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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 Section 7.1 of the
Loan Agreement.
The term “default” or “failure” as used in this Article 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 this 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.
Section 7.02 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 Section 6.02(f) hereof. If an Event
of Default occurs of which the Trustee has notice pursuant to this Indenture, the Trustee shall give written
notice thereof, within 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 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 hereunder within the time frame provided to the Borrower hereunder. 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.
Section 7.03 Acceleration. Upon the occurrence of an Event of Default described in
Section 7.01(a) and (b) hereof, 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 Section 7.01(a) and (b) hereof, 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.
The provisions of the preceding paragraph are subject, however, to the condition that if, at any time
after declaration of acceleration and prior to the entry of a judgment in a court for enforcement hereunder
(after an opportunity for hearing by the Issuer and the Borrower):
(a) all sums payable hereunder (except the principal of and interest on Bonds which have not
reached their stated Maturity Date but which are due and payable solely by reason of that declaration of
acceleration), plus interest to the extent permitted by law on any overdue installments of interest at the rate
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