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Each combined installment of principal and interest, when paid, shall be first applied
<br />to the payment of interest accrued to and including the date fixed for payment on the unpaid
<br />principal amount of the Taxable Note, and the balance thereof to payment on account of the
<br />principal of the Taxable Note.
<br />Section 1.3. Security for the Bonds and Taxable Note. The Bonds and Taxable Note
<br />will be secured by (i) the Indenture, constituting an assignment to the Trustee of the Issuer's
<br />interest in and to the Loan Agreement and a pledge to the Trustee of the Note (the "Note")
<br />of the Borrower in the principal amount of $8,030,384.77 issued to the Issuer pursuant to
<br />the Loan Agreement, (ii) a Mortgage, Assignment of Rents and Security Agreement (the
<br />"Mortgage"), substantially in the form attached hereto as Exhibit G, to be dated as of
<br />November 15, 1993, from the Borrower to the Trustee, constituting a lien on and security
<br />interest in the Borrower's interest in the Project, (iii) an Assignment of Lease (the
<br />"Assignment of Lease "), substantially in the form attached hereto as Exhibit H, from the
<br />Borrower to the Trustee, constituting an assignment of that certain Operating Lease (the
<br />"FBT Lease"), dated as of April 15, 1981, between the Borrower, as lessor, and FBT, as
<br />lessee, and (iv) an Assignment of Rents and Leases (the "Assignment of Rents "),
<br />substantially in the form attached hereto as Exhibit I, to be dated as of November 15, 1993,
<br />from FBT to the Trustee constituting an assignment of all leases wherein FBT is lessor.
<br />Section 1.4. Purchase of the Bonds and the Taxable Note. Subject to the terms and
<br />conditions set forth in Section 2 hereof, and on the basis of the representations and
<br />warranties hereinafter set forth or provided for, (a) the Issuer hereby agrees to issue, sell
<br />and deliver to you, and you agree to purchase from the Issuer, the Bonds, in the principal
<br />amount of [$8,018,300] and (b) the Borrower hereby agrees to issue, sell and deliver to
<br />you, and you agree to purchase from the Borrower, the Taxable Note, in the original
<br />principal amount of $[2,235,000]. Delivery of the Bonds and the Taxable Note will be made
<br />at 10:00 A.M. on such date (the "Closing Date "), not later than November 30, 1993, as the
<br />Borrower shall designate to you, the Trustee and the Issuer by not less than five business
<br />days' prior notice. Delivery of the Bonds and the Taxable Note shall be made at the offices
<br />of Chapman and Cutler, 111 West Monroe Street, Chicago, Illinois, against payment
<br />therefor in funds immediately available in Indianapolis, Indiana, payable to the Trustee. The
<br />Bonds to be purchased by you on the Closing Date will be in the form of one Bond, in fully
<br />registered form, payable to you or your registered assigns, and in the principal amount set
<br />forth above. The Taxable Note to be purchased by you on the Closing Date will be in the
<br />form of one Taxable Note, in fully registered form, payable to you or your nominee, and in
<br />the principal amount set forth above.
<br />The proceeds from the sale of the Bonds will be deposited by you, on behalf of the
<br />Issuer, in the Bond Proceeds Fund pursuant to Section 601 of the Indenture. Disbursements
<br />from the Bond Proceeds Fund will be made to or upon the order of the Borrower pursuant
<br />to the Escrow Agreement to be dated as of November 15, 1993, among the Prior Trustee,
<br />the Issuer and the Trustee.
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