Common use of Funding Loan Not a Hedge Bond Clause in Contracts

Funding Loan Not a Hedge Bond. The Borrower covenants and agrees that not more than 50% of the proceeds of the Funding Loan will be invested in Nonpurpose Investments having a substantially guaranteed Yield for four years or more within the meaning of Section 149(f)(3)(A)(ii) of the Code, and the Borrower reasonably expects that at least 85% of the spendable proceeds of the Funding Loan will be used to carry out the governmental purposes of the Funding Loan within the three-year period beginning on the Closing Date.

Funding Loan Not a Hedge Bond. The Borrower covenants and agrees that not more than fifty percent (50% %) of the proceeds of the Funding Loan will be invested in Nonpurpose Investments having a substantially guaranteed Yield for four (4) years or more within the meaning of Section 149(f)(3)(A)(ii) of the Code, and the Borrower reasonably expects that at least eighty five percent (85% %) of the spendable proceeds of the Funding Loan will be used to carry out the governmental purposes of the Funding Loan within the three-three (3) year period beginning on the Closing Date.