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Temporary Periods: One-Year Temporary Period means, as set forth in Treasury Regulations Section 1 .148-2(e)(6), the one-year temporary period exception to the yield restriction requirement of Code Section 148(a), which exception applies to Investment Proceeds. Three-Year Temporary Period means, as set forth in Treasury Regulations Section 1.148-2(e)(2), the three-year temporary period exception to the yield restriction requirement of Code Section 148(a), which exception applies to the nonrefunding portion of an issue only to the extent that the issuer reasonably expects that (i) 85 percent of the Net Sale Proceeds of such nonrefunding portion are to be allocated to expenditures on capital • projects by the end of the three-year period following the issue date; (ii) the issuer will within six months of the issue date incur a substantial binding obligation to a third party to expend at least 5 percent of the Net Sale Proceeds of the issue on capital projects; and (iii) the allocation of the Net Sale Proceeds of the issue to expenditures will proceed with due diligence. Underwriters means Smith Barney Shearson, Inc., Prudential Securities Incorporated, and Rauscher Pierce Refsnes Inc. Yield means that discount rate calculated as described in Section 4.1 of this Tax Certificate. II. General Tax Limitations 2.1 Cross-Reference. Article III below refers to the expectations and limitations relating to arbitrage; Article IV below refers to the expectations and limitations relating to yield and yield restriction; and Article V below refers to the expectations and limitations relating to rebate. 2.2 Governmental Bond Status. The City and the Authority represent, warrant and covenant as follows: 2.2.1 The City and the Authority will not allow more than ten percent of the facilities financed with the proceeds of the 1994 Bonds to be used in the trade or business of a Nongovernmental Person (other than as a member of the general public). For this purpose, management or operation of any such facility (within the meaning of Revenue Procedure 93-19, 1993- 11 I.R.B. 52 (the "Guidelines")) shall be treated as use in the trade or business of a Nongovernmental Person (other than as a member of the general public) unless such management or operation is pursuant to a contract (or contracts) that satisfies (or satisfy) the requirements of the Guidelines. 2.2.2 The City and the Authority will not allow the payment of more than ten percent of the principal of, or the interest on, the 1994 Bonds directly or indirectly to be (i) secured by any interest in property to be used in the trade or business of any Nongovernmental Persons (other than as a member of the general public) or by payments in respect of such property; or (ii) derived from payments in respect of property, or borrowed money, used or to be used in the trade or business of any Nongovernmental Persons (other than as a member of the general public). 2.2.3 Neither the City nor the Authority will loan more than five percent of the proceeds of the 1994 Bonds to Nongovernmental Persons. 2.3 Registration Requirement. The 1994 Bonds will be issued in registered form. LA1-69477.4 6