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s Investments maturing at such time or times as will make the proceeds thereof available when needed. All income derived therefrom shall be deposited in the 1988 Construction Fund. All expenditures or disbursements from the 1988 Construction Fund shall be made only after such expenditures or disbursements shall have been approved in writing by the District and by the Consulting Engineers. The date of completion of each phase of the 1988 Project shall be determined by the Consulting Engineers, who will certify such facts in writing to the Board. SECTION 18. REBATE. Anything to the contrary contained herein notwithstanding, the District shall at least annually transfer appropriate amounts from the funds and accounts hereunder to which income on investments has been deposited into an account to be known as the "Series 1988 Rebate Account" sufficient to pay to the United States of America all amounts due with respect to the Series 1988 Bonds under the provisions of Section 148 (f) of the Internal Revenue Code of 1986, as amended and supplemented, or under similar provisions of subsequent federal revenue laws. The earnings on the Rebate Account shall be added to and become a part of the Rebate Account. Moneys in the Rebate Account shall only be used to pay the amounts due to the United States of America under said Section of the Code as the same shall become due and payable. It is the intent of this paragraph to provide for payment of all amounts due under said Section of the Code with respect to the Series 1988 Bonds, in such installments and at such times as may be required by said Section of the Code. In the event of any amendment to the Code or the promulgation of regulations under the Code which provide or require otherwise than as provided or required in this paragraph, this paragraph shall be deemed to be amended to incorporate such amendments or regulations, to the extent applicable, and any provisions hereof which conflict with the provisions thereof shall be deemed to be null and void. The District shall establish appropriate rebate accounts for any and all Additional Parity Bonds and junior and subordinate obligations issued hereunder and provide for the adequate funding thereof. SECTION 19. SALE OF BONDS. The Bonds may be sold at public or private sale pursuant to the Act, all at one time or from time to time, as shall be provided by subsequent resolution of the Board. SECTION 20. DEFEASANCE. If at any time the District shall have paid, or shall have made provision for payment of, the principal, interest and premiums, if any, with respect to the Bonds or series thereof, then, and in that event, the pledge of and lien on the Pledged Funds in favor of the Registered Owners of the Bonds or such series shall be no longer in effect. For purposes of the preceding sentence, the deposit of Federal Securities or bank certificates of deposit fully secured as to principal and interest by Federal Securities (or the deposit of any other securities or 26