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amount for the payment of debt service on the Bonds is not subject to judicial challenge by taxpayers in the County. LITIGATION General. The County is a defendant from time to time in various lawsuits, including, in particular, litigation related to zoning and other land use regulation matters. It is the opinion of the County Attorney that the County has meritorious defenses against current pending litigation; provided, however, that there is no assurance that the County will not incur some liability. The Bonds. There is no pending or, to the knowledge of the County, threatened litigation against the County which in any way questions or affects (1) the validity of the Bonds, or any proceedings or transactions relating to their issuance, sale, delivery or payment; (2) the pledge of the Ad Valorem Taxes to secure payment of the Bonds; or (3) the collection and application of the Ad Valorem Taxes in accordance with the provisions of the Resolution. LEGAL MATTERS Legal matters incident to the issuance of Bonds and with regard to the tax-exempt status of the interest on Bonds (see "TAX EXEMPTION") are subject to the legal opinion of Bryant, Miller and Olive, P.A., whose fees and expenses for legal services as Bond Counsel will be paid by the County from a portion of the proceeds of Bonds. The signed legal opinion, dated and premised on law in effect as of the date of original delivery of Bonds, will be delivered to the Underwriter at the time of original delivery, and the text of the opinion will be printed on Bonds. The proposed text of the legal opinion is set forth as Appendix D hereto. The actual legal opinion to be delivered may vary from that text if necessary to reflect facts and law on the date of delivery. The opinion will speak only as of its date, and subsequent distribution of the opinion by recirculation of the Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or expresses any opinion concerning any of the matters referenced in the opinion subsequent to its date. Certain legal matters incident to the issuance of Bonds will be passed upon for the County by Charles P. Vitunac, County Attorney, and Squire, Sanders & Dempsey, Disclosure Counsel. TAX EXEMPTION The Internal Revenue Code of 1986, as amended (the "Code") establishes certain requirements which must be met subsequent to the issuance and delivery of the Bonds in order that interest on the Bonds be and remain excluded from gross income for purposes of Federal income taxation. Non- compliance may cause interest on the Bonds to be included in Federal gross income retroactive to the date of issuance of the Bonds, regardless of the date on which such non-compliance occurs or is ascertained. These requirements include, but are not limited to, provisions which prescribe yield and other limits within which the proceeds of the Bonds and the other amounts are to be invested and require that certain investment earnings on the foregoing must be rebated on a periodic basis to the Treasury Department of the United States. The County has covenanted in the Resolution to comply with such requirements in order to maintain the exclusion from Federal gross income of the interest on the Bonds. 3247/IND38M-9/P0S-60DY-1 23