99-18 AUTHORIZING AN INTERGOVERNMENTAL COOPERATION AGREEMENT

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. � all of the Municipalities for the purpose of financing and purchasing mortgage loans to finance single family residences for low and moderate income persons within the corporate boundaries of the Municipalities (the "Program"); and WHEREAS, to provide for the Program, the Issuers propose to issue, sell and deliver $ aggregate principal amount of Collateralized Single Family Mortgage Revenue Bonds, Series 1999 (the "Bonds") on behalf of all of the Municipalities to obtain funds to finance the acquisition of mortgage-backed securities (the "GNMA Securities") of the Government National Mortgage Association ("GNMA"), evidencing a guarantee by GNMA of timely payment of, mortgage-backed securities (the "FNMA Securities") of the Federal National Mortgage Association ("FNMA"), evidencing a guaranty by FNMA of timely payment of, and mortgage-backed securities (the "FHLMC Securities") of the Federal Home Loan Mortgage Corporation ("FHLMC"), evidencing a guaranty by FHLMC of timely payment of, monthly principal of and interest on certain qualified mortgage loans under the Program (the "Mortgage Loans"), all under and in accordance with the Constitution and laws of the State of Illinois; and WHEREAS, 30 Illinois Compiled Statutes 1996, 345/6 et seq., as supplemented and amended, permits the corporate authorities of any home rule unit of government to reallocate its private activity bond allocation to another home rule unit, and to allocate volume cap which has been allocated to it toward the issuance of the Bonds, subject to certain restrictions, guidelines and procedures, which guidelines and procedures also permit units of government (including without limitation non-home rule units of government) to pool allocations of volume cap received from the Office of Governor of the State of Illinois; NOw, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Municipalities hereby agree, as follows: Section 1. Bonds. The Issuers hereby agree to issue the Bonds on behalf of all of the Municipalities, as provided in the trust indenture pursuant to which the Bonds will be issued, for the purpose of purchasing GNMA Securities, FNMA Securities and FHLMC Securities to finance mortgage loans for single family residences for low and moderate income persons within the corporate boundaries of each Municipality, to pay interest on the Bonds and to pay the costs of issuance of the Bonds. The Bonds shall be issued in such aggregate principal amounts, shall be issued in such series and classes, shall have such stated maturity or maturities, shall bear interest at such rate or rates, payable on such date or dates, shall be subject to redemption prior to maturity, shall be payable at such date or dates and at such place or places, and shall have such other terms, all as shall be agreed upon by the Issuers and approved by ordinance of the respective governing bodies of the Issuers. The proceeds of the Bonds shall be applied to such '�, public purposes and to the payment of the costs of issuance as shall be approved by ordinances of the respective governing bodies of the Issuers. Section 2. Transfer and Allocation of Unified Volume Cap. Each Municipality which is a home rule unit of government, other than the Issuers, hereby transfers to the Issuers any unified volume cap that it reserved to issue private activity bonds, as set forth in Exhibit A attached to and made a part of this Cooperation Agreement. Certain Municipalities which are -4-