Item 2D: EWEB Long-Term Borrowing

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Electric Utility System Revenue Bonds, Series 2002B, issued under City Council Resolution No. 4719. E. On the date hereof, the City Council authorized an Electric Utility System Line of Credit Agreement in the amount not to exceed $46,355,000 (the “Harvest Wind Project Interim Financing”) for the purpose of providing interim financing for the acquisition of an interest in and construction of new capital facilities in the State of Washington, to be known as the Harvest Wind Project (the “Project”); F. On June 16, 1986, EWEB adopted a resolution authorizing and providing for the issuance, from time to time, of City of Eugene, Oregon Electric Utility System Revenue Bonds to be equally and ratably secured by the pledge of revenues, funds and accounts thereunder (as amended and supplemented, the “Bond Resolution”). G. The Bond Resolution provides in part that the principal of, premium, if any, and interest on the bonds issued thereunder shall not be payable from any funds of the City nor constitute a general obligation of the City or create a charge upon the tax revenues or any other property or revenues of the City. H. The Bond Resolution does not prohibit, and EWEB has by resolution undertaken to authorize and provide for, the issuance, from time to time, of bonds, notes, certificates, warrants or other evidences of indebtedness for any corporate use or purpose relating to the Electric Utility System payable as to principal and interest from the Revenues subject and subordinate to the deposits and credits required to be made to the Bond Resolution, or from securing such bonds, notes, certificates, warrants or other evidences of indebtedness and the payment thereof by a lien and pledge on the Revenues junior and inferior to the lien and pledge on the Revenues in the Bond Resolution created for the payment and security of the bonds issued under the Bond Resolution. I. EWEB has by resolution undertaken to provide that the principal of, premium, if any, and interest on such subordinate lien obligations shall not be payable from any funds of the City nor constitute a general obligation of the City or create a charge upon the tax revenues or any other property or revenues of the City. J. Oregon Revised Statutes 287A.180(1)(c) and 287A.360 authorize a public body to issue current refunding bonds to refund outstanding revenue bonds. K. EWEB has by resolution undertaken to cause to be prepared a plan showing that EWEB’s estimated Electric Utility System revenues are sufficient to pay the estimated debt service on the Refunding Bonds authorized by this Resolution. L. To the extent that the expenditures and the use of proceeds of the Refunding Bonds may qualify under federal tax law and regulations, the City, including EWEB, intends for the interest on such bonds to be excludable from gross income for federal income tax purposes under §103 of the Internal Revenue Code of 1986, as amended (the “Code”). 2