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INDENTURE – Acceleration,” the Trustee shall declare all Loan Payments to be immediately due
and payable together with any other amounts payable by the Borrower under the Loan Agreement
and the Promissory Note whereupon the same shall become immediately due and payable;
(b) The Trustee may exercise any or all or any combination of the remedies specified
in the Loan Agreement;
(c) The Issuer or the Trustee may have access to, inspect, examine and make copies
of the books, records, accounts and financial data of the Borrower pertaining to the Project; or
(d) The Issuer or the Trustee may pursue all remedies existing at law or in equity as of
or after the date of the Loan Agreement to collect all amounts then due and thereafter to become
due under the Loan Agreement, the Regulatory Agreement and the Promissory Note or to enforce
the performance and observance of any other obligation or agreement of the Borrower under those
instruments.
Notwithstanding the foregoing, neither the Issuer nor the Trustee, as assignee of the Issuer, shall
be obligated to take any step which in its respective opinion will or might cause it to expend time or money
or otherwise incur liability unless and until a satisfactory indemnity bond has been furnished to the Issuer
or the Trustee, as applicable, at no cost or expense to the Issuer or the Trustee. Any amounts collected as
Loan Payments or applicable to Loan Payments and any other amounts which would be applicable to
payment of Bond Debt Service Charges collected pursuant to action taken under this caption shall be paid
into the Bond Fund and applied in accordance with the provisions of the Indenture or, if the Outstanding
Bonds have been paid and discharged in accordance with the provisions of the Indenture, shall be paid as
provided in “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE –
Repayment to the Borrower from the Bond Fund” for transfers of remaining amounts in the Bond Fund.
The provisions described under this caption are subject to the further limitation that the rescission
by the Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute
an annulment of any corresponding declaration made pursuant to clause (a) under this caption and a waiver
and rescission of the consequences of that declaration and of the Event of Default with respect to which
that declaration has been made, provided that no such waiver or rescission shall extend to or affect any
subsequent or other default or impair any right consequent thereon.
Amendments and Supplements
Except as otherwise expressly provided in the Loan Agreement or the Indenture, subsequent to the
issuance of the Bonds and prior to all conditions provided for in the Indenture for release of the Indenture
having been met, the Loan Agreement, the Regulatory Agreement and the Promissory Note may not be
effectively amended, changed, modified, altered or terminated except in accordance with the provisions of
the Indenture, as applicable. See “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE – Amendments Not Requiring Consent of Holders” and “– Amendments Requiring Consent
of Holders” attached hereto.
HUD Required Provisions
The Borrower and the Issuer have acknowledged that the Loan Agreement and all the Borrower’s
obligations thereunder are subject and subordinate to the FHA Loan Documents and the Program
Obligations. Notwithstanding any provisions of the Loan Agreement to the contrary, no obligations of the
Borrower thereunder shall be payable except from (a) Surplus Cash; (b) funds that are not derived from (1)
revenues of the Project (as defined in the FHA Mortgage), (2) the proceeds of the FHA Note, or (3) any
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