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.The difference between the amount <br /> at maturit Y payable at maturity of the Premium Bonds and the 45 <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 (i£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 />