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computation date. Each payment, when added to all previous rebate payments with respect to the
Bonds, must be in an amount not less than ninety percent (90%) of the Rebate Requirement as of
each computation date. All of the Rebate Requirement must be paid to the United States within
sixty (60) days after the final maturity date of the Bonds. Payment shall be made to the applicable
Internal Revenue Service and be accompanied by Form 8038-T.
Section 5.12 Expenditure Exceptions. The Bonds will not be subject to rebate if they
meet one of the rebate exceptions described in Section 148 of the Code.
PART VI OTHER MATTERS
Section 6.1 No Pooled Financing Bond. No portion of the proceeds derived from the
sale of the Bonds will be used, directly or indirectly, to make or finance loans to any borrower
other than the Borrower.
Section 6.2 No Hedge Bond. The Borrower reasonably expects that at least 85% of the
spendable proceeds of the Bonds will be used to carry out the governmental purpose of the issue
within the three (3) year period beginning on the date hereof. Additionally, not more than fifty
percent (50%) of the proceeds of the Bonds will be invested in nonpurpose investments having a
substantially guaranteed yield for four years or more.
Section 6.3 No Federal Guarantee. The Borrower will not, directly or indirectly, use
or permit the use of any proceeds of the Bonds, or take or omit to take any action, that would cause
the Bonds to be considered "federally guaranteed" within the meaning of Section 149(b) of the
Code.
Section 6.4 Change in Use. The Borrower reasonably expects that the property
financed with the proceeds of the Bonds will be used as a "qualified residential rental project"
within the meaning of Section 142(a)(7) of the Code during the term during which the Bonds are
outstanding. The Borrower further represents, warrants and covenants that such use will not
change unless an opinion of Bond Counsel is received with respect to such proposed change in use
of the proceeds of the Bonds or the Project.
Section 6.5 Twenty-Five Percent (25%) Test. The Borrower hereby covenants to utilize
twenty five percent (25%) or more of the Sales Proceeds derived from the purchase of the Note to
finance the aggregate basis of the rehabilitation, renovation, construction, improvement and
equipping of the Project.
Section 6.6 Information Reporting. The Issuer and the Borrower certify that the
information required by Section 149(e) of the Code and set forth in Internal Revenue Service Form
8038 relating to the Bonds (a copy of which is attached as Exhibit F hereto) was provided to the
Issuer by the Borrower and reflects the reasonable expectations of the Borrower with respect to
the Bonds and the proceeds thereof as of the date of this certificate.
Section 6.7 Reimbursement. No Sale Proceeds are expected to be applied to reimburse
the Borrower for costs incurred and paid with funds of the Borrower prior to the date hereof (the
"Expenditures").
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