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amount by which "adjusted net book income" exceeds the corporation's "alternative minimum taxable income." After 1989, such alternative minimum taxable income will include 75% of the amount by which "adjusted current earnings" exceed "alternative minimum taxable income." Interest on a Bond would be includable in the "adjusted net book income" and "adjusted current earnings" of a corporation for purposes of such alternative minimum tax. In addition, the Code imposes an environmental tax on corporations for the years beginning after 1986 and before 1992 equal to 0.12°~ of the excess of "modified alternative minimum taxable income" over a specified amount, generally $2 million. Interest on a Bond would be taken into account in computing such environmental tax. Further, the Code imposes a branch profits tax on U.S. branches of foreign corporations equal to 30°~ of the adjusted earnings and profits of such corporations attributable to income that is effectively connected, or treated as such, with the conduct of trade or business in the United States. Interest on the Bonds would be includable in such earnings and profits. Under the Code, ownership of tax-exempt obligations may also result in collateral federal income tax consequences to certain taxpayers including, without limitation, S corporations, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. No provision has been made for redemption of the Bonds, or for an increase in the interest rate on the Bonds, in the event that interest on the Bonds becomes subject to income taxation. The foregoing does not purport to be a comprehensive discussion of the tax consequences of owning the Bonds. Prospective owners of the Bonds should consult their own tax advisors with respect to the foregoing and other tax consequences of owning the Bonds. Not Qualified Tax-Exempt Obligations • The Bonds will not be designated "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax- exempt obligations. Financial Advisor Springsted Incorporated, Indianapolis, Indiana, has served as Financial Advisor to the Authority in connection with the issuance of the Bonds. The Financial Advisor will not participate in the underwriting of the Bonds. Certification On March 2, 1990 the Authority adopted this Official Statement. The Authority has authorized distribution of this Official Statement for use in connection with the initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser will be furnished with a certificate signed by the appropriate officers of the Authority. The certificate will state that as of the date of the Official Statement, it did not, and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. • -12-