Tax-Exempt Status of Lease–General Representation and Covenants. In order to maintain the exclusion of the interest component of Rental Payments payable under the Lease from gross income for federal income tax purposes, the Issuer (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 Lease Proceeds or other funds of either party 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 Assets or any Benefitted Facilities, in a manner that would cause any portion of the Lease to become a “private activity bond” as defined in Code § 141.
Tax-Exempt Status of Lease–General Representation and Covenants. In order to maintain the exclusion of the Interest Portion of Rental Payments payable under the Lease from gross income for federal income tax purposes, Lessee (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 Lease proceeds or other funds of either party 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 Assets in a manner that would cause any portion of the Lease to become a “private activity bond” as defined in Code § 141.
