The Board acknowledges that Section 103(c) (2) of the Code and the

applicable regulations thereunder require that the portion of the Current Bonds

deposited in the Escrow Fund be invested at a yield no greater than the

actuarial yield applicable to the Current Bonds.

           The Board reserves the right to make any investment permitted by

State Law if, whenever, and to the extent that Section 103(c) of the Code or

regulations promulgated thereunder shall be repealed, amended, or relaxed, or

shall be held void by a final decision of a court of competent jurisdiction,

but only if any investment made by virtue of such repeal, relaxation, amend-

ment, or decision would not, in the opinion of recognized Bond Counsel or

Special Tax Counsel, result in making the interest on the Current Bonds subject

to federal income taxation.

           Prior to or at the time of delivery of the Current Bonds, the

Chairman and the Treasurer of the Board are hereby jointly and severally

designated and charged by the Board and University with responsibility for

issuing the Current Bonds and are hereby designated as the officers of the

Board and the University to execute (by any one of them) the certification

required by Section 1.103-13(a)(2)(ii) and any other provisions of the Treasury

Regulations, and such certification shall set forth such facts, expectations,

and circumstances, and shall state that to the best of his knowledge and belief

there are no other facts, expectations, or circumstances that would materially

change such expectation that the proceeds of the Current Bonds will not be used

in a manner that would cause same to be "arbitrage bonds". If, under any valid

provision of law hereafter enacted, the interest paid by the Board on the

Current Bonds should be excludable from the gross income of a recipient thereof

for federal income tax purposes without regard to compliance with the pro-

visions of Section 103(c) of the Code, then the University shall not be

required to comply with such provisions of the Code.

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