Regarding Issurance of economic development revenue refunding bonds Regency Place Project

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of the Trustee's election to assign the Note and Mortgage to FHA, (iii) of the Trustee's intention to file a claim for the FHA mortgage insurance in accordance with FHA regulations, and (iv) of the fact that the Mortgage was given to secure the Bonds; and simultaneously with the giving of such notice to FHA, the Trustee shall give notice of its intent to file such claim to all Bondholders in the same manner prescribed in Article III hereof for notices of redemption; and, unless directed in writing to the contrary by the holders of one hundred percent (100%) in aggregate principal amount of the Bonds Outstanding within 20 days of the date such notice was sent to FHA and the Bondholders, the Trustee shall take all actions necessary to assign the Note and Mortgage to FHA and to recover such claim on the FHA mortgage insurance; provided that in no event shall the assignment of the Note and Mortgage be completed later than the last business day preceding the 30th day following the giving of notice to FHA or such longer period as FHA may prescribe by regulations, unless an extension to such time period is approved by FHA in writing; or (2) enter into an agreement with the Developer approved by FHA, extending the time for curing such default. (d) In the event that FHA shall make payment of a claim for FHA mortgage insurance in cash, whether in whole or in part, the Trustee shall apply such cash proceeds as provided in Section [ ] hereof. (e) In the event that FHA shall make payment of a claim for FHA mortgage insurance in FHA debentures, whether in whole or in part, the Trustee shall apply such debentures as provided in Section [ ] hereof, and give notice to the holders of all Bonds Outstanding in the same manner prescribed in Article III hereof for notices of redemption that the Trustee has received such FHA debentures. Except as provided in Section [ ] hereof, the Trustee shall hold such FHA debentures to their maturity, or until the principal of and interest on all Bonds outstanding have been paid, whichever is the earlier, and shall apply the principal thereof to the payment of the principal of the Bonds Outstanding; provided, however, that at the written request of the holders of one hundred percent (100%) in aggregate principal amount of the Bonds Outstanding, or upon the determination by the Trustee (in the absence of such request) that the proceeds of the sale of the FHA debentures and all other investments of amounts deposited in the funds and accounts established hereunder would produce sufficient funds together with all immediately available funds held by the Trustee hereunder to pay the principal of and interest on all Bonds Outstanding, the Trustee shall sell such debentures and other investments, deposit the proceeds so obtained and such other immediately available funds in the Redemption Fund and apply the same as provided in Section [ ] hereof. (f) In the event the Note and Mortgage are assigned to FHA upon a claim under the FHA mortgage insurance, the Trustee shall, upon receipt of a direction by FHA pursuant to 24 2975.1 39