RESTRICTION ON USE OF CONSTRUCTION FUND Sample Clauses

RESTRICTION ON USE OF CONSTRUCTION FUND. The Company (i) shall not use or direct the use of moneys from the Construction Fund in any way, or take or omit to take any other action, so as to cause the interest on any Bonds to become subject to Federal income tax, (ii) shall not use more than 2% of the proceeds of the Bonds for costs of issuance thereof, (iii) shall use at least 95% of the proceeds of the Bonds for Costs constituting land or property of a character subject to an allowance for depreciation for federal tax purposes within the meaning of Section 167 of the Code, and (iii) shall not use the proceeds of the Bonds to acquire, construct or install facilities, the nature of which would cause the interest on the Bonds to become subject to federal income tax.
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Related to RESTRICTION ON USE OF CONSTRUCTION FUND

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  • Definitions Certain Rules of Construction As used herein, the following terms will have the following meanings:

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