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e• The Bonds of each Issue will bear interest for an Initial Interest Period extending from the date of their initial delivery through and including the date set forth on the cover page of this Official Statement at the respective rate or rates set forth on the cover page of this Official Statement, payable on the first Business Day of each month (computed on the basis of the actual number of days elapsed over a year of 365 days [366 days in leap years)). Thereafter, the Bonds of each Issue will bear interest at the Variable Rate established separately for such Issue, which will be determined by the Remarketing Agent- as described below under "Variable Rate," unless a Fixed Rate Period is established for the Bonds of such Issue as described below under "Fixed Rate." Before each date on which the interest rate borne by the Bonds of an Issue is changed from the Variable Rate to the Fixed Rate or from the Fixed Rate to the Variable Rate (but not following the Initial Interest Period set forth on the cover page of this Official Statement), and before each date on which one or more Fixed Rate Periods are established for such Bonds, the Company must deliver to the Trustee an opinion of Bond Counsel to the effect that such change or the establishment of such Fixed Rate Period (as the case may be) will not adversely affect the excludability from gross income of interest paid on such Bonds for federal income tax purposes. Each Indenture requires the Registrar and Paying Agent to mail notice of each Conversion Date applicable to the Bonds of an Issue to the owners of such Bonds at least 35 days before such Conversion Date. The interest rate borne by the Bonds of each Issue may not exceed 15% per annum (the "Maximum Rate") as long as a Credit Facility securing the Bonds of such Issue remains in effect, unless the Issuer of such Bonds, upon the written request of the Company and NHC, increases the Maximum Rate for the Bonds of such Issue by delivering to the Trustee for such Bonds, among other things (i) an opinion of Bond Counsel to the effect that such increase in the Maximum Rate will not adversely affect the excludability from gross income, for federal income tax purposes, of interest paid on the Bonds of such Issue and (ii) an amendment of the Credit Facility securing such Bonds or other evidence satisfactory to the Trustee that the amount that can be realized under such Credit Facility for the payment of interest on Bonds of such Issue will be sufficient, after adding all amounts, if any, that will be available for the payment of interest on any Credit Facility Bonds of such Issue when such Bonds cease to be Credit Facility Bonds, to pay up to the same number of days interest on Bonds of such Issue that are not Credit Facility Bonds (calculated at the increased Maximum Rate) as could have been paid prior to such increase (calculated at the prior Maximum Rate). The interest rate from time to time borne by the Bonds is further limited as described below under "Default Rate; Alternate Rates." The determination of the interest rates borne by the Bonds of each Issue from time to time as provided therein and in the Indenture under which such Bonds were issued will be conclusive and binding on the owners of such Bonds. -5-