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Account of the Bond Fund and the Project Fund and invested in Eligible Investments pursuant to the <br /> Indenture until requisitioned in accordance therewith and in accordance with the Loan Agreement. <br /> The Trustee is required to invest amounts held in the Special Funds in Eligible Investments, as <br /> defined in the Indenture. See "THE INDENTURE—Investment of Funds." In the event the Trustee is <br /> forced for any reason to liquidate the Eligible Investments prior to their stated maturity date, no assurance <br /> can be given, however, that the Trustee will be able to reinvest such amounts at a rate equal to the rate <br /> earned on the redeemed Eligible Investments. Failure to receive such a rate of return or a return of the <br /> amounts so invested could affect the ability to pay the principal of and interest on the Bonds. <br /> Taxability <br /> The Bonds are not subject to redemption, and the rate of interest on the Bonds is not subject to <br /> adjustment,by reason of the interest on the Bonds being included in gross income for purposes of federal <br /> income taxation. Such event could occur if the Borrower(or any subsequent owner of the Project) does <br /> not comply with the provisions of the Indenture, the Regulatory Agreement or the Loan Agreement that <br /> are designed, if complied with,to satisfy the continuing compliance requirements of the Code in order for <br /> the interest on the Bonds to be excludable from gross income for purposes of federal income tax. <br /> Enforceability of Remedies <br /> The remedies available to the Trustee and the owners of the Bonds upon an event of default under <br /> the Loan Agreement or the Indenture are in many respects dependent upon regulatory and judicial actions <br /> which are often subject to discretion and delay. Under existing law and judicial decisions, the remedies <br /> provided for under the Loan Agreement or the Indenture may not be readily available, and the Borrower <br /> will have no personal liability for the satisfaction of any obligation of the Borrower under such <br /> agreements or of any claim against the Borrower arising out of such agreements or the Indenture. <br /> The various legal opinions to be delivered concurrently with the delivery of the Bonds will be <br /> qualified to the extent that the enforceability of certain legal rights related to the Bonds and the <br /> documents described above is subject to limitations imposed by such things as the exercise of judicial <br /> discretion in accordance with general principles of equity(whether applied by a court of law or a court of <br /> equity), including judicial limitations on rights to specific performance and bankruptcy, insolvency, <br /> reorganization, moratorium or other similar laws heretofore or hereafter in effect affecting creditors' <br /> rights,to the extent constitutionally applicable. <br /> No Personal Liability of Borrower <br /> The Borrower has not been and will not be personally liable for payments on the Bonds, nor will <br /> the Borrower be personally liable under the other documents executed in connection with the issuance of <br /> the Bonds. <br /> Secondary Markets and Prices <br /> The Underwriter will not be obligated to repurchase any of the Bonds, and no representation is <br /> made concerning the existence of any secondary market for the Bonds. No assurance can be given that <br /> any secondary market will develop following the completion of the offering of the Bonds contemplated <br /> by this Official Statement, and no assurance can be given that the Bonds can be resold at their initial <br /> offering prices for any period of time. <br /> - 10- <br />