9951-09 Authorizing the aquisitions, constructions and installation of certain improvements and extensions

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Section 2.05. Effect of Disbursements. Loan disbursements made to or for the benefit of the Participant shall be deemed to be a purchase, first, of the 2009 Bonds for any Loan Disbursements made on the date hereof, second, of the 2009 BAN unless cost related to a disbursement has been designated as not eligible for funding from the 2009 Recovery Grant and, third, of the remainder of the 2009 Bonds in order of their maturities, provided that if the original maximum aggregate amount of the Loan is not disbursed (or not required to be disbursed pursuant to Section 2.06(a) or (b) herein), then the maturities of the Bonds (including as set forth in Exhibit B shall be modified consistent with the Reamortization Methodology. The deposit of Loan proceeds in the Construction Fund shall be deemed to be a purchase of the Bonds. Interest on the Loan commences on disbursement of the Loan to or for the benefit of the Participant (including any amounts disbursed to the Construction Fund) by the Finance Authority and the Bonds shall be deemed to be purchased in the full amount thereof. Each disbursement (including any amounts disbursed from the Construction Fund) shall be made pursuant to a Disbursement Request. In the event any Loan disbursement (including any amounts disbursed from the Construction Fund) shall be made in excess of Eligible Costs, such excess disbursements shall be immediately paid by the Participant to the Disbursement Agent (and if made from any amounts held in the Construction Fund, shall be immediately deposited by the Participant into such Construction Fund) and thereafter may, subject to the terms and conditions set forth in this Agreement, be applied thereafter to pay Eligible Costs of the Project by the Participant. Section 2.06. Acknowledgment of Amount of Loan; Interim Contractual Commitment Requirements; Final Disbursement. (a) Within 30 days after any request by the Finance Authority from time to time, the Participant shall execute and deliver to the Finance Authority an acknowledgment in the form prescribed by the Finance Authority which acknowledges the outstanding principal of and interest on the Bonds. Unless the Finance Authority consents in writing, no Loan disbursement shall be made more than one year after Substantial Completion of Construction. After Substantial Completion of Construction, upon the request of the Finance Authority, the Participant shall replace, at its expense, the Bonds with substitutes issued pursuant to the Authorizing Instrument to evidence the outstanding principal under the Loan. (b) In the event that (i) Construction has not commenced by December 1, 2009 or (ii) the Participant has not entered into contracts related to Eligible Costs as of December 1, 2009 which obligate the Participant to make payments that aggregate an amount at least equal to the maximum Loan amount hereunder ("Contractual Commitments"), then the Loan balance available pursuant to this Agreement shall be reduced as of December 1, 2009 to an aggregate amount equal to Contractual Commitments as of December 1, 2009 (the "Reduced Loan Amount"). The Participant agrees to certify to the Finance Authority by no later than December 5, 2009 (i) the aggregate amount of the Contractual Commitments by December 1, 2009, (ii) that true and accurate copies of the contracts constituting such Contractual Commitments have been provided to the Finance Authority, (iii) whether Construction has commenced by December 1, 2009 and (iv) such additional information as required by SRF Policy Guidelines. The Finance Authority may in its discretion determine one or more later dates to apply to the foregoing provisions ofthis Section 2.06(b) provided that such actions by such dates permits compliance B-12 BDDBO l 5738468v1