Section 3. The Board represents and covenants that the Institution has not and
will not permit the proceeds of the Refunded Bonds to which the provisions of Section
141 of the 1986 Code apply to be used in any manner that would result in (a) 5% or
more of such proceeds being used in a trade or business carried on by any person other
than a governmental unit, as provided in Section 141(b) of the 1986 Code, (b) 5% or
more of such proceeds being used with respect to any output facility within the meaning
of Section 141(b)(4) of the 1986 Code, or (c) 5% or more of such proceeds being used
directly or indirectly to make or finance loans to any person other than a governmental
unit, as provided in Section 141(c) of the 1986 Code. The Institution need not comply
with such covenants if the Institution obtains the written approval of the State Treasurer
and an opinion of nationally recognized bond counsel acceptable to the Treasury Board
that such covenants need not be complied with to prevent the interest on the Refunded
Bonds or the Refunding bonds from being includable in the gross income of the owners
thereof for federal income tax purposes.
