds of the Bonds are allocated and remain allocated
to the Bonds, and are thereby subject to the restrictions contained in this Tax Certificate, only to
the extent that the value of such proceeds does not exceed the value of the outstanding obligations
of Bonds.
Section 4.8 No Replacement. No portion of the Sale Proceeds will be used as a
substitute for funds that have a sufficiently direct nexus to the Bonds or the governmental purpose
of the Bonds such that one could reasonably conclude that the funds would have been used for the
governmental purpose if the proceeds of the Bonds were not used or to be used for that
governmental purpose (such funds being "replacement proceeds"). The mere availability or
preliminary earmarking of amounts for a governmental purpose does not in itself establish a
sufficient nexus to cause those amounts to be replacement proceeds. Any amounts that do
constitute replacement proceeds as described in the previous sentence will not be used to acquire
directly or indirectly securities or obligations or other investment property producing a yield in
excess of the yield on the Bonds. To the extent the Borrower has received amounts that are
dedicated to pay for costs of the Project, it has sized the Bonds to account for such amounts. If the
Borrower receives future amounts for the Project, it will, use such amounts to pay for costs of the
Project that are not otherwise financed by proceeds of the Bonds, or will use such amounts to pay
interest and principal on the Bonds on the earliest possible date, and at all times will not invest
such amounts at a yield in excess of the yield on the Bonds.
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