Orange County NC Website
Browse       Search
55 <br /> ARTICLE VIII <br /> TAX COVENANTS <br /> The Corporation will not take or permit, or omit to take or cause to be taken, any action that <br /> would adversely affect the exclusion from gross income for federal income tax purposes of the interest <br /> evidenced by or paid on the 1993A Bonds and, if it should take or permit, or omit to take or cause to <br /> be taken, any such action, the Corporation will take or cause to be taken all lawful actions within its <br /> power necessary to rescind or correct such actions or omissions promptly on having knowledge thereof. <br /> The Corporation acknowledges that the continued exclusion of interest evidenced by or paid on the Bonds <br /> from an Owner's gross income for federal income tax purposes depends, in part, on compliance with the <br /> arbitrage limitations imposed by Section 148 of the Code. The Corporation covenants herein that it will <br /> comply with all the requirements of Section 148 of the Code, including the rebate requirements, and that <br /> it will not permit at any time any of the proceeds of the 1993A Bonds or other funds under its control <br /> be used, directly or indirectly, to acquire any asset or obligation, the acquisition of which would cause <br /> the 1993A Bonds to be "arbitrage bonds" for purposes of Section 148 of the Code. <br /> [End of Article VIII] <br /> II <br /> 33 <br />