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Eligible Investments <br /> Proceeds of the Bonds deposited into the Project Fund and the Bond Fund, and money received <br /> by the Trustee for deposit into the Assignment Fund are required to be invested in Eligible Investments. <br /> See "THE INDENTURE—Investment of Funds" herein. Although the Eligible Investments will be <br /> guaranteed by the full faith and credit of the United States,there can be no assurance that there will not be <br /> a loss resulting from any investment held for the credit of the Project Fund, the Bond Fund or the <br /> Assignment Fund, and any failure to receive a return of the amounts so invested could affect the ability to <br /> pay the principal of and interest on the Bonds. <br /> Rating Based on Eligible Investments <br /> The ratingon the Bonds is based on the amounts in the Fund and the Assignment Fund <br /> Project � <br /> being invested in Eligible Investments. If one or more of such investments fail to meet the rating <br /> standards for Eligible Investments after their acquisition and prior to maturity, such a change may result <br /> in a downgrade or withdrawal of the rating on the Bonds. <br /> Future Legislation; IRS Examination <br /> The Project, its operation and the treatment of interest on the Bonds are subject to various laws, <br /> rules and regulations adopted by the local, State and federal governments and their agencies. There can <br /> be no assurance that relevant local, State or federal laws, rules and regulations may not be amended or <br /> modified or interpreted in the future in a manner that could adversely affect the Bonds, the Trust Estate <br /> created under the Indenture, the Project, or the financial condition of or ability of the Borrower to comply <br /> with its obligations under the various transaction documents. <br /> In recent years,the Internal Revenue Service("IRS")has increased the frequency and scope of its <br /> examination and other enforcement activity regarding tax exempt bonds. Currently, the primary penalty <br /> available to the IRS under the Code is a determination that interest on bonds is subject to federal income <br /> taxation. Such event could occur for a variety of reasons, including, without limitation, failure to comply <br /> with certain requirements imposed by the Code relating to investment restrictions, periodic payments of <br /> arbitrage profits to the United States of America, the timely and proper use of Bond proceeds and the <br /> facilities financed therewith and certain other matters. See"TAX MATTERS"herein. No assurance can <br /> be given that the IRS will not examine the Issuer, the Borrower, the Project or the Bonds. If the Bonds <br /> are examined, it may have an adverse impact on their price and marketability. <br /> Summary <br /> The foregoing is intended only as a summary of certain risk factors attendant to an investment in <br /> the Bonds. In order for potential investors to identify risk factors and make an informed investment <br /> decision, potential investors should be thoroughly familiar with this entire Official Statement, including <br /> the Appendices hereto. <br /> THE INDENTURE <br /> The following is a brief summary of certain provisions of the Indenture. The summary does not <br /> purport to be complete or definitive and is qualified in its entirety by reference to the Indenture, copies of <br /> which are on file with the Issuer and the Trustee. <br /> - 11 - <br />