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Fund, and (ii) (on and after the completion of the acquisition, construction, and installation of the Project) deposited in the Revenue Fund. 3.6 No Replacement Proceeds/No Other Replacement Proceeds. 3.6.1 Neither the City and the Authority nor any related persons will use any proceeds of the 1994 Bonds directly or indirectly to replace funds of the City and the Authority or any related persons that are used directly or indirectly to acquire investment property reasonably expected to produce a yield materially higher than the yield on the 1994 Bonds. 3.6.2 The City and the Authority reasonably expect that the term of the 1994 Bonds is no longer than is reasonably necessary for the governmental purposes of the 1994 Bonds. 3.6.3 Weighted Average Maturity/Remaining Useful Life. (i) The weighted average maturity of the 1994 Bonds is 22.312 years, as set forth by the Underwriters on Exhibit A attached hereto. (ii) The Project consists of buildings and similar facilities (see Section 1 .7 hereof). Under Revenue Procedure 62-21, 1962-2 C.B. 418, a building has an expected economic life of 40 years as of the date it is placed in service. None of the elements of the Project has been placed in service as of the date hereof. Accordingly, one hundred and twenty percent (120%) of the remaining expected economic life of the Project is 48 years. Accordingly,the weighted average maturity of the 1994 Bonds does not exceed one hundred and twenty percent (120%) of the remaining average remaining reasonably expected economic life of the assets financed or refinanced with proceeds of the 1994 Bonds. 3.7 No Overissuance. Proceeds from the sale of the 1994 Bonds, taking into account anticipated investment income thereon until expended, do not exceed the amount necessary (i) to pay certain capital costs of the Project; (ii) to fund a debt service reserve fund with respect to the 1994 Bonds; (iii) to pay the fee for the Guarantee; and (iv) to pay costs of issuance. 3.8 Bona Fide Debt Service Funds. The Bona Fide Debt Service Funds will be used primarily to achieve a proper matching of revenues and debt service within each bond year. With respect to the Bona Fide Debt Service Funds: (i) to the extent amounts are deposited therein, the Bona Fide Debt Service Funds will be depleted at least once a year except for a carryover amount not to exceed the greater of one-twelfth of annual debt service or one year's earnings on such Funds in the aggregate; (ii) any amounts contributed to such Funds will be spent within thirteen (13) months of the date of such contribution to pay debt service on the 1994 Bonds; and (iii) any amount received from the investment or reinvestment of moneys held in such Funds will be spent within one year of receipt thereof. Amounts in the Bona Fide Debt Service Funds will be invested without regard to yield. 3.9 Rebate Fund. The City and the Authority have covenanted or hereby covenant not to use moneys on deposit in any fund or account in connection with the 1994 Bonds in a manner which will cause the 1994 Bonds to be arbitrage bonds within the meaning of Section 148 of the Code. To that end, the Rebate Fund is created pursuant to the Indenture. The amount required to be held in the Rebate Fund at any point in time is determined pursuant to the requirements of the Code, including particularly Section 148(f) of the Code and the regulations applicable thereto. Moneys in the Rebate Fund are neither pledged to nor expected to be used to pay debt service on the 1994 Bonds. Issue Price Proceeds and Investment Proceeds are not expected to be held in the Rebate Fund. Any LA1-69477.4 9