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Item 8h: Attachment The Public Entity shall not be required to pay or reimburse the State Entity or the Coinmissioner of MMB for any funds above and beyond the f'ull net pi-oceeds of such sale, even if such net proceeds are less than the amount of the Outstandin� Balance of the Pro�ram Grant. Article V COI�IPLIANCE �VITH G.O. CO�IPLIANCE LEGISLATION AND THE CO�TI�IISSIONER'S ORDER Section 5.01 State Sond Financed Property. The Public Entity and the State Entity ackno�vled;e and aQree that the Public Entity's o��nership intei�est in the Real Property and, if applicable, Facility is, or when acquired by� the Public Entitv wilf be. '`state bond financed property'', as such term is useci in the G.O. Compliznce LeQislation and the Commissioner's Order, and, therefore, the provisions contained in such stanite�and order apply, or will apply, to the Public Entity's o�vnership interest in the Real Property and, if applicable, Faci(ity and any Use Contracts relating thereto. Section 5.02 Preservation of Tas Esempt Status. In order to pz-eserve the tax-exempt status of the G.O. Bonds, the Public Entity a�rees as follows: A. It will not use the Real Property or, if applicable, Facility, or use or incest the Program Grant or any other sums treated as "bond proceeds" under S�ction 1=�8 of the Codz includin� "in��estment proceeds," -'in�ested sinkin� funds," and "replacement proceeds," in siich a manner as to cause the G.O. Bonds to be cll�sifi��d as `'a:bitraQe bond;" undec Section 1-�8 of the Code. B. It r,�-ill deposit into and hold a11 of thz Pro��ram Grant that it recei��es under this A�reement in a se�tegated non-intecest bearin� account until such funds ar,; u;ed tor payments for the Project in accordance �vith the provisions contained l�erein. C. It �vill, upon written request, provide the Commissioner of MVIB all infocmation required to satisfy the informational requirements szt forth in the Cocie includin�, but not limited to, Sections 103 and 148 thereof, ��ith respect to the G.O. Bonds. � D. It will, upon the occun-ence of any act or omissic�n by the Public Entiry or any Counterparty, that could cause the interest on thz G.O. Bonds to no longer be tax eYempt and upon direction from the Commissioner of MVIB, tal<e such actions and furnish such documents as the Commissioner of MVIB detennines to be necessary to ensure that the interest to be paid on the G.O. Bonds is eYempt from federal taxation, which such action may include either: (i) compliance with proceedings intended to classify the G.O. Bonds as a''q�ialified bond" within the meanin� of Section 141(e) of the Code, (ii) changin� the nature or terms of the Use Contract so that it complies with Revenue Procedure 97-13, 1997-1 CB 632, or (iii) changin� the nature of the use of the Real Property or, if applicable, Facility so that none of the net proceeds of the G.O. Bonds will be used, directly or indirectiy, in an "tu�related trade or business" or I�or any '-pri��ate busii�ess use" (�vithin the Generic GO Bon�l Proceeds 2 j Grant Asreement for Pro�ram End Grants Ver-6/30i 1-t