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Any money in the Project Fund remaining after the Completion Date and payment, or provision for
payment, in full of the Project Costs, at the direction of the Authorized Borrower Representative, promptly
shall be paid into the Bond Fund for payment of Bond Debt Service Charges.
All payments made from the Project Fund shall be presumed by the Trustee to be made for the
purposes certified in said written requests, and the Trustee shall not be required to see to the application of
any payments made from the Project Fund or to inquire into the purposes for which withdrawals are being
made from the Project Fund. The Trustee shall not be bound to make an investigation into the facts or
matters stated in any written request. The Trustee shall not be responsible for determining whether the
funds on hand in the Project Fund are sufficient to complete the Project. The Trustee shall have no
responsibility whatsoever to disburse or transfer funds absent written instructions from the Borrower.
Section 3.5 FHA Lender Funds and the Bridge Loan.
(a) The Borrower hereby acknowledges that the FHA Lender has determined to fund the FHA
Insured Mortgage Loan, on the condition that the FHA Lender originate and service the FHA Insured
Mortgage Loan in accordance with the FHA Loan Documents, the FHA Insurance Regulations and the
GNMA Regulations, and the FHA Lender has further agreed pursuant to the related FHA Loan Documents
issue the GNMA Securities in accordance with the GNMA Regulations, based on and backed by the FHA
Insured Mortgage Loan.
(b) The Borrower hereby acknowledges that the Bridge Lender has determined to fund the
Bridge Loan, on the condition that the Bridge Lender originate and service the Bridge Loan in accordance
with the Bridge Loan Documents
(c) The Borrower will direct the Bridge Lender to deliver or cause to be delivered to the
Trustee proceeds of the Bridge Loan upon the Bridge Lender鈥檚 receipt and approval of a requisition from
the Borrower requesting an advance under the Bridge Loan Documents for payments of Project Costs up
to an amount equal to the proceeds of the Bonds to be disbursed from the Project Fund.
(d) The Borrower will direct the FHA Lender to deliver or cause to be delivered to the Trustee
the FHA Lender Funds upon the FHA Lender鈥檚 receipt and approval of a requisition from the Borrower
requesting an advance under the FHA Insured Mortgage Loan for payments of Project Costs up to an
amount equal to the proceeds of the Bonds to be disbursed from the Project Fund.
(e) The Borrower agrees to pay to the FHA Lender all amounts when due under the FHA Note
and to abide by the provisions of the FHA Loan Documents and the GNMA Documents.
(f) The Borrower agrees to pay to the Bridge Lender all amounts when due under the Bridge
Loan Documents and to abide by the provisions of the Bridge Loan Documents.
(g) Pursuant to the Disbursing Agreement, the Trustee shall, upon receipt from the FHA
Lender of (i) the FHA Lender Funds and (ii) an approved requisition, disburse amounts from the Project
Fund, in the exact same amount of the FHA Lender Funds received by the Trustee from the FHA Lender,
to the Borrower, or to the Title Company by or at the direction of the FHA Lender for application to the
payment of the Project Costs set forth in the approved requisition.
(h) The Borrower acknowledges that, to the extent that an advance of FHA Lender Funds as
requested by the Borrower is approved by FHA Lender, the Borrower has directed the FHA Lender that all
funds be wired by the FHA Lender directly to the Trustee and that such funds shall be disbursed and
invested and applied by the Trustee in accordance with the provisions of Section 5.03 of the Indenture.
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