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<br />21 <br />in order to further and more fully vest in the Trustee and the Owners all advantages, benefits, <br />interests, powers, privileges and rights conferred or intended to be conferred upon them by this <br />Indenture. <br /> <br />Section 5.06. Against Encumbrances. The Authority hereby covenants that there is no <br />pledge of or lien on Revenues senior to the pledge and lien securing the Bonds. The Authority <br />will not make any pledge of or place any lien on the Revenues, provided that the Authority may <br />at any time, or from time to time, pledge or encumber the Revenues in connection with the <br />issuance or execution of Additional Bonds as permitted by Section 2.12 hereof. <br /> <br />Section 5.07. Punctual Payment. The Authority shall punctually pay or cause to be paid <br />the principal of and interest on all the Bonds, in strict conformity with the terms of the Bonds and <br />of this Indenture, according to the true intent and meaning thereof, but only out of Revenues and <br />other assets pledged for such payment as provided in this Indenture. <br /> <br />Section 5.08. Extension of Payment of Bonds. The Authority shall not directly or <br />indirectly extend or assent to the extension of the maturity of any of the Bonds or the time of <br />payment of any claims for interest by the purchase of such Bonds or by any other arrangement, <br />and in case the maturity of any of the Bonds or the time of payment of any such claims for interest <br />shall be extended, such Bonds or claims for interest shall not be entitled, in case of any default <br />hereunder, to the benefits of this Indenture, except subject to the prior payment in full of the <br />principal of all of the Bonds then Outstanding and of all claims for interest thereon which shall not <br />have been so extended. Nothing in this Section 5.08 shall be deemed to limit the right of the <br />Authority to issue Bonds for the purpose of refunding any Outstanding Bonds, and such issuance <br />shall not be deemed to constitute an extension of maturity of the Bonds. <br /> <br />Section 5.09. Tax Covenants. <br /> <br />(a) Private Activity Bond Limitation. The Authority will assure that the proceeds of the <br />Bonds are not so used as to cause the Bonds to satisfy the private business tests of section <br />141(b) of the Code or the private loan financing test of section 141(c) of the Code. <br /> <br />(b) Federal Guarantee Prohibition. The Authority will not take any action or permit or <br />suffer any action to be taken if the result of such action would be to cause any of the Bonds to be <br />“federally guaranteed” within the meaning of section 149(b) of the Code. <br /> <br />(c) Rebate Requirement. The Authority will take any and all actions necessary to <br />assure compliance with section 148(f) of the Code, relating to the rebate of excess investment <br />earnings, if any, to the federal government, to the extent that such section is applicable to the <br />Bonds. <br /> <br />(d) No Arbitrage. The Authority will not take, or permit or suffer to be taken by the <br />Trustee or otherwise, any action with respect to the proceeds of the Bonds which, if such action <br />had been reasonably expected to have been taken, or had been deliberately and intentionally <br />taken, on the date of issuance of the Bonds would have caused the Bonds to be “arbitrage bonds” <br />within the meaning of section 148 of the Code. <br /> <br />(e) Maintenance of Tax-Exemption. The Authority will take all actions necessary to <br />assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds <br />to the same extent as such interest is permitted to be excluded from gross income under the Code <br />as in effect on the date of issuance of the Bonds. <br />8.A. - Page 141 of 255 <br />769