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SENT BY:KUTAKROCK ;11- 4-92 ; 2:26PM ; 2022230491-0 12192371125;#34 <br /> redemption may be timely given, if the sum of the amount of moneys held in the Bond Fund and <br /> Redemption Fund equals or exceeds the redemption price of Outstanding Bonds plus Qualified <br /> Expenses then due and payable, from any amounts held in such funds. <br /> (c) Casualty and Condemnation Redemption. The Bonds are also subject to <br /> redemption in whole or in part on the earliest practicable date for which proper notice of <br /> redemption can be given at a redemption price of 100% of the principal amount, plus accrued <br /> interest to the date fixed for redemption to the extent the proceeds of any condemnation award <br /> or insurance recovery are applied to the prepayment of the Note (along with a proportionate <br /> reduction of the Debt Service Reserve Fund as described in Section 302). . <br /> (d) Extraordinary Redemption From FHA Mortgage In3urance Benefits in Cash. To <br /> the extent that FHA Mortgage Insurance benefits are paid to the Trustee in cash, the Trustee <br /> shall redeem the Bonds, in whole or in part, on the earliest practicable date for which proper <br /> notice of redemption can be given at a redemption price of 100% of the principal amount, plus <br /> accrued interest to the date fixed for redemption. <br /> . (e) Redemption After Receipt of FHA Mortgage Insurance Benefits in Debentures. <br /> If FHA Mortgage Insurance benefits are paid to the Trustee in FHA debentures and such FHA <br /> debentures can be sold or tendered to HUD at a price sufficient to redeem the Bonds, the <br /> Trustee shall redeem Bonds therefrom on the earliest practicable date for which proper notice <br /> of redemption can be given at a redemption price of 100% of the principal amount, plus accrued <br /> interest to the date fixed for redemption. <br /> (0 Redemption in the Event of Lotion Default or Bankruptcy. The Bonds shall be <br /> called for redemption in whole or in part without notice at a redemption price of 100% of the <br /> principal amount, plus accrued interest to the date of redemption in the event that prepayment <br /> of the Note is required to be made (i) by FHA following a default under the Loan in order to <br /> avoid an FHA Mortgage Insurance claim or (ii) without notice while under the supervision of <br /> a trustee in bankruptcy proceedings (along with a proportionate reduction of the Debt Service <br /> Reserve Fund as described in Section 303). <br /> Section 302. Reduction in Debt Service Reserve F md. If a redemption of Bonds occurs <br /> as a result of a reduction in the principal balance of the Loan (other than pursuant to a <br /> redemption under Section 301(b) hereof), the Trustee shall transfer from the Debt Service <br /> Reserve Fund to the Bond Fund any amount by which the balance maintained following such <br /> redemption in the Debt Service Reserve Fund exceeds the Debt Service Reserve Fund <br /> Requirement; provided, however, that if the Loan is in default, such redemption will not occur <br /> until full FHA Mortgage Insurance proceeds have been received by the Trustee. The Trustee <br /> will then redeem Bonds in an amount equal, as nearly as practicable, to the amount of the funds <br /> transferred to the Bond Fund. <br /> 3152.1 20 <br /> • <br />