Agmt15 City of RWC Public Financing Authority Water Revenue Refunding Bonds

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Authority may at any time, or from time to time, pledge or encumber the Revenues in connection with the issuance or execution of Additional Bonds as permitted by Section 2.12 hereof. Section 5.07. Punctual Payment. The Authority shall punctually pay or cause to be paid the principal of and interest on all the Bonds, in strict conformity with the terms of the Bonds and of this Indenture, according to the true intent and meaning thereof, but only out of Revenues and other assets pledged for such payment as provided in this Indenture. Section 5.Q8. Extension of Payment of Bonds. The Authority shall not directly or indirectly extend or assent to the extension of the maturity of any �f the Bonds or the time of payment of any claims for interest by the purchase of such Bonds or by any other arrangement, and in case the maturity of any of the Bonds or the time of payment of any such claims for interest shall be extended, such Bonds or claims for interest shall not be entitled, in case of any default hereunder, to the benefits of this Indenture, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest thereon which shall not have been so extended. Nothing in this Section 5.08 shall be deemed to limit the right of the Authority to issue Bonds for the purpose of refunding any Outstanding Bonds, and such issuance shall not be deemed to constitute an extension of maturity of the Bonds. Section 5.09. Tax Covenants. (a) Private Activitv Bond Limitation. The Authority will assure that the procesds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of section 141(b)of the Code or the private loan financing test of section 141(c) of the Code. (b) Federal Guarantee Prohibition. The Authority will not take any action or permit or suffer any action to be taken if the result of such action would be to cause any of the Bonds to be "federally guaranteed"within'the meaning of section 149(b) of the Code. (c) Rebate Requirement. The Authority will take any and all actions necessary to assure compliance with section 148(� of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Bonds. (d) No Arbitraqe. The Authoriry will not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the proceeds of the Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds"within the meaning of section 148 of the Code. (e) Maintenance of Tax-Exemption. The Authority will take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Bonds. (fl Record Retention. The Authoritv will retain its records of all accountinp and monitoring it carries out with respect to the Bonds for at least 3 years after the Bonds mature or are redeemed (whichever is earlier); however, if the Bonds are redeemed and refunded, the Authofity wilt retain its records of accounting and monitoring at least 3 years after the ea�lier of the maturity or redemption of the obligations that refunded the Bonds. 27