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( <br />E. Adequate provision is made under the provisions of <br />the Loan 1\gree1nent for the operation, repair and maintenance of <br />the Project at the expense of the Borrower, and for the payment <br />of the princi!_)al of, premium, if any, and inter est on the Bonds. <br />F. The principal of, premium, if any, and interest on <br />the Bonds and al 1 payments required under the Loan Agreement and <br />the Indenture shall be payable from the proceeds derived by the <br />Issuer 1.mder 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 ,\greement a.nd the Indenture, or <br />( 2) pay the same from any funds of the Is suer other than those <br />derived by the Issuer under the Loan Agreement or the Guaranty <br />Agreement; and such Bonds shal 1 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 il.greement 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 />1. The interest on the Bonds will be eKempt from <br />federal income taxation under eKisting laws of the United States. <br />J. Industrial development <br />tionally solcl on a ne9otiated basis <br />petitive sale of the Bonds would in <br />better terms than a negotiated sale, <br />timing of such an offering and the <br />bond market. <br />revenue bonds are tradi- <br />and, consequently , a com- <br />all pr.obabili ty not produce <br />particularly in view of the <br />current instability of the <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 />-3-