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SECTION 407. DEBT SERVICE FUND, RESERVE ACCOUNT AND SINKING FUNDS. (A~ DEBT SERVICE FUND. The County has heretofore established the Certificate Payment Fund for the purpose of holding the Financing Payments and other funds needed to pay when due the principal of and interest on the Certificates. The Certificate Payment Fund is intended to be used primarily to achieve a proper matching of revenues and debt service on the Certificates within each Certificate of Participation Year, and is a"bona fzde debt service fund" within the meaning of Regulations § 1.148-1(b). Any money deposited in the Certificate Payment Fund will be spent within a one-year period beginning on the date of deposit (and any amount received from investment of money held in this account will be spent within a one-year period beginning on the date of receipt), except for a reasonable carryover amount (not to exceed the greater of the previous Bond Year's investment earnings on the Certificate Payment Fund or one-twelfth of the previous Bond Year's debt service on the Certificates). The money in the Certificate Payment Fund is expected to be completely depleted once each year, except for the carryover amount described above. (B~ NO OTHER SiNKING FUNDS. Except for the Certificate Payment Fund, there are no sinking funds or reserve or replacement fiinds of any kind established with respect to the Certificates. SECTION 4OH. MISCELLANEOUS. (A) NO OVERISSUANCE. The Certificate of Participation Proceeds do not eYCeed the amount required by the County to pay the estimated capital costs of the Courthouse Square Project (including costs of issuance incurred in connection with the issuance and sale of the Certificates). (B) NO SALE OF F[NANCED FACILIT[ES. The Courthouse Square Project to be financed from Certificate of Participation Proceeds is not expected to be sold while the Certificates are outstanding, except in the ordinary.course of business as such facilities become obsolete or worn out. (C~ NO REPLACEMENT OF INVESTED FUNDS. The Certificates are not being IssUed ln order to permit the County to invest other funds at a higher yield than the yield on the Certificates. (D) NO FEDERAL GUARANTEE. The payment of the principal of and interest on the Certificates is not directly or indirectly guaranteed by the United States of America or any agency or instrumentality thereof, all within the meaning of Code § 149(b). (E~ NOT HEDGE BONDS. None of the Proceeds of the Certificates will be invested in an investment with a substantially guaranteed yield for 4 years or more, and thus not more than 50 GENERAL AND TAX CERT[FICATE PAGE 9