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certified mail, to the Issuer and the Borrower specifying the failure and requiring that it be
remedied, which notice may be given by the Trustee and shall be given by the Trustee at the written
request of the Holders of not less than 25% in aggregate principal amount of the Bonds then
Outstanding; provided, that if the failure is other than the payment of money and is of such nature
that it can be corrected but not within the applicable period, that failure shall not constitute an Event
of Default so long as the Issuer or the Borrower institutes curative action within the applicable
period and diligently pursues that action to completion, which must be resolved within 180 days
after the aforementioned notice and provides the Trustee certification to that effect; and
(d) The occurrence and continuance of an Event of Default as defined in “APPENDIX
D – SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT – Events of
Default” attached hereto.
The term “default” or “failure” as used in the Indenture means (1) a default or failure by the Issuer
in the observance or performance of any of the covenants, agreements or obligations on its part to be
observed or performed contained in the Indenture or in the Bonds, or (2) a default or failure by the Borrower
under the Loan Agreement, exclusive of any period of grace or notice required to constitute an Event of
Default, as provided above or in the Loan Agreement.
Notice of Default
If an Event of Default shall occur, the Trustee shall give written notice of the Event of Default, by
registered or certified mail, to the Issuer, the Borrower, the Investor Limited Partners, the Registrar or the
Paying Agent, and the Authenticating Agent, within five (5) days after the Trustee has actual notice of the
Event of Default pursuant to the Indenture. If an Event of Default occurs of which the Trustee has notice
pursuant to the Indenture, the Trustee shall give written notice thereof, within thirty (30) days after the
Trustee’s receipt of notice of its occurrence, to the Holders of all Bonds then Outstanding as shown by the
Register at the close of business fifteen (15) days prior to the mailing of that notice.
The Federal Investor Limited Partner and the State Investor Limited Partner shall be entitled to cure
any Event of Default under the Indenture within the time frame provided to the Borrower thereunder. The
Issuer and the Trustee agree that cure of any default or Event of Default made or tendered by either the
Federal Investor Limited Partner or the State Investor Limited Partner shall be deemed to be a cure by the
Borrower and shall be accepted or rejected on the same basis as if made or tendered by the Borrower.
Acceleration
Upon the occurrence of an Event of Default described in clauses (a) and (b) under the caption
“Defaults; Events of Default” above, the Trustee may declare, and upon the written request of the Holders
of not less than 25% in aggregate principal amount of Bonds then Outstanding the Trustee shall declare, by
a notice in writing delivered to the Issuer and the Borrower, the principal of all Bonds then Outstanding (if
not then due and payable), and the interest accrued thereon, to be due and payable immediately. Upon the
occurrence of any Event of Default other than those described in clauses (a) and (b) under the caption
“Defaults; Events of Default” above, the Trustee, with the written consent of all Holders of Bonds then
Outstanding, may declare by a notice in writing delivered to the Issuer and Borrower, the principal of all
Bonds then Outstanding (if not then due and payable), and the interest accrued thereon, to be due and
payable immediately. Upon such declaration, the principal of and interest on the Bonds shall become and
be due and payable immediately. Interest on the Bonds shall accrue to the date determined by the Trustee
for the tender of payment to the Holders pursuant to that declaration; provided, that interest on any unpaid
principal of Bonds Outstanding shall continue to accrue from the date determined by the Trustee for the
tender of payment to the Holders of those Bonds.
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