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Section 4.9 No Abusive Arbitrage Device. Neither the Borrower nor the Issuer have
engaged in or will engage in a transaction or series of transactions enabling it to exploit the
difference between tax-exempt and taxable interest rates to gain a material financial advantage and
which increases the burden on the market for tax-exempt obligations, including selling obligations
that would not otherwise be necessary or issuing obligations sooner or allowing them to remain
outstanding longer than would otherwise be necessary. No device has been or will be employed
in connection with the issuance of the Bonds in order to obtain a material financial advantage
(based on arbitrage) apart from savings attributable to lower interest rates.
Section 4.10 Single Issue for Arbitrage Purposes. The Bonds have been sold to the
Underwriter and are being issued on the same date pursuant to a similar plan of financing and will
be paid out of substantially the same source of funds as the Project. Except with respect to the
$23,000,000 Newport News Redevelopment and Housing Authority Multifamily Housing
Revenue Bonds (Stuart Gardens I Project) Series 2026 (the “Phase I Project”) that is being
developed and financed separately from the Project, and which is not being undertaken by the
Borrower pursuant to the same identical plan of financing for the Bonds, therefore no other
governmental obligations have been, or will be, sold within fifteen (15) days of the sale date of the
Bonds, pursuant to a similar plan of financing as the Bond and will not be paid out of substantially
the same source of funds as the Bond. Both the Project and the Phase I Project will be treated
separately, but calculated as a single issue for arbitrage purposes.
Section 4.11 Covenants as to Arbitrage. The Issuer and Borrower agree that so long as
any of the Bonds remain outstanding, money on deposit in any fund or account maintained in
connection with the Bonds, whether or not such money was derived from the proceeds of the sale
of the Bonds or from any other sources, will not be used in a manner that would cause the Bonds
to be "arbitrage bonds" (within the meaning of Section 148 of the Code and applicable regulations
promulgated from time to time thereunder). The Issuer and Borrower shall observe and not violate
the requirements of Section 148 of the Code and any such applicable regulations.
PART V REBATE
Section 5.1 General. The Borrower recognizes that, unless an exception is met, Section
148(f) of the Code requires that an amount equal to the sum of (i) the excess of the aggregate
amount earned on all Nonpurpose Investments (defined below) over the amount that would have
been earned if such Nonpurpose Investments had a yield equal to the yield with respect to the
Bonds, plus (ii) any income attributable to the excess described in (i), be paid to the United States
Treasury (the "Rebate Requirement"). The Borrower covenants to comply with the Rebate
Requirement as set forth in Section 148(f) of the Code and the Treasury Regulations.
For purposes of this Tax Certificate (including determining the Rebate Requirement), the
term "Bond Year" shall mean each one-year (or shorter) period ending on a date chosen by the
Borrower. If no date is selected before the earlier of the final maturity date or the date that is five
years from the Issue Date, each Bond Year ends on the anniversary date of the Issue Date and on
the final maturity date.
Section 5.2 Nonpurpose Investments. The rules contained in this Part V relate to the
requirement to comply with the provisions of Section 148(f) of the Code and the Treasury
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