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i 40 the Internal Revenue Code of 1954, as amended, and with Sections 1.103-13, 1.103-14 and 1.103-15 of the applicable regulations heretofore published in the Federal Register or with such other regulations inplementinq said Section 103(c), if and to the extent applicable, throughout the term of such issue. The Issuer further covenants with the purchasers of the issue that is comprised of the Bonds that it will comply with the provisions of H.R. 3838, 99th Congress, 1st Sess. (1985), as passed by the United States House of Representatives on Decenber 17, 1985, to the extent required to maintain Federal income tax exemption of the interest on the Bonds, giving effect to a joint statement issued on March 14, 1986, by ranking Republican and Democratic merrbers of the House Ways and Means Corrmi ttee and the Senate Finance Corrmi ttee and the Secretary of the Treasury with respect to the effective dates of certain provisions of such Bill affecting state and local government bonds. This covenant shall be of no further force or effect as to any or all of the provisions of such Bill, as applicable and appropriate, at such time as the Issuer receives an opinion of nationally recognized counsel to the effect that continuing compliance by the Issuer with such provision or provisions is not required to maintain Federal income tax exemption with respect to interest on the Bonds. 4.04 Defeasance. I f, at any t ime, the Issuer shat I have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds, then, and in that event, the pledge of and Iien on the Pledged Funds in favor of the holders of the Bonds shall be no longer in effect. For purposes of the preceding sentence, deposit by the - 23 -