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

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redemption price to the Trustee as a Loan Repayment prior to the redemption date and to pay all fees, expenses, costs and advances of the Trustee and any paying agent under the Indenture. (c) The Borrower hereby acknowledges that under Section 148 of the Code and regulations thereunder, with certain exception, some or all investment return on gross proceeds of the Series 2001 Bonds in excess of the yield on such Bonds is required to be rebated to the United States (rebatable arbitrage). The Borrower hereby agrees to pay in full to the United States all rebatable arbitrage when due under Section 148 or such regulations. To fulfill such requirement, prior to each Computation Date, the Borrower shall engage a Rebate Analyst to prepare a report(the "Rebate Report") as to the amount of rebatable arbitrage due the United States with respect to such Computation Date, based on records of the Trustee,and to deliver the Rebate Report to the Trustee within 30 days after such Computation Date. The Borrower acknowledges that if the Trustee does not receive the Rebate Report within 30 days after a Computation Date, under Section 5.11 of the Indenture,the Trustee is instructed to engage a Rebate Analyst on behalf of and at the expense of the Borrower to determine the rebatable arbitrage, if any,due with respect to the Computation Date. Subject to Section 5.01, if the Borrower shall fail to deposit with the Trustee the amount of rebatable arbitrage within 45 days following any Computation Date(or within 5 days after the Borrower's receipt of any Rebate Report prepare at the direction of the Trustee),the Borrower acknowledges that the Trustee is instructed to transfer to the Rebate Fund the amount of rebatable arbitrage from the following funds:first from the Surplus Fund,second,from the Subordinate Debt Service Account,third from the Operating Reserve Fund,fourth from the Repair and Replacement Fund, fifth, from the Debt Service Reserve Fund (to the extent permitted by Section 5.04), sixth, from the Senior Debt Service Account, Seventh, from the Taxes and Insurance Fund, and eighth, from the Revenue Fund. The Borrower further acknowledges that under Section 5.11 of the Indenture,the Trustee is instructed to make available to the Borrower,to the extent of amounts in the Rebate Fund, the amount of rebate due,but only upon receipt of a Internal Revenue Service Form 8038T(or such other form as shall be appropriate for reporting the rebate due)duly completed with respect to the applicable issue of Tax-Exempt Bonds,accompanied by representations that the Borrower will apply such amounts to the payment of rebate due. Section 4.08 Investment of Funds, Credits. Amounts held by the Trustee pursuant to the Indenture shall be invested in accordance with Section 5.13 5.10 of the Indenture. Section 4.09. Pledge of Tax Increment Revenues. At or before the Date of Issuance,the City will execute and deliver the Tax Increment Note,whereby the City will agree to pay to the Borrower the Tax Increment Revenue, and the Borrower will deliver the Assignment of TIF Note to the Trustee as additional security for the Bonds,and will direct the City to make the payments of Tax Increment Revenue to the Trustee. The Trustee shall deposit the Tax Increment Revenue,as received,in the Revenue Fund,to be used as provided in the Indenture. [End of Article IV] -28-