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23 <br /> reimburse the Bondholder for any interest, penalties or other charges assessed by <br /> the United States Internal Revenue Service or the North Carolina Department of <br /> Revenue against the Bondholder by reason of the Bondholder's failure to include the <br /> interest paid by the County on the 2023 Bonds in its gross income for income tax <br /> purposes. The County shall pay to each affected Bondholder interest calculated at <br /> the Alternative Rate of Interest notwithstanding any transfer by the Bondholder or <br /> payment or prepayment by the County prior to the Determination of Taxability. <br /> As appropriate, each affected Bondholder shall promptly prepare a substitute <br /> Exhibit D reflecting the Alternative Rate of Interest, as calculated by the Bondholder, <br /> and the resulting payment schedule, and deliver a copy of the new schedule to the <br /> County, the Trustee and to the LGC. The Trustee has no responsibility to calculate <br /> any such additional interest, penalties or charges, or to confirm that any have been <br /> paid, with those matters lying only between the County and the affected <br /> Bondholders. <br /> Section 1.06. Default Rate. While any default by the County under the 2023 <br /> Bonds, the Deed of Trust or the Trust Agreement is continuing, the 2023 Bonds will <br /> bear interest (but only during the pendency of the default) at the Default Rate. If a <br /> default only applies to the 2023A or the 2023B Bond, then only the affected 2023 <br /> Bond will be subject to interest at this default rate. As appropriate, each affected <br /> Bondholder shall promptly prepare a substitute Exhibit D reflecting the new <br /> interest rate and resulting payment schedule, and deliver a copy of the new <br /> schedule to the County, the Trustee and to the LGC. The Trustee has no <br /> responsibility to calculate any such additional interest, penalties or charges, or to <br /> confirm that any have been paid, with those matters lying only between the County <br /> and the affected Bondholders. <br /> Section 1.07. Redemption Dates and Prices. The 2023 Bonds are subject <br /> to redemption as described in Section 2.01. <br /> Section 1.08. Delivery of 2023 Bonds. The Trustee will authenticate and <br /> deliver the 2023 Bonds when it has received the following items: <br /> (a) Certified copies of County Board resolutions (i) approving the terms <br /> and conditions under which the 2023 Bonds are to be executed and delivered and <br /> (ii) authorizing the execution, delivery and issuance of the 2023 Bonds, this <br /> 5 <br />