14-20 Cedar Glen Bond Ordinance Addendums

Home Browse Search

The Trustee shall cause to be kept and maintained adequate records pertaining to the Project Fund and the Assignment Fund and all disbursements therefrom. If requested by the Issuer or the Borrower, after the Project has been completed and a certificate of payment of all costs is filed in accordance with the Indenture the Trustee shall file copies of the records pertainingto the Project Fund and disbursements P J therefrom with the Issuer and the Borrower. When the aggregate principal amount on deposit in the Assignment Fund, together with the scheduled investment earnings thereon, equals the expected Bond Service Charges to be paid on the Bonds to and including the Maturity Date, the excess amounts shall be transferred upon receipt to the Residual Fund and used to pay Project Costs in accordance with the Loan Agreement. Notwithstanding any provision of the Loan Agreement or any other provision of the Indenture to the contrary, the Trustee is not to disburse money from the Project Fund other than to pay Bond Service Charges unless and until the Trustee receives satisfactory evidence that Collateral Funds or other Available Money (or any combination of the foregoing) in an amount equal to or greater than the requested disbursement amount has been deposited in the Assignment Fund. Prior to making any disbursement, the Trustee is to verify that, upon making the disbursement, the aggregate amount held in the Assignment Fund, the Bond Fund and the Project Fund, together with projected investment earnings thereon,will be sufficient to pay Bond Services Charges as and when they become due. The proceeds of the Bonds shall be used exclusively to pay costs that (i) are (A) capital expenditures (as defined in Section 1.150-1(a) of the Code's regulations) and (B) not made for the acquisition of existing property, to the extent prohibited in Section 147(d) of the Code, and (ii) are made exclusively with respect to a"qualified residential rental project"within the meaning of Section 142(d) of the Code and that for the greatest number of buildings the proceeds of the Bonds shall be deemed allocated on a pro rata basis to each building in the Project and the land on which it is located so that each building and the land on which it is located will have been financed fifty percent (50%) or more by the proceeds of the Bonds for the purpose of complying with Section 42(h)(4)(B) of the Code; provided, however,the foregoing representation, covenant and warranty is made for the benefit of the Borrower and its members and neither the Trustee nor the Issuer shall have any obligation to enforce this covenant nor shall they incur any liability to any person, including without limitation, the Borrower, the members of the Borrower, any other affiliate of the Borrower or the holders of the Bonds for any failure to meet the intent expressed in the foregoing representation, covenant and warranty; and provided further, failure to comply with this representation, covenant and warranty shall not constitute a default or Event of Default under the Indenture. Upon the occurrence and continuance of an Event of Default under the Indenture because of which the principal amount of the Bonds has been declared to be due and immediately payable pursuant to the Indenture, any moneys remaining in the Project Fund shall be promptly transferred by the Trustee to the Bond Fund for payment of Bond Service Charges. Bond Fund As provided in the Loan Agreement, and as evidenced by the Note, Bond Service Charges are to be paid, as they become due, (i) in the first instance from the money on deposit in the Interest Payment Account and Principal Payment Account of the Bond Fund, (ii) next from amounts on deposit in the Assignment Fund and transferred as necessary to the Bond Fund, and (iii) thereafter, from amounts on deposit in the Project Fund and transferred as necessary to the Bond Fund. - 14-