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XI. OBLIGATIONS OF THE RECIPIENT RELATING TO THE USE OF BOND <br />PROCEEDS <br />1. FCT is authorized by Section 380.510, Fla. Stat. to impose conditions for funding on <br />the Recipient in order to ensure that the project complies with the requirements for the use of Florida <br />Forever Bond proceeds including, without limitation, the provisions of the Internal Revenue Code <br />and the regulations promulgated thereunder as the same pertain to tax exempt bonds. <br />2. The Recipient agrees and acknowledges that the below listed transactions, events, and <br />circumstances, collectively referred to as the "disallowable activities," may be disallowed on the <br />Project Site as they may have negative legal and tax consequences under Florida law and federal <br />income tax law. The Recipient further agrees and acknowledges that these disallowable activities <br />may be allowed up to a certain extent based on guidelines or tests outlined in the Federal Private <br />Activity regulations of the Internal Revenue Service: <br />a. any sale or lease of any interest in the Project Site to a non-governmental <br />person or organization; <br />b. the operation of any concession on the Project Site by a non-governmental <br />person or organization; <br />C. any sales contract or option to buy or sell things attached to the Project Site <br />to be severed from the Project Site with a non-governmental person or <br />organization; <br />d. any use of the Project Site by a non-governmental person other than in such <br />person's capacity as a member of the general public; <br />e. any change in the character or use of the Project Site from that use expected <br />at the date of the issuance of any series of Bonds from which the <br />disbursement is to be made; <br />f. a management contract for the Project Site with a non-governmental person <br />or organization; or <br />g. such other <br />activity or <br />interest as <br />may be specified from time to time in <br />writing by <br />FCT to the <br />Recipient. <br />3. If the Project Site, after its acquisition by the Recipient and/or the Trustees, is to <br />remain subject to any of the disallowable activities, the Recipient shall provide notice to FCT, as <br />provided for in paragraph V. I., at least sixty (60) calendar days in advance of any such transactions, <br />events or circumstances, and shall provide to FCT such information as FCT reasonably requests in <br />order to evaluate for approval the legal and tax consequences of such disallowable activities. <br />07-039-FF7 <br />Dec 13,2007 <br />Pre-acquisition <br />-13- <br />