Regarding Issurance of economic development revenue refunding bonds Regency Place Project

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SENT BY;KUTAKROCH ;11- 4-92 ; 2130PM ; 2022230491-► 12192371125;#40 after solicitation for tenders or otherwise) as the Trustee in its discretion may determine and as - . • shall not exceed the principal amount of Bonds subject to scheduled mandatory redemption on - the next Payment Date. All Bonds so purchased by the Trustee shall be cancelled as provided in Section 305. Not less than 30 nor more than 45 days before the date of each scheduled mandatory redemption, the Trustee shall call for redemption Bonds in an aggregate principal • amount equal to such scheduled mandatory redemption, reduced by the principal amount of Bonds purchased pursuant to the foregoing provisions of this paragraph, and on the date such scheduled mandatory redemption is due the Trustee shall apply the money set aside therefor in the Bond Fund to the payment of the redemption price of the Bonds so called for redemption.] . (d) Unless the Mortgage Note and Mortgage have been assigned to FHA pursuant to Section 606 hereof, all income from the investment of moneys in the Bond Fund shall be retained in the Bond Fund. (e) In accordance with Section 407 hereof, if the amount in the Bond Fund is insufficient to pay principal of or interest on the Bonds when dtie, the Trustee shall-transfer from the Bond Fund to the Debt Service Reserve Fund the amount of such deficiency. Section 4.07. Debt Service Reserve Fund. On the Closing Date, the Issuer shall deposit with the Trustee an amount equal to $400,000 which the Trustee shall deposit into the Debt Service Reserve Fund. Amounts shall be maintained within the Debt Service Reserve Fund at all times equal to or. not less than the Debt Service Reserve Fund Requirement, subject to the provisions of Section 406. The Trustee shall transfer amounts in the Debt Service Reserve Fund to the Bond Fund to pay the principal of and interest on the Bonds only after written notice of default under the Mortgage Note has been given to HUD pursuant to Section 606(b) hereof. In connection with any proposed partial redemption of Bonds (other than a redemption pursuant to Section 301(b)), the Trustee shall compute the reduction in the Debt Service Reserve Fund Requirement which will result from such redemption and transfer any amount on deposit in the Debt Service Reserve Fund which will exceed the Debt Service. Reserve Fund • Requirement following such redemption to the Bond Fund to be used in connection with such redemption; provided, however, that if the Loan is in default, such redemption pursuant to Section 301(d) will not occur until full FHA Mortgage insurance proceeds have been received. The Trustee shall deposit all investment earnings received from the investment of the Debt Service Reserve Fund in the Bond Fund. Section 408. Investment of Moneys in Funds. All moneys in any of the funds and accounts established under this Indenture shall be invested by the Trustee in Investments • pursuant to written direction of the Developer. If no written direction of the Developer is received in a timely manner, such moneys shall be invested in Investment Securities described in Clause 5 of the definition thereof.. All Investment Securities shall be acquired subject to the 3152.1 26 •