Common use of Use of the Proceeds Clause in Contracts

Use of the Proceeds. The Borrower shall apply the proceeds of the Loan from the District solely as follows: (a) The Borrower shall apply the proceeds of the Loan solely to the financing, refinancing or reimbursement of the costs of the Project as set forth in Appendix A hereto. The Loan will be disbursed in accordance with Article IV hereof. Unless the Project has been completed prior to closing, the Borrower agrees to construct the Project with all reasonable dispatch and to use all reasonable efforts to cause such construction to be completed and the Committed Amount expended for the costs of the Project as soon as reasonably possible. (b) No portion of the proceeds of the Loan shall be used to reimburse the Borrower for costs paid prior to the date of this Loan Agreement of a Project the construction or acquisition of which occurred or began earlier than July 1, 1993 for a drinking water project, or before March 7, 1985 for a clean water project. If any proceeds of the Loan are to be used (1) to reimburse the Borrower for expenditures made prior to the Closing or (2) to refinance taxable debt any of the proceeds of which were used to reimburse the Borrower for expenditures made prior to the Closing, the Borrower represents that it has complied with the requirements of treasury regulation Section 1.150-2, or any successor thereto, so that on the date such proceeds are disbursed they will be considered under such Regulation to be proceeds of the Borrower Bond which have been spent. (c) Any Debt being refinanced with proceeds of the Loan shall have been incurred after July 1, 1993 for a Project the construction or acquisition of which occurred or began after July 1, 1993 for a drinking water project, or incurred after March 7, 1985 for a Project the construction or acquisition of which occurred or began after March 7, 1985 for a clean water project.