14-20 Cedar Glen Bond Ordinance Addendums

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Fund, taking into account the scheduled investment income on any fixed-yield Eligible Investments, will be sufficient to pay Bond Service Charges on the outstanding Bonds as and when they become due. In the event Trustee determines that it cannot disburse Bond proceeds to or at the direction of the Borrower or the Senior Lender, Trustee shall immediately notify Borrower and Senior Lender of the reason for such determination and shall, immediately upon the request of Borrower or Senior Lender, return the Collateral Funds to the party that deposited that installment of Collateral Funds with the Trustee. The Trustee may rely upon a calculation from the Underwriter, substantially in the form of a Cash Flow Projection, in making the above determination. 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 partners 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 partners 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 this Indenture. Upon the occurrence and continuance of an Event of Default hereunder because of which the principal amount of the Bonds has been declared to be due and immediately payable pursuant to Section 7.03 hereof, any moneys remaining in the Project Fund shall be promptly transferred by the Trustee to the Bond Fund for payment of Bond Service Charges. Section 5.04. Completion of the Project. The completion of the Project and payment of all costs and expenses incident thereto shall be evidenced by the filing with the Trustee of the Completion Certificate required by Section 3.6 of the Agreement. As soon as practicable after the filing with the Trustee of the Completion Certificate, any balance remaining in the Project Fund shall be promptly paid into the Bond Fund for payment of Bond Service Charges. Section 5.05. Bond Fund. Amounts on deposit in the Bond Fund (and accounts therein for which provision is made in this Indenture or in the Agreement) shall be used solely and exclusively for the payment of Bond Service Charges as they become due at stated maturity, or upon prior redemption or acceleration, all as provided herein and in the Agreement. The Trustee shall transmit to any Paying Agents, as appropriate, from moneys in the Bond Fund, amounts sufficient to make timely payments of Bond Service Charges on the Bonds to be made by those Paying Agents and then due and payable. The Issuer authorizes and directs the Trustee to cause withdrawal of moneys from the Bond Fund which are available for the -32 -