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common or pooled security for the payment of debt service thereon, or which are otherwise,
<br />I ".
<br />treated as the same "issue of obligation,s" as the 'Note as described in Treasury Reguiations
<br />Section 1.150-1(c)(I),,
<br />(k) No Note proceeds shall be invested in 'investments which cause the Note
<br />to be federally guaranteed within the meaning of Section 1491(b) of the Code. If at any time the
<br />1 (1)
<br />moneys 1 * n such. funds exceed, within the meaning of Section 149(b)(31)(B) olf the Code, -or
<br />aniounts invested 1"or an initial temporary period until the moneys are needed for the purpose f
<br />which the Note were issued, (1i) investments of a bona fide debt service fund, and (iii)
<br />investments of a reserve which meet the requirement of Section 148 (id) of the Code, such excess
<br />moneys shall be invested in only those investments,, which are (A) obligations issuied by the
<br />United States Treasury, (B) other investments permitted under regulations, or i(C) obligations
<br />which are (1) not issued by, or guaranteed by, or insured by, the United States or any agency or
<br />ng
<br />in me
<br />struntality thereof or (11) not federally *Insured deposits or accounts, all within the mean'
<br />of Section 149(b) of the Code.; and
<br />(1) The prod ect is suitable for use in academic 'instruction and educational and
<br />cultural activities, and no part of the Project is designed for use or will be used primarily for
<br />religious instruction or as a place for devotional activities or religious worship-,
<br />(in) In order to qualify the Note and this Alureement under the governmental
<br />t7
<br />program" provisions of Section 1.148-1(b) of the Treasury Regulations, the Bilorrower and any
<br />"related person" thereto) will take no action the effect of which would be to disqualify this Loan
<br />Agreement as an "acquired program obligation"' under said Section 1.148-1(b), 'Including but not
<br />limited to entering into any arrangement, formal or informal for the Borrower to purchase bonds
<br />or Note of the City in an amount related to the amount of the Note.
<br />(n) Not otherwise use Note proceeds, or tale or fail to take any action, the
<br />effect of which would be to cause interest on the Note to be 'Included in gross income for
<br />purposes of federal income taxation.
<br />(2) For the purpose of this Section, a "Determination of Taxability" shall inean the
<br />issuance of a statutory notice of deficiency by the Internal Revenue Service, or a ruling of the
<br />National Office or any District Office of the Internal Revenue Service, or a finial decision of a
<br />court of competent Jurisdiction,, or a change in an), appliciablie federal statute, which holds or
<br />provides in effect that the interest payable on the Niotle is includible, for federal, "income tax
<br />purposes under Section 103 of the Code 'in the gross income of' the Lender or any other loo /der or
<br />a action, ing or
<br />prior holder of the Note, if the period, 'if any, for contest or appeal of such ct"on, rul
<br />decision by the Borrower or Lender or any other interested party has expired without any such
<br />contest or appeal having been properly instituted by the Lender, the Borrower or any other
<br />interested party. The expenses of any such contest shall be paid by the party initiating the
<br />contest, and neither the Lender nor the Borrower shall be required to contest, or appeal any
<br />Determination of Taxability. The "Date of Taxability" shall mean, that point, in time, as specified
<br />Ire the determination, ruling, order, or decision, that the interest payable on the Note becomes
<br />includible in the gross income of the Lender or any other holder or prior, holder of the Note, as
<br />the case may be, for federal income tax purposes.
<br />2144817 l 14
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