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(Rev. 6/93) INSTRUCTIONS for DECLARATION OF OFFICIAL INTENT For Reimbursement From Tax-Exempt Bonds/Notes PURPOSE The form to which these instructions pertain is intended for use under Treasury Regulations § 1.150-2 (the Regulations) in order that an ezpenditure that is paid with moneys temporarily advanced from other funds and is reasonably ezpected to be reimbursed from proceeds of subsequently issued notes or bonds may qualify for such reimbursement. Failure to comply can result in serious consequences. With certain ezceptions for qualified "preliminary ezpenditures" and cenain de minimis expenditures, a Declaration of Official Intent must be made not later than 60 days after payment ofthe capital ezpenditure ezpected to be reimbursed from proceeds of obligations. The "reasonable ezpectation" test will be failed if the Issuer merely sys[ematically makes the declaration for all ezpenditures or m ezaggerated amounts regardless of real ezpectations. In general "capital ezpendirures" include (subject to any more resuictive state law) any costs related to the acquisition or construction of land or interests in real estate, buildings, structures, additions thereto, or ocher permanent improvements, and restoration or betterments made to increase the value of property or substantially prolong its useful life, and also of machinery, equipment, furniture and fiatures having a useful life of at least one year or such longer period as is required by applicable state law. Costs of issuance also are capital expenditures for this puzpose. Certain other ezpenditures also qualify for reimbursement. The Regulations do not apply to and this form is not to be used in conneccion with use of proceeds of obligations to finance expenditures pazd on or after the date of issuance of the obligations, and this form generally does not apply to obligations for the refinancing of eztemal borrowings (tazable or tax-ezempt) such as by issuance of renewal notes or refunding bonds. INSTRUCTIONS These instructions aze based on the Regulations published in The Federal Re¢ister on June 18, 1993. The instructions refer to the particular lines on che form of Declazation o ici tent. Line 1. Insert the expected mazimum principal amount of obligations expected to be issued for the project wit?pect to which the capital expenditures to be reimbursed relate. The amount entered on line 1. should include the maaimum principal amount of all obligations to be issued for the project, (i.e., obligations to be issued for reimbursement of prior ezpenditures and obligations to finance ezpenditures to be paid on or after the date of issuance of the obligations). A"project?ncludes any property, project, or program (e.g., highway capital improvement program, hospital equipment acquisition, or school building renovation). Line 2. The general description of the capital ezpenditures to be reimbursed may be set forth in oae of two ways -= eiLher (A) by a functional description of the properry, project or program for which the ezpenditure is made -- Examples- "highway capital improvement program"; "street and bridge improvemencs"; "hospital equipment acquisition"; "school buildings renovation"; - -- or (B) by identification of the fund or accouat from which the money will be advanced to pay the ezpenditures Tac will be reimbursed subsequently from borrowed money, and a statement of the general functional purpose of that fund or account -- Example-- " azks and recreation fund, the general functional purpose of which fund or account is recreational aciliN capital improvement program". The (B) option, concerning identification and description of the fund can be used where [he fund purpose, in effect, describes the generic purpose of the project, pmperty or program, such as a waterworks improvement for which money is advanced from the water utilitv fund. If the money is to be advanced from a general purpose fund such as the general fund or a capital improvements fund which is available for any rype of capital improvemen[, use option (A) by stating the generic function of the project, progerty or improvement. 501(c Or anizations. If the reimbursement obligations will constitute qualified 501(c)(3) bonds, the proceeds ot whic wi e Loaned to a 501(c)(3) organization, the 501(c)(3) organization, can make the Declaration with respect to its ezpenditures and its name can be inserted on the "Name of Issuer" line, and its officer can sign the Declaration. Accordingly, in these Instructions, "Issuer" means the issuer of the reimbursement bonds, except thaz in the case of a"loan" of proceeds of the bonds to a 501(c)(3) organization for which che 501(c)(3) organization has elected to make the Declaration, "Issuer" means the 501(c)(3) organization.