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(c) any disposition Proceeds resulting from the Deliberate <br />Action (other than those related to the provision of services) are used to <br />pay Debt Service on the Obligations on the next available payment date <br />or, within 90 days of receipt, are deposited into a yield- restricted escrow to <br />be used to pay Debt Service on the next available payment date. <br />Under these circumstances, the non - qualified Obligations are treated as reissued <br />as of the date of the Deliberate Action, and must remain qualifying Tax - Exempt <br />Obligations throughout their term. <br />C. Timely Remediation. The City must correct any noncompliance and <br />complete any remedial actions in a timely manner. <br />4. Examples of Deliberate Action. <br />a. Lease to a Private Person. A Deliberate Action generally occurs if the City <br />(i) leases space within the project to a Private Person and that use, when added to any <br />other Private Business Use, exceeds 5% or 10 %, as applicable, of the Financed Facilities <br />so that more than 5% or 10 %, as applicable, of the Proceeds of the Obligations are <br />considered used for a Private Business Use and (ii) receives rent under that lease that, <br />when added to any other Private Security or Payments, exceeds 5% or 10 %, as <br />applicable, of the Proceeds. <br />b. Service Contract. A Deliberate Action generally occurs if (i) (1) the City <br />enters into a "service contract" (defined below) with a Private Person, (2) that Service <br />Contract will be performed (or will be deemed to be performed) within the project, (3) <br />that Service Contract does not satisfy the requirements set forth in Revenue Procedure <br />97 -13 (o• its successor), and (4) that use, when added to any other Private Business Use <br />of the project, exceeds 5% or 10 %, as applicable, of the Proceeds, and (ii) payments <br />received or deemed received with respect to the project in which the Service Contract is <br />performed, when added to any other Private Security or Payments, exceed 5% or 10 %, as <br />applicable, of the Proceeds. A Service Contract is an arrangement under which services <br />are to be provided by a Private Person involving the use of all or any portion of, or any <br />function of, the Financed Facilities (for example, management services for an entire <br />facility or a specific department of a facility). <br />C. Sale of Project. A Deliberate Action generally occurs if the City sells all or <br />more than 5% or 10 %, as applicable, of the Financed Facilities to a Private Person, which <br />results in Private Business Use, and receives commensurate disposition Proceeds for that <br />sale. <br />d. Loan to a Private Person. A Deliberate Action generally occurs if the City <br />loans more than $5,000,000 of the Proceeds to a Private Person because that loan will <br />cause the Obligations to exceed the "private loan" limit. <br />11 <br />