Borrower’s Tax Covenants. The Borrower represents and covenants that:
(a) The Borrower will not take any action or omit to take any action, which action or omission will adversely affect the excludability from gross income of the interest on the Tax-Exempt Bonds for federal income tax purposes or cause the interest on the Tax-Exempt Bonds, or any portion thereof, to become an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations under the Code, and in the event of such action or omission, it will, promptly upon having such brought to its attention, take such reasonable actions based upon an opinion of Bond Counsel, and in all cases at the sole expense of the Borrower, as may rescind or otherwise negate such action or omission. The Borrower will not, directly or indirectly, use or permit the use of any Bond Proceeds of the Series 2023 Bonds or any other funds of the Borrower, or take or omit to take any action, that would cause the Tax-Exempt Bonds to be or become “arbitrage bonds” within the meaning of Section 148(a) of the Code (or their statutory predecessor) or to fail to meet any other applicable requirements of the Code (or their statutory predecessor). To that end, the Borrower will comply with the provisions of the Tax Certificate and all applicable requirements of the Code (or their statutory predecessor) to the extent applicable to the Tax-Exempt Bonds. In the event that at any time the Borrower is of the opinion that, for purposes of this Section 2.03, it is necessary to restrict or limit the yield on the investment of any moneys held by the Trustee or otherwise, the Borrower shall so instruct the Trustee in writing.
(b) The Issuer and the Borrower hereby covenant and agree that they shall not enter into any arrangement, formal or informal, pursuant to which the Borrower (or any “related party,” as defined in Section 1.150-1(b) of the Treasury Regulations) shall purchase the Tax-Exempt Bonds. This covenant shall not prevent the Borrower from purchasing Bonds in the open market for the purpose of tendering them to the Trustee for purchase and retirement.
(c) The Borrower has received a Determination Letter classifying the Borrower as an organization (i) described in Section 501(c)(3) of the Code which is exempt from federal income taxation under Section 501(a) of the Code (except with respect to “unrelated business taxable income” within the meaning of Section 512(a) of the Code) and (ii) which is not a “private foundat...
Borrower’s Tax Covenants. The Borrower represents and warrants that the representations of the Borrower contained in Section 2.03 of the Original Loan Agreement are true and correct as of the date hereof and the Borrower has not breached any of its covenants contained in Section 2.03 of the Original Loan Agreement. As of the date hereof, the Borrower affirms the representations and agrees to be bound by covenants made by the Borrower in Section 2.03 the Original Loan Agreement and agrees that such representations and covenants shall be construed and read to include and relate to the Series 2024 Bonds and the Series 2024 Project, as applicable. All covenants and obligations of the Borrower contained in Section 2.03 of the Original Loan Agreement shall remain in effect and be binding upon the Borrower until all Series of Tax‑Exempt Bonds have been paid, notwithstanding any earlier termination of the Loan Agreement or any provision for payment of principal of and premium, if any, and interest on the outstanding Series of Bonds and Loan Payments and release and discharge of the Indenture.
Borrower’s Tax Covenants. The Borrower represents and warrants that the representations of the Borrower contained in Section 2.03 of the Original Loan Agreement are true and correct as of the date hereof and the Borrower has not breached any of its covenants contained in Section 2.03
