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APPENDIX D
SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT
The following summarizes certain provisions of the Loan Agreement, to which reference is made
for the detailed provisions thereof.
The Loan and Loan Payments; Issuance of the Bonds
Under the Loan Agreement, the Issuer agrees to issue the Bonds and to loan the proceeds thereof
to the Borrower to assist in the financing of the Project. The Borrower agrees to repay the Loan by making
Loan Payments at the times required by the Loan Agreement and the Promissory Note delivered to the
Trustee in connection with the Bonds. The Loan Payments will generally equal in the aggregate the amount
of Bond Debt Service Charges on the Bonds. Furthermore, funds on deposit in the Project Fund and the
Collateral Fund are available to pay Bond Debt Service Charges on the Bonds to the extent funds available
in the Bond Fund on any Loan Payment Date are insufficient to make such payments.
Disbursements from the Project Fund
Subject to the provisions below and so long as no Event of Default under the Loan Agreement has
occurred and is continuing for which the Loan Payments and principal amount of the Bonds has been
declared to be immediately due and payable pursuant to the provisions described under the caption
“Remedies on Default” below and in “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF
THE INDENTURE – Acceleration,” respectively, disbursements from the Project Fund shall be made only
to pay any of the following Project Costs:
(a) Costs incurred directly or indirectly for or in connection with the acquisition,
rehabilitation, and equipping of the Project, including costs incurred in respect of the Project for
preliminary planning and studies; architectural, legal, engineering, accounting, consulting,
supervisory and other services; labor, services and materials; and recording of documents and title
work.
(b) Premiums attributable to any surety bonds and insurance required to be taken out
and maintained during the Construction Period with respect to the Project.
(c) Taxes, assessments and other governmental charges in respect of the Project that
may become due and payable during the Construction Period.
(d) Costs incurred directly or indirectly in seeking to enforce any remedy against any
contractor or subcontractor in respect of any actual or claimed default under any contract relating
to the Project.
(e) Any other costs, expenses, fees and charges properly chargeable to the cost of
acquisition, rehabilitation, renovation, construction and equipping of the Project.
(f) Payment of interest on the Bonds during the Construction Period.
(g) Payments to the Rebate Fund.
Any disbursements from the Project Fund shall be made by the Trustee only as permitted pursuant
to the provisions described in “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THEJump to an indexed page (744 of 744)