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i. .. (Rev. 6/93) INSTRUCTIONS for DECLARATION OF OFFICIAL IN'TENT For Reimbursement From Tax-Exempt Bonds/Notes PURPOSE The form to which these insuuctions percain is intended for use under Treasury Regulazions § 1.150-2 (the Regulations) in order that an ezpenditure chat is paid wi[h moneys temporarily advanced from ocher funds and is reasonably ezpected to be reimbursed from proceeds of subsequendy issued noces or bonds may qualify for such reimbursement. Failure to comply caa result in serious consequences. With certain eaceptions for qualified 'preliminary expenditures" and certain de minimis ezpenditures, a Dectaration of Official Intent must be made not later than 60 days after paymenc of tEe capical ezpenditure expected to be reimbursed from proceeds of obligations. The "reasonable expectation" test will be failed if the Issuer merely syscematically makes the declaration for all ezpenditures or m eaaggerated amounts regardless of real ezpectations. In general "capital ezpendirums" include (subject to anv more resuictive state law) any costs reiated to the acquisition or construction of land or interesu in real estau, buildings, strucnues, additions thereto, or other permanent improvements, and restoration or betterments made co increase the value of properry or substantially prolong its useful life, and also of machinery, equipment, furaiture and fixtures 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 purpose. 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 eapenditures paid on or after the date of issuance of the obligations, and this form generally does noc apply to obligations for the refinancing of external 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 Resister on June 18, 1993. The insuuctions refer to tho particular lines on che form of Deelaration o ici tenc. Line 1. Insert the expected maaimum principal amount of obligations expected to be issued for the project wi respect 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 ezpendicures and obligations to finance expenditures co be paid on or after the date of issuance of the obligations). A'project?ncludes,any properry, project, or program (e.g., highway capital improvemenc program, hospital equipmenc acquisition, or school buflding renovation). Line 2. The general description of the capital ezpenditures to be reimbursed may be set forth in one of two ways -= eiEher (A) by a functional description of the property, project or program for which the ezpenditure is made -- Ezamples- "highway capital improvement program"; "street and bridge improvements"; "hospital equipment acqiusition"; "school buildings renovation"; or (B) by identification of the fund or account from which the money will be advanced to pay the eapenditures i6ac will be reimbursed subsequencly from horrowed money, and a statement of the general functional purpose of that fund or account -- Example-- " azks and recreation fund, the general funetional purpose of which fund or account is recreational aci icv capi[al improvement proeram". The (B) op[ion, concerning identification and description of the fund can be used where the fund purpose, in effect, describes the generic purpose of the project, property or program, such as a waterworks improvement for which money is advanced from the water utility 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 type of capital improvement, use option (A) by stating [he generic function of the project, properry or impmvemenc. 501(c) Or anizations. If the reimbursemenc obligations will constirute qualified 501(c)(3) bonds, the proceeds ot whic wil e loaned to a 501(c)(3) organization, the 501(c)(3) organizacion, 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 reimbursemen[ bonds, ezcept that in the case of a"loan" of proceeds of the bonds to a 501(c)(3) organization for which the 501(c)(3) organization has elected to make the Declaration, "Issuer" means the 501(c)(3) organizacion.