14-20 Cedar Glen Bond Ordinance Addendums

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identified available moneys will be sufficient to pay in full the Project Costs including the change in Project Costs resulting from such revision. Section 3.3. Issuance of the Bonds; Application of Proceeds. To provide funds to make the Loan for purposes of assisting in paying the Project Costs, the Issuer will issue, sell and deliver the Bonds to the Underwriter. The Bonds will be issued pursuant to the Indenture in the aggregate principal amount, will bear interest and will mature as set forth therein. The Borrower hereby approves the terms and conditions of the Indenture and the Bonds, and of the terms and conditions under which the Bonds will be issued, sold and delivered. The proceeds from the sale of the Bonds shall be loaned to the Borrower and paid over to the Trustee for the benefit of the Borrower and the Holders of the Bonds and deposited as follows: (a) a sum equal to any accrued interest and negative arbitrage deposit paid by the Underwriter shall be deposited in the Bond Fund, and (b) the balance of the proceeds shall be deposited in the Project Fund. Pending disbursement pursuant to Section 3.4 hereof, the proceeds so deposited in the Project Fund, together with any investment earnings thereon, shall constitute a part of the Pledged Revenues assigned by the Issuer to the Trustee as security for the payment of Bond Service Charges as provided in the Indenture. Section 3.4. Disbursements from the Project Fund. Subject to the disbursement requirements of HUD and so long as no Event of Default hereunder has occurred and is continuing for which the principal amount of the Bonds has been declared to be immediately due and payable pursuant to Section 7.2 hereof and Section 7.03 of the Indenture, disbursements from the Project Fund shall be made upon the receipt by the Trustee of(i) a written request from the Borrower in substantially the form of the request attached hereto as Exhibit C and (ii) Collateral Funds in the amount of the disbursement request. Upon receipt of the Collateral Funds, the Trustee shall transfer funds as set forth in Section 5.03 of the Indenture. Proceeds of the Bonds disbursed pursuant to the provisions of this Agreement may only be used to pay Project Costs. The Borrower acknowledges that all Collateral Funds requested shall be wired from or at the direction of the Senior Lender to the Trustee and disbursed and invested and applied by the Trustee in accordance with the provisions of Section 5.03 of the Indenture; provided, however, that if an Event of Default occurs that results in an acceleration of the Bonds, any Collateral Funds to be provided after the Bonds have been paid in full shall be wired directly to the Borrower. Any disbursement for any item that is not described in, or the cost for which item is other than as described in, the information statement filed by the Issuer in connection with the issuance of the Bonds as required by Section 149(e) of the Code and in the Notice of Public Hearing pertaining to the Bonds, shall be accompanied by an Opinion of Bond Counsel to the effect that such disbursement will not cause the interest on the Bonds to be included in the gross income of the Holders for federal income tax purposes. Any moneys in the Project Fund remaining after the Completion Date and payment, or provision for payment, in full of the Project Costs, promptly shall be paid into the Bond Fund for 8