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SECTION 407. DEBT SERVICE FUND, RESERVE ACCOUNT AND SINKIN~ FUNDS. (A) DEBT SErtv~cE FuNn. The County has heretofore established the Ce tificate 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 o the Certificates within each Certificate of Participation Year, and is a"bona fide debt service fund" within the meaning of Regulations § 1.148-1(b). Any money deposited in the Certificate P yment Fund will be spent within a one-year period beginning on the date of deposit (and any amo nt 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 t~e greater of the previous Bond Year's investment earnings on the Certificate Payment Fund or ne-twelfth of the previous Bond Year's debt service on the Certificates). The money in the Ce tificate Payment Fund is expected to be completely depleted once each year, except for the arryover amount described above. ~~ (B~ NO OTHER SINKING FUNDS. Except for the Certificate Payment F~nd, there are no sinking funds or reserve or replacement funds of any kind established wi h respect to the Certificates. ' SECTION 4OH. MISCELLANEOUS. ~ (a) NO OVERISSUANCE. The Certificate of Participation Proceeds o not exceed the amount required by the County to pay the estimated capital costs of the C urthouse Square Project (including costs of issuance incurred in connection with the issuanc and sale of the Certificates). ~, ~ (B) NO SALE OF FINANCED FACILITIES. The Courthouse Square Proj~ct to be financed from Certificate of Participation Proceeds is not expected to be sold while th~e Certificates are outstanding, except in the ordinary course of business as such facilities become I obsolete or worn out. I (C) NO REPLACEMENT OF INVESTED FUNDS. The Certificates are n t being issued in order to permit the County to invest other funds at a higher yield than the yield on the Certificates. , (n) NO FEDERAL GUARANTEE. The payment of the principal of a d interest on the Certificates is not directly or indirectly guaranteed by the United States of Amer ca 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 percent of the Gross Proceeds will be invested in an investment having a substa~tially guaranteed GENERAL AND TAX CERTIFICATE PAGE 9