Expenditures for a project that can be financed with proceeds of Bonds without obeying the federal income tax rules relating to reimbursements, up to a limit of 20% of the proceeds of the Bonds (which may be issued in multiple Bond Issues) to be issued to finance the project. Preliminary Expenditures include architectural, engineering, surveying, soil testing, Bond issuance and similar costs incurred prior to the commencement of construction, rehabilitation or acquisition of a project. Preliminary Expenditures do not include land acquisition, site preparation or similar costs incident to the commencement of construction.
A covenant that is the opposite of a pledge – a promise not to pledge property, generally money or other intangibles, to any party other than the issuer, a letter of credit provider or other intended beneficiary of the negative pledge.
