Agenda - 09-20-1994 - Laserfiche WebLink

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NON-ARBITRAGE CERTIFICATE AND TAX COVENANTS 17 The undersigned officer of Orange County , North Carolina ("Purchaser") hereby certifies that the following exist or are reasonably expected to occur: Delivery of Installment Purchase Contract 1. The Purchaser will this day deliver the Installment Purchase Contract, Number Three ("Agreement") among the Purchaser, Wachovia Leasing Corporation ("Lender") and Wachovia Bank of North Carolina, N.A., as escrow agent ("Escrow Agent"). Under the Agreement the Lender will advance to the Purchaser certain moneys ("Purchase Price") to be used by the Purchaser to acquire the Project (as defined in the Agreement). The Purchaser will repay the Purchase Price by making Installment Payments (as defined in the Agreement) to the Lender. Proceeds 2. The Lender will deposit the Purchase Price for the Project in the amount of $259,600.00 in an escrow fund ("Escrow Fund") to be held by the Escrow Agent pursuant to the Agreement. Amounts on deposit in the Escrow Fund will be used to pay the costs of acquisition of the Project. It is anticipated that all amounts on deposit in the Escrow Fund will be expended with due diligence to pay the costs of acquisition and installation of the Project and that all such amounts will be expended within three years after the date of this certificate. No Funds 3. Other than the Escrow Fund the Purchaser has not and will not create or establish any sinking fund or similar fund with respect to the Installment Payments, unless the Purchaser obtains an opinion of nationally recognized bond counsel that the creation or establishment of any such fund will not cause the Agreement to be an arbitrage obligation. The undersigned officer covenants on behalf of the Purchaser as follows: No Overissuance 4. The Purchase Price(including any proceeds from the investment thereof), less the costs of issuing the Agreement, will not exceed by more than 5% the amount necessary to pay the cost of the Project. Rebate Requirement 5. The Purchaser agrees to take all steps necessary to cause the requirements of Section 148 (f) of the Internal Revenue Code 1986, as amended ("Code") to be complied with, including but not limited to all reporting and rebate requirements. Other Issues fi. If the Purchaser is required to calculate the "yield" on the Agreement pursuant to Section 148 of the Code, the Purchaser will include any other governmental obligations of the Purchaser which would be treated as part of the same issue under the Code.