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Name of Recipient Agreement No.: XX-XXX-550 Project No.: C-06-XXXX-XXX 4.22 Rebate Obligations. If the Recipient satisfies the requirements of one of the spending exceptions to rebate specified in Section 1.148-7 of the Treasury Regulations, amounts earned from investments, if any, acquired with the Project Funds will not be subject to the rebate requirements imposed under Section 148(f)of the Code. If the Recipient fails to satisfy such requirements for any period, it will notify the State Water Board and the Bank immediately and will comply with the provisions of the Code and the Treasury Regulations at such time, including the payment of any rebate amount or any yield reduction payments calculated by the State Water Board or the Bank. 4.23 No Federal Guarantee. i i The Recipient will not directly or indirectly use any of the Project Funds in any manner that would cause the Bonds to be"federally guaranteed"within the meaning,of Section 149(b) of the Code, taking into account various exceptions including any guarantee relatedtoimvestments during an initial temporary period until needed for the governmental purpose of the Bonds, investments,as part of a bona fide debt service fund, investments of a reasonably required reserve or replacement.fund, investments in bonds issued by the United States Treasury, investments in refunding escrow funds orcertain other investments permitted under the Treasury Regulations. \, 4.24 No Notices or Inquiries From IRS. v N `^�_ A NJ Within the last 10 years, the Recipient has trot received any notice„of a final action of the Internal Revenue Service that determines that interesfpaid'or,payable on,any debt obligation of the Recipient is or was includable in the gross income of an obvner'or beneficial owner thereof for federal income tax purposes under the Code. .. N. \ l 4.25 Amendments. rf The provisions in this Articlemay be amended, modified or supplemented at any time to reflect changes • in the Code upon obtaining'written approval of the State Water Board and the Bank and an opinion of Nationally-Recognized Bond`Counsel tattle effect thatsuch amendment, modification or supplement will not adversely affect the exclusionfrom federat.gross.income of interest on the Bonds pursuant to Section 103 of the Code. ",. N 4.26 Application. �, The provisions in this Article IV shall'apply to a Recipient only if any portion of the Project Funds is derived from proceeds.of Bonds. 1 `4 4.27 Reasonable Expectations. The Recipient warrants that;to the best of its knowledge, information and belief, and based on the facts and estimates as set forth in the tax covenants in this Article, the expectations of the Recipient as set forth in this Article are reasonable. The Recipient is not aware of any facts or circumstances that would cause it to question the accuracy or reasonableness of any representation made in the provisions in this Article IV. ARTICLE V MISCELLANEOUS PROVISIONS 5.1 Covenants. (a) Tax Covenant. Notwithstanding any other provision hereof, the Recipient covenants and agrees that it will comply with the Tax Covenants set forth in Article IV of this Agreement. 21