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lives of the respective Lease Agreements); (ii) a reasonably expected life of 20 years from completion, in the case of the System Project as represented to the Authority by the County; and (iii) the certifications of the Members set forth in the respective Proceeds Certificates in the case of the reasonably expected economic lives of the respective Local System Components and Capital Projects (including in the case of the City of Fullerton, the projects financed with the Fullerton Prior Obligations). (o) No Improper Financial Advantage. The transaction contemplated herein does not represent an exploitation of the difference between tax-exempt and taxable interest rates to obtain a material financial advantage and does not overburden the tax- exempt bond market in that the Authority is not issuing more bonds, issuing bonds earlier, or allowing bonds to remain outstanding longer than is otherwise reasonably necessary to accomplish the governmental purposes of the bonds. (p) Bond Year for the Bonds. The Authority hereby selects each period from February 2 through February 1 of the following calendar year as the bond years for the Bonds, except that the first bond year will commence on the date hereof and the last bond year will end on the date of payment of the Bonds in full. (q) Rebate Requirement. The Authority has covenanted in the Indenture to comply with requirements for rebate of excess investment earnings to the federal government to the extent applicable and acknowledges that the first payment of excess investment earnings, if any, is required to be rebated to the federal government no later than sixty (60)days after the end of the fifth (5th)bond year for the Bonds. No portion of the Bonds will constitute a private activity bond within the meaning of section 141(a) of the Internal Revenue Code of 1986 (the "Code"), the average maturity of the Bonds is greater than five (5) years and none of the interest rates on the Bonds vary during the term of the Bonds. As a consequence of the foregoing, investment earnings on the Debt Service Funds will be excluded for the purposes of computation of the amount required to be rebated to the federal government as referenced in this subparagraph without regard to the total amount of said earnings. The Fullerton Prior Obligations are not subject to the requirement for rebate of excess investment earnings to the federal government because the Fullerton Prior Obligations were not issued on the basis that interest thereon was excluded from gross income for purposes of federal income taxation. (r) Yield of the Bonds. The yield of the Bonds is 5.28360%, determined on the basis of regularly scheduled principal and interest payments on the Bonds, discounted to $27,440,380.40, representing (A) the issue price of the Bonds of $27,629,380.40 (being the face amount of the Bonds of $27,725,000, less original issue discount of $95,619.60, less (B) Insurance fees of $189,000.00. The Underwriter has represented that (i) based upon reasonable expectations and actual facts which existed on the date the Underwriter purchased the Bonds from the Authority, the initial offering price of each maturity of the Bonds to the public (excluding bondhouses,brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which a substantial amount of each maturity of the Bonds was to be sold to the public on the date hereof is set forth on Exhibit A attached hereto and by this reference incorporated herein; (ii) the Bonds of each maturity were actually offered to the general public in a bona fide public offering for the prices set forth in Exhibit A; (iii) the present value of the fees for the Insurance is 6