Regarding Issurance of economic development revenue refunding bonds Regency Place Project

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x a z C.F.R. Section 207.258(b)(5)(i), pay to FHA any amounts then remaining [on deposit in the Equity Account and the Mortgage Account of the Construction Fund]. Section 607. Application of FHA Mortgage Insurance Benefits. (a)Moneys in the Bond Fund and Debt Service Reserve Fund shall (except as provided in Section 606(F) hereof) be deemed held for the benefit of the holders of the Bonds, and shall not be subject to such rights of FHA. (b) Upon receipt of the final payment of mortgage insurance proceeds from FHA, the Trustee shall calculate the "Funds Available for Extraordinary Mandatory Redemption," being the sum of: (i) all mortgage insurance proceeds paid in cash, including accrued interest on FHA debentures to their date of delivery ("Cash Proceeds"); (ii) all uninvested moneys held in all funds and accounts established under this Indenture; and (iii)the amount which could be realized from the sale of all investments (not including FHA debentures) deposited to the credit of all funds and accounts established under this Trust Indenture ("Investments on Hand"). In the event that all mortgage insurance proceeds are paid by FHA in cash and the Funds Available for Extraordinary Mandatory Redemption are sufficient to redeem all Bonds Outstanding pursuant to extraordinary Mandatory Redemption on the first practicable date such redemption can be made in accordance with Article III hereof, the Trustee shall sell all Investments on Hand and deposit the proceeds of sale, together with all Cash Proceeds and Cash on Hand in the Redemption Fund and apply such amounts to the Extraordinary Mandatory Redemption of Bonds. In the event that mortgage insurance benefits are paid by FHA in part in FHA debentures and in part in cash, and the Funds Available for Extraordinary Mandatory Redemption (if applied on the first practicable date to Extraordinary Mandatory Redemption of Bonds) and the income and principal on the FHA debentures (if applied to Sinking Fund Redemption pursuant to Section [ ] hereof) would be sufficient to pay when due the interest on, and to pay at or prior to maturity the principal.of, all Bonds Outstanding, then the Trustee shall sell all Investments on Hand and deposit the proceeds of sale, together with all Cash Proceeds and Cash on Hand in the Redemption Fund and apply such amounts to the Extraordinary Mandatory Redemption of Bonds; and the Trustee shall deposit the FHA debentures to the credit of the Debt Service Account and apply the interest income thereon and the principal thereof to Sinking Fund Redemption of Bonds pursuant to Section [ ] hereof. (c) In the event that the mortgage insurance proceeds (whether received in the form of cash, FHA debentures or both) together with Cash on Hand and the proceeds which could be realized from the sale of Investments on Hand are not sufficient to pay the principal or Redemption Price of and interest on all Bonds Outstanding in the manner described in paragraph (B) above, and if the Trustee could make up such deficiency by investing an amount not exceeding [$651,750] (the "Minor Portion," consisting of Cash Proceeds, Cash on Hand, Investments on Hand, or any combination thereof) and applying the Minor Portion and the investment income therefrom (without reinvestment) to the Sinking Fund Redemption of the Bonds for which the application of funds pursuant to paragraph (B) above is insufficient, then 2975.1 40