Tax Covenants

(A)The Government shall not use or permit the use of any proceeds of the 1997 Series A Bonds or any other funds of the Government, directly or indirectly, to acquire any securities or obligations, and shall not use or permit the use of any amounts received by the Government in any manner, and shall not take or permit to be taken any other action or actions, which would cause any such Bond to be an “arbitrage bond” within the meaning of § 148 of the Code, to be “federally insured or guaranteed” within the meaning of § 149(b) of the Code or to be a “private activity bond” within the meaning of § 141(a) of the Code.

(B)The Government shall at all times do and perform all acts and things permitted by law and this Indenture which are necessary or desirable in order to assure that interest paid on the 1997 Series A Bonds (or on any of them) shall be exempt from federal income taxes.