Cook County Sales Tax Revenue Bonds

Sales Tax Revenue Bonds Security and Structure COOK JANUARY 183 K CO COUNTY! S.ILL Flow of Funds All Pledged Sales Tax Revenues will be deposited as received by the County (but in no event more than three Business Days after receipt thereof) into the Pledged Sales Tax Revenue Fund established under the Indenture and held by the Trustee, unless otherwise directed by the Indenture • The State can only offset or reduce remittances to the County in the event of incorrect prior payments or passage of State legislation withholding funds о Section 20-10 of Public Act 100-0587, enacted with the State budget on June 4, 2018, directs the retainage by the State of 1.5% of the Pledged Sales Tax Revenues that would have otherwise been disbursed to the County as an administrative fee о On or before the 20th day of each month or upon receipt of the Pledged Sales Tax Revenues, the Trustee will make monthly Sales Tax deposits of 1/5 of interest and 1/10 of principal to the Debt Service Fund on behalf of the County • Debt service reserve fund utilization to be evaluated on a series-by-series basis О No debt service reserve fund will be used for the Series 2022 Bonds Additional Bonds Test • The County may issue additional bonds on parity with the County's outstanding Sales Tax Revenue Bonds • The ABT requires Adjusted Pledged Sales Tax Revenues for any consecutive 12 months during the 18-month period preceding bond issuance, shall not be less than 2.5x of MADS requirements on all bonds then outstanding and proposed to be issued Covenants Home Rule taxing powers provide the County with flexibility to adjust its Sales Tax rate • Covenant by the County not to take any action to cause pledged revenues to produce less than 1.35x annual coverage 9

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