Resolution - #04-12-373 - 12/14/2004

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Debt Service Account: Funding; Investment Covenants. (a) The principal and interest on the Certificates are payable from the Debt Service Account. The Issuer has covenanted that any sums from time to time held in the Capital Account ami thc Debt Service Account (or any other account of the Issuer which will be used to pay debt service on thc Certificates in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield (after taking into account all temporary periods) shall not be invested at a yield in excess of the applicable yield restrictions imposed by s~fid arbitrage regulations on such investments. Other than the Debt Service Account, there is no other Fund or account of cash or securities which the Issuer has set aside and expects to invest or m',fintain at a yield greater than the yield on the Certificates for the purpose of paying debt scrx.'ic~ on the Certificates. (b) The Debt Service Account is a bona fide debt service fund (within the meaning of Section 1.148~1 (b) of the Regulations) which achieves a proper matching of revenues and debt scr¥'ic¢:: in each Bond Year m~d is depleted at least once a Bond Year except for a reasonable carryover amount not exceeding the greater of the earnings on the Debt Service Account for the immcdi~ttcly preceding Bond Year or one-twelfth (1/12th) of annual debt service on the ( :c~-ti Iicates fro' the immediately preceding Bond Year. Amounts deposited in the Debt Service /\ccotmt which will not be used to pay debt service on the Certificates within thirteen months of lhei~-receipt will be invested without regard to yield and receipts in the Debt Service Account which xvill not be used to pay debt service on the Certificates within thirteen months of their receipt will be invested without regard to yield to the extent they do not exceed the "minor porlion" oCS , which is an amount equal to the lesser orS100,000 or 5% of the Sale l'rocccds of the Certificates. All receipts in the Debt Service Account may be invested without rcga~'d to yield for a temporary period of thirty days from receipt. Amounts not entitled to a temporary period or within said minor portion will not be invested at a yield which is materially higher ~han thc yield on the Certificates, or will be invested without regard to yield in obligations wlaioh arc exempt fi'om federal income taxation under Section 103(a) of the Code and which are not "speci ficd private activity bonds" within the meaning of Section 57(a)(5)(D) of the Code. Yield Determination; Materially Higher. The yield on the Certificates is based on thc i,~suc price of the Certificates being the initial offering price to the public (excluding bond houses amd brokers) at which a substantial amount (at least 10%) of each maturity of the C'crti 5cate was sold. On the date hereof, the yield of the Certificates has been calculated to be %; this yield on the Certificates will be recalculated if and as required by the ('cdc or the Regulations. A "materially higher" yield is defined at Section 1.148-2(d)(2) of the Rcgulaiions and is generally one-eighth of one percent (0.125%). Rebate. The sale proceeds of the Certificates are entitled to an exception to rebate il' ~hcy will all (other than amounts constituting a bona fide debt service fund) be expended within the period of time provided in the six-month exception to the rebate requirement. The gross proceeds of the Certificates (treating amounts in a bona fide debt service fund as not being gross proceeds) will be allocated to expenditures for the governmental purposes of the issue x¥ithi~ the six month period begi~ming on the date hereof. It is reasonably anticipated that no gross proceeds will arise after such six months, and for this purpose excesses over bona fide debt service Fund amounts will not be permitted to accumulate in the Debt Service Account. ! ? i 4~,%,. I 3