Tax-Exempt Status of Bonds–General Covenant. In order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, the District (1) will take whatever action, and refrain from whatever action, necessary to comply with the applicable requirements of the Code, (2) will not use or invest, or permit the use or investment of, any Bond proceeds or other Gross Proceeds of the Bonds in a manner that would violate applicable provisions of the Code, and (3) will not use, or permit the use of, any portion of any of the Financed Facilities in a manner that would violate applicable provisions of the Code.
Tax-Exempt Status of Bonds–General Covenant. The County (to the extent within its power or direction) will not use any money on deposit in any fund or account maintained in connection with the Bonds, whether or not such money was derived from the proceeds of the sale of the Bonds or from any other source, in a manner that would cause the Bonds to be “arbitrage bonds,” within the meaning of Code § 148, and will not (to the extent within its power or direction) otherwise use or permit the use of any Bond proceeds or any other funds of the County, directly or indirectly, in any manner, or take or permit to be taken any other action or actions, that would cause interest on the Bonds to be included in gross income for federal income tax purposes.
Tax-Exempt Status of Bonds–General Covenant. In order to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes, the Corporation (1) will take whatever action, and refrain from whatever action, necessary to comply with the applicable requirements of the Code, (2) will not use or invest, or permit the use or investment of, any Bond proceeds, other money held under the Bond Indenture, or other funds of the Corporation, in a manner that would violate applicable provisions of the Code; and (3) will not use, or permit the use of, any portion of the Financed Facility in a manner that would violate applicable provisions of the Code. In managing operations of the Financed Facility, TA will assist the Corporation in meeting the above covenants as provided in Exhibit I.
Tax-Exempt Status of Bonds–General Covenant. The Issuer (to the extent within its power or direction) will not use any money on deposit in any fund or account maintained in connection with the Bonds, whether or not such money was derived from the proceeds of the sale of the Bonds or from any other source, in a manner that would cause the Bonds to be “arbitrage bonds,” within the meaning of Code § 148, and will not (to the extent within its power or direction) otherwise use or permit the use of any Bond proceeds or any other funds of the Issuer, directly or indirectly, in any manner, or take or permit to be taken any other action or actions, that would cause interest on the Bonds to be included in gross income for federal income tax purposes.
