1. MIDA Bond-Oak Grove School - Laserfiche WebLink

SECTION 7.10. CORPORATION'S ASSURANCE OF TAX EXEMPTION. The Corporation represents that it understands that it is intended that interest on the Bonds not be included within the gross income of the owners thereof for federal income tax purposes. In furtherance thereof, the Corporation represents and covenants with the Issuer, the Lender and all Bondholders that it will take all actions (and refrain from taking any actions) which are necessary in order for interest on the Bonds to be excluded from gross income of the owners thereof for federal income taxation and, in addition, comply with the applicable provisions of the Code as follows: (a) the Corporation will fulfill all conditions specified in Section 145 ofthe Code; (b) the Corporation will not use (or permit to be used) the Facilities or use or invest (or permit to be used or invested) the proceeds ofthe Bonds or any other sums treated as "bond proceeds" under Section 148 of the Code including "investment proceeds," "invested sinking funds" and "replacement proceeds," in such a manner as to cause the Bonds to be classified "arbitrage bonds" under Section 148(a) of the Code or "federally guaranteed obligations" within the meaning of Section 149(b) of the Code; (c) substantially all (95%) of the net proceeds of the Bonds will be used to pay Qualified Project Costs; (d) the Corporation will, at all times during the term of this Loan Agreement own the Facilities as ownership is determined for federal income tax purposes and the Corporation shall remain a nonprofit corporation described in Section 501 (c )(3) ofthe Code and exempt from federal income taxes under Section 501(a) of the Code or any predecessor or successor provisions of similar import heretofore or hereafter enacted; (e) no more than three percent (3%) of the proceeds of the Bonds will be in the aggregate be used to finance or refinance properties used or to be used in an unrelated trade or business of the Corporation within the meaning of Section 513(a) of the Code or used directly or indirectly in any trade or business carried on by an entity that is not an exempt organization under Section 501(c)(3) of the Code or a governmental unit; (j) no portion of the Bond proceeds will be used to provide any airplane, sky box, or other private luxury box, any facility primarily used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises, all within the meaning of Section 147 ( e) of the Code; (g) the average maturity of the Bonds does not exceed one hundred twenty percent (120%) of the average reasonably expected economic life of the Project within the meaning of Section 14 7(b) of the Code; 7-4