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deemed to limit the right of the Authority to issue Bonds for the purpose of refunding any Outstanding <br /> Bonds,and such issuance shall not be deemed to constitute an extension of maturity of the Bonds. <br /> Against Encumbrances. The Authority shall not create, or permit the creation of, any pledge, <br /> lien, charge or other encumbrance upon the Revenues and other assets pledged or assigned under the <br /> Indenture while any of the Bonds are Outstanding, except the pledge and assignment created by the <br /> Indenture. Subject to this limitation, the Authority expressly reserves the right to enter into one or more <br /> other indentures for any of its corporate purposes,and reserves the right to issue other obligations for <br /> such purposes. <br /> Power to Issue Bonds and Make Pledge and Assignment. The Authority is duly authorized pursuant <br /> to law to issue the Bonds and to enter into the Indenture and to pledge and assign the Revenues and <br /> other assets purported to be pledged and assigned, respectively, under the Indenture in the manner <br /> and to the extent provided in the Indenture. The Bonds and the provisions of the Indenture are and will <br /> be the legal,valid and binding special obligations of the Authority in accordance with their terms,and <br /> the Authority and the Trustee shall at all times, subject to the provisions of the Indenture and to the <br /> extent permitted by law, defend, preserve and protect said pledge and assignment of Revenues and <br /> other assets and all the rights of the Bond Owners under the Indenture against all claims and demands <br /> of all persons whomsoever. <br /> Accounting Records. The Trustee shall at all times keep, or cause to be kept, proper books of <br /> record and account, prepared in accordance with industry standards, in which complete and accurate <br /> entries shall be made of all transactions made by it relating to the proceeds of Bonds, the Revenues,the <br /> Lease Agreements and all funds and accounts established pursuant to the Indenture. Such books of <br /> record and account shall be available for inspection by the Authority and the Members, during business <br /> hours and under reasonable circumstances. <br /> No Additional Obligations. The Authority covenants that no additional bonds, notes or other <br /> indebtedness shall be issued or incurred which are payable out of the Revenues in whole or in part. <br /> Tax Covenants <br /> (a)Private Business Use Limitation.The Authority shall assure that the proceeds of the <br /> Bonds are not used in a manner which would cause the Bonds to be "private activity bonds" <br /> within the meaning of section 141(a)of the Code. <br /> (b) Private Loan Limitation.The Authority shall assure that no more than five percent <br /> (5%) of the proceeds of the Bonds are used, directly or indirectly, to make or finance a loan <br /> (other than loans constituting nonpurpose obligations as defined in the Code or constituting <br /> assessments)to persons other than state or local government units. <br /> (c)Federal Guarantee Prohibition.The Authority shall not take any action or permit or <br /> suffer any action to be taken if the result of the same would be to cause the Bonds to be <br /> "federally guaranteed" within the meaning of section 149(b) of the Code. <br /> (d) No Arbitrage. The Authority shall not take, or permit or suffer to be taken by the <br /> Trustee or otherwise, any action with respect to the Bond proceeds which, if such action had <br /> been reasonably expected to have been taken, or had been deliberately and intentionally <br /> taken, on the Closing Date, would have caused the Bonds to be "arbitrage bonds" within the <br /> meaning of section 148(a)of the Code. <br /> (e)Rebate of Excess Investment Earnings to United States.The Authority shall take any <br /> and all actions necessary to assure compliance with section 148(f) of the Code,relating to the <br /> rebate of excess investment earnings, if any, to the federal government, to the extent that such <br /> section is applicable to the Bonds. Payment of any amounts due under such section 148(f) shall <br /> be made by the Authority from amounts provided by the Members under the Lease <br /> Agreements. In order to provide for the administration of this paragraph(e),the Authority may <br /> Appendix A <br /> Page 11 <br />