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Article VI. Arbitrase Rebate Services <br />Section 148 of the Internal Revenue Code requires issuers of tax-exempt bonds that meet <br />certain criteria to have arbitrage rebate computations performed on a periodic basis. Our <br />services will be limited to utilizing available information to calculate the arbitrage yield on <br />the bond issues, the yield on non -purpose investments, the amount of excess earnings, if <br />any, of the non -purpose investments at the calculated arbitrage yield, and the rebatable <br />arbitrage, if any, due as of the five-year anniversary date or more frequently as necessary. If <br />eligible, we will prepare spend -down calculations in lieu of rebate calculations. Our <br />services for the arbitrage rebate computations include: <br />A. Obtaining information from bond offering documents, information returns Fled upon <br />issuance (Form 8038 and 8038 G), arbitrage certificate, legal documents and <br />statements or summaries of transactions for the funds subject to rebate defined in the <br />documents. <br />B. Providing a report which will be addressed to the Client. The report will summarize <br />the results of the calculations performed. <br />C. Assistance in preparing the IRS from 8038-T, if necessary. <br />Calculation and payment of any arbitrage rebate due is the responsibility of the Client. The <br />Client is responsible for notifying the Firm of any additional or subsequent bond issues that <br />would require arbitrage rebate services. Our engagement will not include verifying that: <br />proceeds were used for purpose expenditures; investments were purchased at market price; <br />no amounts were paid to any party in order to reduce the yield on any investment; the bond <br />issue was appropriately structured or qualified as a tax-exempt offering; or information <br />provided to us is complete and accurate. <br />