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(m) The Borrower shall use its best efforts to cause there to be deposited from time to time in
the Collateral Fund Available Money in such amount and at such times as may be necessary to allow the
Trustee to disburse funds from the Project Fund pursuant to Section 5.03 of the Indenture upon the Trustee’s
receipt of a Disbursement Request from the Borrower to pay Project Costs.
(n) In the event the proceeds of the Bonds are not sufficient to complete the rehabilitation,
renovation, equipping and improvements of the Project and the payment of all costs of issuance of the
Bonds, the Borrower will furnish any additional money from any source determined by the Borrower as
necessary to complete the acquisition, rehabilitation, and equipping of the Project and pay all costs of
issuance of the Bonds.
(o) None of the Bond proceeds has been or will be used to purchase the property upon which
the real estate and buildings are located, therefore less than 25% of the proceeds of the Bonds will be used
to pay or reimburse the Borrower for the cost of land or any interest therein.
(p) The rehabilitation expenditures, within the meaning of Section 147(d) of the Code, with
respect to the Project equal or exceed 15% of the portion of the cost of renovating and rehabilitating the
Project financed with proceeds of the Bonds.
(q) The Borrower has not knowingly taken or permitted to be taken and will not knowingly
take or permit to be taken any action which would have the effect, directly or indirectly, of causing interest
on any of the Bonds to be included in the gross income of the owners thereof for purposes of federal income
taxation.
(r) The Borrower shall not take, or knowingly permit or suffer to be taken by the Trustee or
any party acting on its behalf, any action with respect to the proceeds of the Bonds which if such action had
been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date
of issuance of the Bonds would have caused the Bonds to be “arbitrage bonds” within the meaning of
Section 148(a) of the Code.
The Borrower acknowledges that the representations and covenants herein made by the Borrower
have been expressly and specifically relied upon by the Issuer in determining to make the Loan to the
Borrower and the Loan would not have been made but for such representations and covenants.
ARTICLE III
COMPLETION OF THE PROJECT; ISSUANCE OF THE BONDS
Section 3.1 Rehabilitation, Renovation, Improvements, Construction and Equipping the
Project. The Borrower (a) has acquired the Project site and shall rehabilitate and equip the Project with all
reasonable dispatch and in substantial accordance with the Plans and Specifications; (b) shall pay when due
all fees, costs and expenses incurred in connection with that acquisition, rehabilitation, and equipping from
funds made available therefor in accordance with this Loan Agreement or otherwise, except to the extent
being contested in good faith; (c) shall ask, demand, sue for, levy, recover and receive all those sums of
money, debts and other demands whatsoever which may be due, owing and payable under the terms of any
contract, order, receipt, writing and instruction in connection with the acquisition, rehabilitation, and
equipping of the Project; and (d) shall enforce the provisions of any contract, agreement, obligation, bond
or other performance security with respect thereto. It is understood that the Project is that of the Borrower
and any contracts made by the Borrower with respect thereto, whether acquisition contracts, construction
contracts or otherwise, or any work to be done by the Borrower on the Project are made or done by the
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