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M <br />E. Adequate provision is made under the provisions of <br />the Loan Agreement for the operation, repair and maintenance of <br />the Project at the expense of the Borrower, and for the payment <br />of the principal of, premium, if any, and interest on the Bonds. <br />F. The principal of, premium, if any, and interest on <br />the. Bonds and all payments required under the Loan Agreement and <br />the Indenture shall be payable from the proceeds derived by the <br />Issuer under the Loan --Agreement, including the Loan Payments <br />required to be made by the Borrower in connection with its use <br />and operation of the Project, and the Issuer shall never be <br />required to (1) levy ad valorem taxes on any property within its <br />jurisdictional territorial limits to pay the principal of, <br />premium, if any, and interest on the Bonds or to make any other <br />payments provided under the Loan Agreement and the Indenture, or <br />(Z) pay the same from any funds of the Issuer other than those <br />derived by the Issuer under the Loan Agreement or the Guaranty <br />Agreement; and such Bonds shall not constitute a lien upon any <br />other property owned by or situated within the jurisdictional <br />territorial limits of the Issuer. <br />G. The payments to be made by the Borrower to the <br />Trustee under the Loan Agreement will be sufficient to pay all <br />principal of, premium, if any, and interest on the Bonds, as the <br />same shall become due, and to make all other payments required by <br />the Loan Agreement and the Indenture. <br />H. The costs to be paid from the proceeds of the Bonds <br />will be costs of the Project, within the meaning of the Act. <br />I. The interest on the Bonds will be exempt from <br />federal income taxation under existing laws of the United States. <br />J. Industrial development revenue bonds are tradi- <br />tionally sold on a negotiated basis and, consequently, a com- <br />petitive sale of the Bonds would in all probability not produce <br />better terms than a negotiated sale, particularly in view of the <br />timing of such an offering and the current instability of the <br />bond market. <br />K. The Bonds are payable from the proceeds of the Loan <br />Agreement and, therefore, the Issuer does not have a direct <br />interest in the terms of sale. The Borrower has expressed its <br />unwillingness to undertake the risks and expenses attendant to a <br />public sale of the Bonds. <br />L. The complex nature of the security for payment of <br />the Bonds requires a lengthy review of the credit of the Borrower <br />1XIM <br />OCT 19 1983 55 MU 1?3 <br />