7A Request from Presbyterian Homes for Conduit Financing

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(c} Na more than five p�rcent (5%) of the net proceeds of the Note, less any proceeds of �he Nate used for Issuance Expenses, are ta be used far any private business use as defined in Section 141{b}(f) of ihe Code. (d) The payment of the principal of, or interest on, no mare than five percent {5%) of ihe net proceeds of the Note is {under ihe terms of ihe Note or aziy underlying arrangement) directly or indirectly (a) secured by any interest in (i) property used ar to be used for a private business use, or {ii} payments in respect of such property, ar(b) to be derived from payrz�ents (whether oz- not to the City) in respect of property, or borrowed xnoney, used or to be used for a private business use. (e) The aggregate autk�orized face amount of the Note (when increased by any outstanding tax-exempt "qualified 501(c)(3} bonds" issued prior to 1997, ather than "qualified hospital bonds," of the Borronver, or any arganization with which the Borrower is under cammon managexnent ar control and is a test-period beneficiary determined in accordance with Section 145{b} oi the Code) does not exceed $ISO,Q00,400 or, aliernatively, at least 95% of the net proceeds of the Nate will be used for capital expenditures. ( fl The w�ighted average maturity of the Note will not e�ceed the estimated economic life of the Project by more than iwenty percent (20%), all within ihe rneaning oiSection 147(b} ofthe Code. (g) While the Note remains autstanding, na portion of the proceeds of the Note will be used ta provide any airpiane, skybox ar ather private luxury box, any facility primarily used for gambling, or a store, the principal business of which is the sale of a�coholic beverages for consumption off premises. (h) Not rnore than 2% oi tl�e proceeds oi the Note will be used to finance Issuaz�ce Expenses. (i) The Borrower agrees it will not use the proceeds of the Note in such a rnanne� as to cause the Note to be an "arbitrage bond" within the meaning of Section 148 of the Code and applicable Treasury Regulations. The Borrower shall: (i) maintain recards identifying alI "gross proceeds" and "replacement proceeds" {as defined in Section 148(fl{6)(B) af the Code attributable to the Note, the yield at which such gross proceeds are invested, ariy arbitrage prafit derived therefrom (earnings in excess of the yield on the Note) and any earnings derived from the investment of such arbitrage profit; (ii) make, or cause to be made as of ihe end of each fifth bond year, the annual determinations of the amount, if any, of excess arbitrage required to be paid to the United Sta�es, unless the Borrower obtains an Opinion of Counsel to the effect that such calculations need not be made (the "Rebate Am�ouni"); {iii) pay, or cause to be paid, to the Uniied States at least once every fifth bond year the amo�nt, if any, which is required to be paid ta the Unitet� 2208$45v4 � 3