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whose sole member is a 501(c)(3)Organization,or a Governmental Unit(unless all <br /> Series 2001 Tax-Exempt Bonds are redeemed within 90 days from date on which <br /> there is a change from such an ownership). Neither the Borrower nor the Sole <br /> Member has any expectation that the Project Facilities will be owned in <br /> contravention of the preceding sentence,disregarding the parenthetical therein. <br /> (c) So long as any Series 2001 Tax-Exempt Bonds are outstanding,no more than five <br /> percent of the net proceeds of the Series 2001 Tax-Exempt Bonds(the sale proceeds <br /> thereof,less amounts deposited in the Debt Service Reserve Fund)will be used by <br /> any person other than: <br /> (i) by a Governmental Unit, <br /> (ii) by a 501(c)(3)Organization in a trade or business,the conduct of which is <br /> substantially related to the exercise or performance by the 501(c)(3) <br /> Organization of its charitable, educational, or other purpose or function <br /> which constitutes the basis for its exemption under Section 501 of the Code <br /> (other than such activities as will not constitute an "unrelated trade or <br /> business"for the person under Section 513(a)of the Code)(collectively,a <br /> "Non-Qualifying Use"),or <br /> (iii) a limited liability company, the sole member of which is a <br /> 501(c)(3)Organization,that operates as described in subparagraph <br /> (ii) above, <br /> (unless all Series 2001 Tax-Exempt Bonds are redeemed within 90 days <br /> from date on which there is a change from such an ownership). Neither <br /> the Borrower nor the Sole Member has any expectation that the Project <br /> Facilities will be used in contravention of the preceding sentence, <br /> disregarding the last parenthetical therein. For purposes of the foregoing, <br /> any proceeds of the Series 2001 Tax-Exempt Bonds used to finance Costs of <br /> Issuance will be treated as used in a Non-Qualifying Use. <br /> (d) The Sole Member is nonprofit corporation created and validly existing under the <br /> laws of the State. The Sole Member is a 501(c)(3)Organization. Either(i)the Sole <br /> Member has elected under Treasury Regulation §301.7701-3(a) to disregard the <br /> Borrower as an entity separate from the Sole Member for federal income tax <br /> purposes,or(ii)no election has been made under Treasury Regulation§301.7701- <br /> 3(b)(1)(i)not to disregard the Borrower as an entity separate from Sole Member for <br /> federal income tax purposes. <br /> (e) Within the meaning of Section 501(c)(3)of the Code,directly or indirectly,no part <br /> of the net earnings of the Sole Member inures to the benefit of any private <br /> shareholder or individual,no substantial part of the activities of the Sole Member <br /> is the carrying on of propaganda,or otherwise attempting,to influence legislation <br /> (except as otherwise provided in subsection(h)of Section 501 of the Code),and the <br /> Sole Member does not and will not participate in, or intervene in (including the <br /> publishing or distributing of statements),any political campaign on behalf of(or in <br /> opposition to)any candidate for public office. <br /> -14- <br />