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(i) Lessee is not leasing the Equipment for the purpose of putting, and does not <br /> intend to put, the Equipment to any consumer use within the meaning of any applicable <br /> truth-in-lending or similar laws. <br /> 0) Lessee acknowledges and agrees that the rental payments have been calculated <br /> by Lessor assuming that the interest portion of each rental payment is exempt from federal <br /> income taxation. Lessee will do or refrain from doing all things necessary or appropriate to <br /> insure that the interest portion of the rental payment is exempt from federal income taxation, <br /> including, but not limited to, executing and filing all information statements required by <br /> Paragraph 149(e) of the Code and timely paying, to the extent of available funds, amounts, if <br /> any, required to be rebated to the United States pursuant to Paragraph 148(f) of the Code. <br /> (k) Lessee acknowledges and agrees that the total annual rental payments in each <br /> fiscal year shall be charged against and paid from the general revenues for such fiscal year. <br /> (1) The aggregate principal amount of short-term financing obligations incurred by <br /> Lessee pursuant to Section 2 of "The City and County Government Development Bond and <br /> Short-Term Financing Amendment" to the Constitution of the State of Arkansas does not exceed <br /> five percent (5%) of the assessed value of taxable property located within the municipality, if <br /> Lessee is a municipality, or two and one-half percent (2'/s%) of the assessed value of taxable <br /> property, if the Lessee is a county, as determined by the last tax assessment completed before the <br /> obligations were incurred by the Lessee under this Agreement. <br /> �. Lessee acknowledges that the representations, covenants and warranties set forth <br /> in Paragraphs 60), 6(k), 6(1) and 7 shall survive the expiration of this Agreement and that Lessor <br /> may pursue any applicable remedies for the breach of such representations, covenants and <br /> warranties at any time. <br /> 7. Tax Exemption.Lessee acknowledges that Lessor has agreed to enter into this <br /> Agreement on the condition that a certain exemption from non-deductibility of interest expense <br /> under Section 265(b) of the Code is available. Said exception is subject to certain conditions <br /> relating to Lessee's use of the Equipment and to Lessee's issuance of tax-exempt obligations. In <br /> that regard, Lessee represents, covenants and warrants that: <br /> (a) The Equipment will not be used, directly or indirectly in a trade or business <br /> carried on by any person other than a governmental unit, except for such use as a member of the <br /> general public. <br /> (b) No portion of the rental payments payable hereunder: (i) will be secured, <br /> directly or indirectly, by property used or to be used in a trade or business carried on by a person <br /> other than a governmental unit, except for such use as a member of the general public, or by <br /> payments in respect of such property; or (ii) will be derived from payments, whether or not to <br /> Lessee, in respect of property or borrowed money used or to be used for a trade or business <br /> carried on by any person other than a governmental unit. <br /> (c) No portion of the gross proceeds of the Agreement will be used (directly or <br /> indirectly)to make or finance loans to persons other than governmental units. <br /> 5 <br />