98-33 AUTHORIZING AN INTERGOVERNMENTAL COOPERATION AGREEMENT

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Govemment 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; 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 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 Issuer. 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 Issuer. Section 2. Transfer and Allocation of Unified Volume Cap. Each Municipality, other than the Issuers hereb transfers to the Issuers an unified volume ca that it reserved � , Y Y P before May 1, 1998, to issue private activity bonds, as set forth in Exhibit A attached to and made a part of this Cooperation Agreement. The Municipalities hereby allocate the unified volume cap referred to in the preceding sentence to the issuance of the Bonds. Each Municipality that received an allocation of unified volume cap from the State of Illinois after June 1, 1998, as set forth in Exhibit A attached hereto and made a art hereof hereb P , Y allocates such volume ca to the issuance of the Bonds. P Section 3. Allocation of Program Allocation. The origination and servicing agree- ' ment and the trust indenture relating to the issuance of the Bonds shall provide that from the date of issuance of the Bonds through March 3 , 1999 (the "Reservation Period"), a portion of the proceeds of the Bonds shall be made available to each Municipality in the -3-