11-14-01 2. LOAN AGREEMENT - Laserfiche WebLink

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"preliminary expenditures" or "de minimus expenditures" within the meaning of Treasury Regulation 1.150-2. (x) Neither the Borrower, the Sole Member nor any "related person" as defined in Treasury Regulations,Section 1.103-13(h)(2)(iv),will,pursuant to an arrangement, formal or informal, purchase obligations of the City in an amount related to the principal amount of the Series 2001 Tax-Exempt Bonds. (y) Neither the Borrower nor the Sole Member will take or omit to take, nor permit others to take or omit to take, any action, which, if taken or omitted, would adversely affect the exclusion of interest on the Series 2001 Tax-Exempt Bonds from gross income for federal income tax purposes. (z) Not more than 5%of the sale proceeds of the Series 2001 Tax-Exempt Bonds will be spent on working capital within the meaning of Treasury Regulation§1.148-6(c), except as otherwise described in§1.148-6(d)(3)(ii). No proceeds of the Series 2001 Tax-Exempt Bonds will be applied to fund a working capital reserve within the meaning of Treasury Regulation §1.148. (aa) The Borrower has provided, or caused to be provided, to Bond Counsel for the Series 2001 Tax-Exempt Bonds all documents, instruments and other written material requested by Bond Counsel to enable Bond Counsel to render its opinion with respect to the tax-exempt status of interest on the Series 2001 Tax-Exempt Bonds. In addition,such documentation provided to Bond Counsel did not and does not contain any untrue statement of a material fact and did not and does not omit to state any material fact necessary to be stated therein to make the information provided therein, in light of the circumstances under which such information was provided,not misleading with respect to any matter relied upon by Bond Counsel in rendering such opinion,and the Sole Member is not aware of any other material information which Bond Counsel has not requested. [End of Article II] -17-