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determining the Maximum Rate and the percentage of the Index used in calculating the <br /> Non-Payment Rate pursuant to subsection (a) above by means of a Notice of Proposed <br /> Percentage Change delivered in writing at least 10 days prior to the Auction Date on which <br /> the Market Agent desires to effect the change, to the Authority, the Trustee and the Auction <br /> Agent. Such notice shall be effective only if it is accompanied by the form of an Opinion <br /> of Bond Counsel to the effect that such adjustment is authorized by this Section and satisfies <br /> the requirements of the Indenture and this Appendix, is permitted under the Code and will <br /> not have an adverse effect on the exclusion of interest on any of the ARS and IRS from <br /> gross income for federal income tax purposes. <br /> (c) An adjustment in the percentages used to determine the Minimum Rate, <br /> the Maximum Rate and the Non-Payment Rate shall take effect on an Auction Date only if: <br /> (i) The Trustee and the Auction Agent receive, by 11:00 a.m., New York <br /> City time, on the Business Day immediately preceding such Auction Date, a Notice <br /> of Percentage Change from the Market Agent by telex, telecopy or similar means, <br /> (A) authorizing the adjustment of the percentage used to determine the Minimum <br /> Rate, the Applicable Percentages used to determine the Maximum Rate and the <br /> percentage of the Index used to determine the Non-Payment Rate which shall be <br /> specified in such authorization, and (B) confirming that Bond Counsel expects to be <br /> able to give an opinion on or prior to such Auction Date to the effect that the <br /> adjustment in the percentage used to determine the Minimum Rate, the Applicable <br /> Percentages used to determine the Maximum Rate and the percentage of the Index <br /> used to determine the Non-Payment Rate is authorized by the Indenture and this <br /> Appendix, is permitted under the Code and will not have an adverse effect on the <br /> exclusion of interest on the ARS and IRS from gross income for federal income tax <br /> purposes; and <br /> (ii) the Trustee and the Auction Agent receive by 9:30 a.m., New York City <br /> time, on such Auction Date, an opinion of Bond Counsel to the effect that the <br /> adjustment in the percentage used to determine the Minimum Rate, the Applicable <br /> Percentages used to determine the Maximum Rate and the percentage of the Index <br /> used to determine the Non-Payment Rate is authorized by the Indenture and this <br /> Appendix, are permitted under the Code, and will not have an adverse effect on the <br /> exclusion of interest on the ARS and IRS from gross income for Federal income tax <br /> purposes. <br /> If any of the conditions referred to in (i) above are not met, the existing <br /> percentage used to determine the Minimum Rate, the Applicable Percentages used to <br /> determine the Maximum Rate and the percentage of the Index used to determine the <br /> Non-Payment Rate shall remain in effect and the rate of interest on ARS for the next <br /> succeeding Auction Period, except as provided in Section 3(c) of this Appendix, shall be <br /> determined in accordance with the Auction Procedures. If any of the conditions referred to <br /> in (ii) above are not met, the existing percentage used in determining the Minimum Rate, <br /> the percentage of the Index used in determining the Non-Payment Rate and the Applicable <br /> LA1-63221.5 A-17 <br />