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a yield greater than the yield on the Note for the purpose of paying debt service on the Note. (f)The Borrower has covenanted in the Loan Agreement that it will take all actions required under Section 148 of the Code and all Regulations relating thereto to prevent the Note, as amended by the Note Amendment, from becoming an arbitrage bond and rebate any arbitrage profits. (g)The City and Borrower need not rebate any earnings on “gross proceeds” (as defined in Section 1.148-7(d)(3)) of the Note, as amended by the Note Amendment, if all “gross proceeds” are expended within 6 months of the date hereof in accordance with the Regulations. The Borrower expects to spend all such "gross proceeds" within such period. (h)There are no replacement proceeds of the Note, as amended by the Note Amendment, within the meaning of § 1.148-1(c)(1) or (4) of the Regulations. For purposes of the safe harbor against the creation of certain replacement proceeds provided by § 1.148-1(c)(4)(i)(B) of the Regulations, the Note, as amended by the Note Amendment, has a weighted average maturity that does not exceed one hundred twenty percent (120%) of the average reasonably expected economic life of the Project determined in the same manner as under § 147(b) of the Code. (i)The stated purposes of the Note, as amended by the Note Amendment, are governmental purposes within the meaning of applicable law and regulations. (j)The Note, as amended by the Note Amendment, is not a hedge bond within the meaning of § 149(g) of the Code, because (1) the City reasonably expects that eighty-five percent (85%) of the spendable proceeds of the Note, as amended by the Note Amendment, will be used to carry out the governmental purposes of the Note within the three (3) year period beginning on the date hereof, and (2) not more than fifty percent (50%) of the proceeds of the Note is invested in nonpurpose investments having a substantially guaranteed yield for four (4) years or more. (k)No "abusive arbitrage device" within the meaning of § 1.148-10 of the Regulations is used in connection with the Note. No action relating to the Note has the effect of (1) enabling the Borrower to exploit the difference between tax-exempt and taxable interest rates to obtain a material financial advantage, and (2) overburdening the tax-exempt market. The City is not aware of any facts or circumstances that would cause it to question the accuracy of the foregoing representations and on the basis thereof, it is not expected that the proceeds of the Note, as amended by the Note Amendment, will be used in a manner that would cause the Note, as amended by the Note Amendment, to be an arbitrage bond under Section 148 of the Code and the regulations prescribed under that section, and to the best of our knowledge and belief, there are no facts, estimates or circumstances other than those mentioned above that would materially change the conclusion that it is not expected that the proceeds of the Note, as amended by the Note Amendment, will be used in a manner that would cause the Note, as 4 4914665v1