Section 6. The Board covenants to proceed with the
construction of the Project with due diligence and that the
University will spend all of the proceeds derived from the
sale of the Bonds issued to finance a portion of the Project
for costs associated with the Project. The Board further
covenants that the University, either alone or in conjunction
with the Treasurer of Virginia, will, to the extent permitted
by Virginia law, take all other actions necessary to maintain
the exemption of interest on the Bonds from gross income
under Federal and Virginia law and, unless advised in writing
by a firm of attorneys nationally recognized in the subject
of tax-exempt obligations that such compliance is not necessary
in order to maintain such exemption, to comply with the
provisions contained in the Internal Revenue Code of 1986, as
amended (the "Code"), relating to tax-exempt obligations,
including without limitation (a) refunding any obligations
previously issued to finance the Project within 30 days of
the issuance of the Bonds, (b) restricting the yield on the
investment of the proceeds of the Bonds, including amounts
treated as proceeds by the Department of the Treasury regulations
promulgated pursuant to the Code, and (c) paying any
required rebate to the United States.
