1993-080 - Laserfiche WebLink

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X. TAX COVENANTS. The County covenants that it will not take any action or fail to take any action with respect to the proceeds of the Bonds that would result in loss of the exclusion from gross income for federal income tax purposes pursuant to section 103(a) of the Code of interest paid on outstanding Bonds which, when initially issued and sold, were the subject of an opinion of counsel to the effect that interest thereon was so excludable. With respect to any series of Bonds initially issued and sold as tax-exempt bonds within the meaning of the Code, the County covenants that any use of the System in the trade or business of any person or entity other than the County, including use under a take -or -pay contract or certain management contracts ("private business use"), if such use is related to the County's use of the System, will not exceed more than ten percent (10%) of the use of the System, or if such private business use in unrelated or disproportionate to the County's use of the System, will not exceed more than five percent (58) of the use of the System. The County covenants that no more than ten percent (10%) of the Revenues will be derived directly or indirectly from payments from any nongovernmental user, other than payments by a nongovernmental user as a member of the general public. Y. FURTHER TERMS AND CONDITIONS OF RESERVE ACCOUNT CREDIT INSTRUMENTS. The further terms and conditions upon which the Reserve Account requirement set forth in subsection B(4) above may be met in whole or in part with a Reserve Account Credit Instrument are, unless the Series 1993 Bond Insurer agrees otherwise, as follows: (1) With respect to any letter of credit: (a) such letter of credit shall be payable in one or more draws upon presentation by the Paying Agent of a sight draft accompanied by its certificate that it then holds insufficient funds to make a required payment of principal or interest on the Bonds; (b) the draws shall be payable within two days of presentation of the sight draft; (c) the letter of credit shall be for a term of not less than three years and shall be subject to an "evergreening" feature so as to provide the County with at least 30 months' notice of termination; the issuer of the letter of credit shall be required to notify the County and the Paying Agent not later than 30 months prior to the stated expiration date of the letter of credit as to whether such expiration date shall be extended, and if so, shall indicate the new expiration date. If such notice indicates that the expiration date shall not be extended, the County shall deposit in the Reserve Account an amount sufficient to cause the cash or permitted investments on deposit in the Reserve Account, together with any other qualifying Reserve Account Credit Instruments, to equal the Reserve Account 28