reconvene regular meeting: 7:00 pm - Irvine Unified School District

provided that, no such amendment shall reduce the rate of interest or amount of principal or
extend the time of payment thereof with respect to any Note.
Section 6.03. Observance of Laws and Regulations. The Districts will
faithfully observe and perform all lawful and valid obligations or regulations now or hereafter
imposed on them by contract, or prescribed by any state or national law, or by any officer, board
or commission having jurisdiction or control, as a condition of the continued enjoyment of each
and every franchise, right or privilege now owned or hereafter acquired by them, including their
right to exist and carry on their respective businesses, to the end that such observance or
performance is material to the transactions contemplated hereby.
Section 6.04. Tax Covenants. (a) Each District will not take any action or fail
to take any action, if such action or failure to take such action would adversely affect the
exclusion from gross income of the interest payable on the District’s Note, as evidenced and
represented by the Note Participations, under Section 103 of the Code. Each District will not
directly or indirectly use or permit the use of any proceeds of the Note Participations or the
obligations which they evidence and represent or any other funds held hereunder or take or omit
to take any action that would cause the Note Participations or the obligation which they represent
to be “private activity bonds” within the meaning of Section 141(a) of the Code or obligations
which are “federally guaranteed” within the meaning of Section 149(b) of the Code.
(b) Each District will not directly or indirectly use or permit the use of any
proceeds of the Note Participations or the obligations which they represent or any other funds
held hereunder or take or omit to take any action that would cause the Note Participations or the
obligations which they evidence and represent to be “arbitrage bonds” within the meaning of
Section 148 of the Code. To that end, each District has covenanted to comply with all
requirements of Section 148 of the Code to the extent applicable to each Series of Notes. In the
event that at any time any District is of the opinion (which opinion may be based on an Opinion
of Counsel), that for purposes of this Section 6.04(b) it is necessary to restrict or to limit the yield
on the investment of any moneys held by the Trustee under this Trust Agreement with respect to
such District, such District shall so instruct the Trustee in writing, and the Trustee shall take such
action as may be necessary in accordance with such instructions.
Section 6.05. Liens. So long as any Note Participations are Outstanding, or any
Predefault Obligation or Reimbursement Obligation is outstanding, the Districts will not create
or suffer to be created any pledge of or lien on the Notes other than the pledge and lien hereof.
Section 6.06. Accounting Records and Statements. The Trustee shall keep
proper books of record and account in accordance with industry standards in which complete and
correct entries shall be made of all transactions made by the Trustee relating to the receipt,
investment, disbursement, allocation and application of all funds received by the Trustee
hereunder. Such records shall specify the account or fund to which each investment (or portion
thereof) held by the Trustee is to be allocated and shall set forth, in the case of each investment:
(a) its purchase price; (b) identifying information, including par amount, coupon rate, and
payment dates; (c) the amount received at maturity or its sale price, as the case may be; (d) the
amounts and dates of any payments made with respect thereto; and (e) such documentation as is
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