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or Executive Director are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the Authority. 21. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code,the Authority hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not"private activity bonds" as defined in Section 141 of the Code; (c) the Authority hereby designates the Bonds as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax exempt obligations (other than private activity bonds,treating qualified 501(c)(3)bonds as not being private activity bonds)which will be issued by the Authority(and all entities treated as one issuer with the Authority, and all subordinate entities whose obligations are treated as issued by the Authority)during this calendar year 2008 will not exceed$10,000,000; and (e) not more than$10,000,000 of obligations issued by the Authority during this calendar year 2008 have been designated for purposes of Section 265(b)(3) of the Code. • The Authority shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 22. Tax Covenants. In order to ensure that the interest on the Bonds shall at all times be excluded from federal gross income,the Authority specifically represents,warrants and covenants with all holders of the Bonds, as follows: (a) It will fulfill all conditions specified in Sections 103 and 141 through 150 of the Code and applicable Treasury Regulations as necessary to maintain the tax exempt status of the interest borne by the Bonds. (b) The Project, including any property financed or otherwise provided for by the net proceeds of the Bonds,will be owned by the Authority and used by the general public or organizations described in Section 501(c)(3)of the Code. (c) Less than five percent of the net proceeds of the Bonds will be used to provide property used either(i)by an organization described in Section 501(c)(3)of the Code in an activity that constitutes an unrelated trade or business,or(ii)in a trade or business by a person other than an organisation described in Section 501(c)(3)of the Code or a governmental unit (within the meaning of Section 141 of the Code). 410 (d) It shall make no use of the Project, including but not limited to entering into any agreement for the management of the Project or any similar agreement,the effect of which 2114906v1 14