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MAY2 3 1994 57, A c E 3 <br />H. ARBITRAGE. The County does hereby further covenant <br />that no use will be made of the proceeds of the Bonds which would <br />cause the Bonds to be "arbitrage bonds" within the meaning of <br />Section 103(c) of the Internal Revenue Code of 1954, as amended, <br />and the applicable regulations thereunder. The County, at all <br />times while such Bonds and the interest thereon are outstanding, <br />including refundings thereof, will comply with the requirements <br />of said Section 103(c) and with the valid and applicable rules <br />and regulations of the Internal Revenue Service thereunder. <br />SECTION 19. RIGHTS OF THE BOND HOLDERS. The Holders of <br />the Bonds shall have no responsibility for the application and <br />use of the proceeds received from the sale thereof and the appli- <br />cation and use of such proceeds by the County shall in no way <br />affect the rights of the Bond Holders. The County shall be irre- <br />vocably obligated, upon receipt thereof, to use the Pledged <br />Revenues and the income from investments pledged hereunder to pay <br />the principal of and interest on the Bonds and to make all <br />reserve and other payments provided for herein, notwithstanding <br />any failure of the County to apply such Bond proceeds in the <br />manner provided herein. <br />SECTION 20. DEFEASANCE. If, at any time, the County <br />shall have paid, or shall have made provision for payment of, the <br />principal, interest and redemption premiums, if any, with respect <br />to the Bonds, then, and in that event, the pledge of and lien on <br />the Pledged Revenues and the income from investments in favor of <br />the Holders of the Bonds shall be no longer in effect. For pur- <br />poses of the preceding sentence, deposit of Federal Securities or <br />bank certificates of deposit fully secured as to principal and <br />interest by Federal Securities (or deposit of any other securities <br />or investments which may be authorized by law from time to time <br />and sufficient under such law to effect such a defeasance) in <br />irrevocable trust with a banking institution or trust company, for <br />the sole benefit of the Holders of such Bonds, in an amount such <br />that the principal of and interest on such securities or certi.fi- <br />-30- <br />M <br />_I <br />