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45 <br />at maturity. The difference between the amount payable at maturity of the Premium Bonds and the <br />tax basis of the Premium Bonds to a purchaser (other than a purchaser who holds Premium Bonds <br />as inventory, stock in trade or for sale to customers in the ordinary course of business) who purchas- <br />es the Premium Bonds at the initial offering price is "Bond Premium." Bond Premium is amortized <br />over the term of the Premium Bonds for federal income tax purposes. Owners of the Premium Bonds <br />are required to decrease their adjusted basis in the Premium Bonds by the amount of amortizable <br />Bond Premium attributable to each taxable year the Premium Bonds are held. Owners of the Pre- <br />mium Bonds should consult their tax advisors with respect to the precise determination for federal <br />income tax purposes of the treatment of Bond Premium upon the sale or other disposition of the <br />Premium Bonds and with respect to State of North Carolina and local tax consequences of owning <br />and disposing of the Premium Bonds. <br />Bond Counsel's approving opinion .will not specifically address the characterization of any <br />amounts as OID or Bond Premium, and will not specifically address the tax treatment of any <br />amounts that may constitute OID or Bond Premium. <br />FINANCIAL ADVISOR <br />has acted as financial advisor to the County in <br />connection with the issuance of the Bonds. The firm has provided technical assistance in structuring <br />the Bonds and related escrow account and has performed the mathematical computations to <br />determine the amount necessary to be deposited in the escrow account to pay and retire the Bonds to <br />be Refunded. will also assist in the purchase and subscription of <br />securities for the escrow account. <br />Rule G-23 of the Municipal Securities Rulemaking Board allows any broker, dealer or <br />municipal securities dealer, who has a finacial advisor relationship, to purchase new issues on a <br />competitively bid basis with prior written consent of the issuer. <br />has received written permission from the County to submit a competitive bid at the public sale for <br />the Bonds. through the competitive bidding process, may <br />acquire as principal or as a participant in a syndicate of underwriters, all or a portion of the <br />County's Bonds, including those upon which has rendered advice. <br />VERIFICATION OF MATHEMATICAL COMPUTATIONS <br />The accuracy of (a) the mathematical computations of the adequacy of the maturing principal <br />amounts of the respective Government Obligations and interest (if any) earned thereon, together <br />with any cash in the related escrow account, to pay all of the principal of and premium, if any, and. <br />interest on the Bonds to be Refunded as such interest payments become due and the Bonds to be Re- <br />funded are redeemed and (b) the mathematical computations supporting the conclusion that the Re- <br />funding Bonds are not "arbitrage bonds" under Section 148 of the Code are being verified by Barthe <br />& Wahrman, PA, Bloomington, Minnesota. Bond Counsel will rely on said verification in rendering <br />its opinion as to the exclusion of interest on the Refunding Bonds from gross income of the owners <br />thereof for purposes of federal income taxation. <br />27 <br />