Arbitrage Compliance. The Issuer and the Company acknowledge that the continued exclusion of interest on the Bonds from gross income of the recipients for purposes of federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed by Section 148 of the Code, including the rebate requirement described in Sections 4.03, 4.04 and 4.05 below. The Issuer shall not control or otherwise be involved in any investment decisions relating to the proceeds of the Bonds, nor shall it be required to monitor any such investment decisions. The Company hereby agrees to take the actions described in Sections 4.03 through 4.05 below with respect to the investment of Gross Proceeds on deposit in the funds and accounts established under the Indenture and to direct the Trustee in writing to make the required transfers and dispositions described in Sections 4.03, 4.04 and 4.05 below.
Appears in 2 contracts
Sources: Tax Regulatory Agreement, Tax Regulatory Agreement (Environmental Power Corp)