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similar costs. General overhead costs and similar indirect costs of the Issuer or the Borrower, such
as employee salaries and office expenses and costs associated with computing the Rebate
Requirement are not qualified administrative costs. In general, administrative costs are not
reasonable unless they are comparable to administrative costs that would be charged for the same
investment or a reasonably comparable investment if acquired with a source of funds other than
gross proceeds of tax-exempt bonds. The Borrower agrees to maintain records for each such
obligation sufficient to establish that the purchase price and the disposition price of each
Nonpurpose Investment is Fair Market Value.
Section 5.6 Record Keeping. With respect to all Nonpurpose Investments acquired in
any fund or account established and held by the Borrower, or by the Trustee on behalf of or for the
benefit of the Borrower, the entity in custody of such fund or account or for whose benefit the fund
or account is held shall record or cause to be recorded the following information: (i) purchase
date, (ii) purchase price, (iii) information establishing that the purchase price is the fair market
value as of such date (e.g., the published quoted bid by a dealer in such an investment on the date
of purchase), (iv) any accrued interest paid, (v) face amount, (vi) coupon rate, (vii) periodicity of
interest payments, (viii) disposition price, (ix) any accrued interest received, and (x) disposition
date. To the extent any investment becomes a Nonpurpose Investment by becoming Gross
Proceeds after it was originally purchased, it shall be treated as if it were acquired at its fair market
value at the time it becomes a Nonpurpose Investment. To the extent any investment ceases to be
a Nonpurpose Investment by ceasing to be Gross Proceeds prior to the date it is disposed of or
matures, it shall be treated as if it were disposed of at its fair market value at the time it ceased to
be a Nonpurpose Investment.
Section 5.7 Retention of Records. Amounts determined to be required to be paid to the
United States in compliance with the Rebate Requirement shall be paid by the Borrower to the
United States in accordance with the rules set forth in the Treasury Regulations. Records of all
determinations made hereunder shall be retained by the Borrower or by the Trustee, on behalf of
or for the benefit of the Borrower until three years after the complete retirement of the Bonds.
Section 5.8 Bona Fide Debt Service Fund Exception. Moneys in a bona fide debt
service fund shall not be taken into account for a Bond Year if the gross earnings thereon are less
than $100,000; an issue with an average annual debt service not in excess of $2,500,000, may be
treated as satisfying this $100,000 limitation.
Section 5.9 Engagement of Experts. The Borrower covenants that it will engage a firm
nationally recognized in the calculation of rebate, to perform the calculations necessary to comply
with the Rebate Requirement, as set forth in Section 148(f) of the Code and the Treasury
Regulations.
Section 5.10 Survival of Bonds. Notwithstanding anything in this Tax Certificate to the
contrary, the obligations set forth in this Part V shall survive the defeasance or payment in full of
the Bonds.
Section 5.11 Payment of Rebate. The Issuer will pay, from amounts provided by the
Borrower, the amount determined to be required to be paid to the United States in compliance with
the Rebate Requirement. Each payment shall be made not later than sixty (60) days after each
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