R2005-86 AUTHORIZING LIMITED GUARANTY

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defined in the Development Agreement); or (iii) Lender has received all of the work product resulting from the Phase II Infrastructure Predevelopment Loan and the Phase III Infrastructure Predevelopment Loan. This Guaranty shall only be of the outstanding balance of the Phase II Infrastructure Predevelopment Loan, the Phase III Infrastructure Predevelopment Loan and the Tap Costs. Furthermore, Guazantor only guarantees such funds as aze advanced for Phase III Infiastructure Loan for which it has given its approval. Upon any payment made by Guarantor hereunder for the Phase II Infrastructure Predevelopment Loan, Guarantor shall receive all of the work product resulting from such Phase II Infrastructure Predevelopment Loan. Upon any payment made by Guarantor hereunder for the Phase III Infrastructure Predevelopment Loan, Guarantor shall receive all of the work product resulting from such Phase III Infrastructure Predevelopment Loan. Guarantor agrees to provide all work products created with funds from the Phase II Infrastructure Predevelopment Loan and Phase III Infrastructure Predevelopment Loan to the Lender in the event Guazantor is in default under the Loan Guaranty for non- payment. 3. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given when personally delivered to the other party or on the date deposited in the United States Postal Service, Postage Prepaid, Registered or Certified Mail, Return Receipt Requested, or with a courier or delivery service, addressed to the other party as follows: To Lender: Decatur Housing Authority 401 Longview Place Decatur, IL 62521 Attention: Director of Capital Programs To Guarantor: City of Decatur 1 Gary K. Anderson Plaza Decatur, IL 62523 Attention: City Manager Guazantor requires notice of Developer's nonpayment, nonperformance or nonobservance of the covenants,terms, and conditions of the Loan Agreement. 4. This instrument shall be construed in accordance with the laws of the State of Illinois. 5. This Limited Guaranty is a limited recourse guaranty. All payments to be made by the Guazantor in respect of this Limited Guaranty shall be made only from funds as follows: (i) Funding received by Guarantor, to the extent such funds remain available, from the Section 108 CDBG Loan Guarantee Program for the Near North project; and (ii) Proceeds received by Guarantor, to the extent such proceeds are dedicated to the Revitalization (as defined in the Development Agreement) and to the extent such proceeds remain available, from the Near North Redevelopment Project Area TIF District. {DOOG4860.DOC/6 Limited Guaranty 198 017901}