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Upon the occurrence of an Event of Taxability and for as long as any portion <br /> of this Bond remains outstanding, the interest rate will convert to the Taxable Rate. <br /> This adjustment shall survive full payment on this Bond until such time as the <br /> federal statute of limitations under which the interest on the Bond could be declared <br /> taxable under the Code has expired. In addition, upon an Event of Taxability, the <br /> County shall, immediately upon demand, pay to the Bondholder (or prior <br /> Bondholders, if applicable) (i) an additional amount equal to the difference between <br /> (A) the amount of interest actually paid on the Bond during the Taxable Period and <br /> (B) the amount of interest that would have been paid during the Taxable Period had <br /> the Bond borne interest at the Taxable Rate, and (ii) an amount equal to any <br /> interest, penalties and additions to tax (as referred to in Subchapter A of Chapter 68 <br /> of the Code) owed by the Lender as a result of the Event of Taxability. <br /> The Trustee has no responsibility to calculate any such additional <br /> interest, penalties or charges, or to confirm that any have been paid, with <br /> those matters lying only between the County and the affected Bondholders. <br /> "Event of Taxability" means that a final decree or judgment of any federal <br /> court or a final action of the Internal Revenue Service determining that interest is <br /> includable in the gross income of the registered owner for federal income tax <br /> purposes as a result of the action or inaction of the County has been issued; <br /> provided, no Event of Taxability shall be deemed to occur unless the County has <br /> been given written notice of the occurrence and, to the extent permitted by law, an <br /> opportunity to participate in and seek, at the County's own expense, a final <br /> administrative determination by the Internal Revenue Service or determination by a <br /> court of competent jurisdiction (from which no further right of appeal exists) as to <br /> the occurrence of the Event of Taxability. For all purposes of this definition, the <br /> effective date of any Event of Taxability will be the first date as of which interest is <br /> deemed includable in the gross income of the registered owner of the this Bond. <br /> "Taxable Period" means the period of time between (a) the date that interest <br /> on this Bond is deemed to be includable in the gross income of the owner thereof for <br /> federal income tax purposes as a result of an Event of Taxability, and (b) the date of <br /> the Event of Taxability and after which the Bond bears interest at the Taxable Rate. <br /> 25 <br />