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for Project Costs incurred prior to the Closing Date of the Bonds in accordance with Section 1.150-
2 of the Code.
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.
FHA Lender Funds and the Bridge Loan
The Borrower has acknowledged 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 will, 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.
The Borrower will acknowledge 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.
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.
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.
The Borrower will 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.
The Borrower will 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.
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.
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