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• such amendment to or exempt the Predesian Stage or the Real Property and, if applicable, the
<br />Facility from the G.O. Compliance Legislation or the Commissioner's Order.
<br />Section 6.02 Preservation of Tax Exempt Status. In order to preserve the tax-exempt
<br />status of the G.O. Bonds, the Public Entity agrees that during the time period that an_v G.O.
<br />Bonds are outstanding and unpaid:
<br />A. It will not use or invest any proceeds of the Grant or any other sums treated as
<br />"bond proceeds" under Section 148 of the Code including "investment proceeds," "invested
<br />sinking funds," and "replacement proceeds," in such a manner as to cause the G.O. Bonds
<br />to be classified as "arbitrage bonds" under Section 148 of the Code.
<br />B. It will deposit into and hold all of the Grant that it receives under this
<br />Agreement in a segregated non-interest bearing account until such funds are used for
<br />payments for the Predesign Stage in accordance with the provisions contained herein.
<br />C. It will, upon written request, provide the Commissioner of Finance all
<br />information required to satisfy the informational requirements set forth in the Code
<br />including, but not limited to, Sections 103 and 148 thereof.
<br />D. It will, upon direction from the Comrnissioner of Finance, take such actions and
<br />furnish such documents as the Commissioner of Finance determines to be necessary to
<br />ensure that the interest to be paid on the G.O. Bonds is exempt from federal taxation, which
<br />• such action may include either; (i) compliance w~itl~ proceedings intended to classify the
<br />G.O. Bonds as a "qualified bond" within the meaning of Section 141(e) of the Code, (ii)
<br />changing the nature or terms of the Use Contract so that it complies with Revenue..
<br />Procedures 93-19 and 97-13, or (iii) compliance with Code provisions, regulations, or
<br />revenue procedures which amend or supersede the foregoing.
<br />E. It will not otherwise use any of the Grant, including earnings thereon, if any, or
<br />take or permit to or cause to be taken any action that would adversely affect the exemption
<br />from federal income taxation of the interest on the G.O. Bonds, nor otherwise omit, take, or
<br />cause to be taken any action necessary to maintain such tax exempt status, and if it should
<br />take, permit, omit to take, or cause to be taken, as appropriate, any such action, it shall take
<br />all lawful actions necessary to rescind or correct such actions or omissions promptly upon
<br />having knowledge thereof.
<br />F. In the event that the Public Entity eventually acquires an interest in the Real
<br />Property and, if applicable, the Facility, tlten it will not use the Real Property and, if
<br />applicable, the Facility in such a mariner as to cause the G.O. Bonds to be classified as
<br />"arbitrage bonds" under Section 148 of the Code.
<br />Section 6.03 Records Keeping and Reporting. The Public Entity shall maintain or
<br />cause to be maintained books, records, documents and other evidence pertaining to the costs or
<br />expenses associated with the completion of the Predesign Stage and, if accomplished, the
<br />acquisition of an interest in and, if applicable, the improvement of the Real Property and, in
<br />addition and if applicable, the acquisition, improvement, renovation, rehabilitation, or new
<br />Generic GO Grant Agreement 18 Ver - 7130/03
<br />for Pre-Design or Design Grants (Gnrc GO GA-PrDsgn Gmt)
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