electronically must comply with Section 4.01 of Revenue Procedure 97-22, which generally
provides that an electronic storage system must (1) ensure an accurate and complete transfer
of the hardcopy records which indexes, stores, preserves, retrieves and reproduces the
electronic records, (2) include reasonable controls to ensure integrity, accuracy and reliability
of the electronic storage system and to prevent unauthorized alteration or deterioration of
electronic records, (3) exhibit a high degree of legibility andreadability both electronically and
in hardcopy, (4) provide support for other books and records of the District, and (5) not be
subject to any agreement that would limit the ability of the IRS to access and use the electronic
storage system on the District’s premises.
Section 8. Miscellaneous
(a) Form 8038-G. A copy of the completed and fully executed IRS Form 8038-G
(Information Return for Tax-Exempt Governmental Obligations) is attached to this Tax
Agreement as Exhibit B. The Form 8038-G was prepared by Special Tax Counsel based on
representations and covenants by the Issuer and the District containedin this Tax Agreement
or otherwise made by the Issuer andthe District. The information contained on Form 8038-G
is true, complete and correct to the knowledge of the undersigned, and the undersigned is
authorized to sign the Form 8038-G on behalf of the Issuer and deliver it to Special Tax
Counsel for filing with the IRS.
(b) Single Issue. No other debt obligations ofthe Issuer: (1) are being sold within
15 days of the execution and delivery of the Lease Agreement, (2) are being sold under the
same plan of financing as the Lease Agreement, and (3) are expected to be paid from
substantially the same source of funds as the Lease Agreement (disregarding guarantees from
unrelated parties, such as bond insurance).
(c) Bank Qualification. TheIssuer has not designated the Lease Agreement asa
“qualified tax-exempt obligation” under Code § 265(b)(3).
(d) No Federal Guaranty. The payment of rental payments under the Lease
Agreement are not, and neither the Issuer nor the District will permit the payment of rental
payments under the Lease Agreement to be, directly or indirectly guaranteed by the United
States of America or any agency thereof.
(e) Hedge Bonds. The Issuer and the District reasonably expect that at least 85% of
the net sale proceeds (the sale proceeds of the Lease Agreement less any sale proceeds invested
in areserve fund) of the Lease Agreement will be used to carry out the governmental purpose of
the Lease Agreement within 3 years after the Closing Date, and not more than 50% of the
proceeds of the Lease Agreement will be investedin Investments having a substantially
guaranteed Yield for 4 years or more.
(f) Registration Requirement; Record Owner. The Issuer will maintain or cause to be
maintained a record of the owner(s) of the Lease Agreement and the person/entity entitled to
the receipt of the interest portions of rental payments under the Lease Agreement. Transfer of
ownership of the Lease Agreement is effective only if enteredin these records. The Agreement
will be heldin registered form within the meaning of Code § 149(a).
(g) Reliance. The Issuer andthe District understand that their certifications will be
relied upon by the law firm of Gilmore & Bell, P.C., in rendering its opinion as to the validity of
the Lease Agreement andthe exclusion from federal gross income of the interest portion of
payments payable by the Issuer under the Lease Agreement.
