82-25 AUTHORIZING, APPROVING, RATIFYING AND CONFIRMING CERTAIN ADDITIONS AND CHANGES TO ECONOMIC DEVELOPMENT REVENUE BONDS (BRETTWOOD VILLAGE ASSOCIATES PROJECT)

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SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE Authorization and Issuance of Bonds The Indenture authorizes the issuance of the Bonds and limits their aggregate principal amount to $3,300,000. No additional bonds on a parity with the Bonds may be issued pursuant to the Indenture. The terms of the Bonds, including redemption provisions, are set forth under the caption "THE BONDS" herein. Application of Proceeds of the Bonds All proceeds from the sale of the Bonds (including accrued interest) are required to be deposited with the Trustee and applied as follows: (1) In the Bond Fund, a sum equal to the accrued interest paid by the Underwriter, as initial purchaser of the Bonds, and an additional sum of $65,000 for the payment of interest on the Bonds during the estimated Construc- tion Period. (2) In the Construction Fund, the balance of the proceeds from the sale of the Bonds. The Construction Fund Funds on deposit in the Construction Fund msy be withdrawn only to pay the Cost of the Project, pursuant to direction by the Partnership as provided in the Loan Agreement (See "SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT, THE NOTE AND THE MORTGAGE - Disbursements from the Construction Fund" herein) : Upon completion of the Project, the Partnership is required to provide the Trustee with a completion certificate stating, among other things, the Cost of the Project. If any surplus moneys remain in the Construction Fund after the Project has been completed, such moneys are required to be used as provided in the Loan Agreement. The Bond Fund There are required to be deposited in the Bond Fund, in addition to accrued interest paid by the Underwriter and the sum of $65,000 for the payment of interest on the Bonds during the Construction Period, all amounts payable in respect of the Note, all interest and other income received on investments of Bond Fund moneys, all moneys received by the Trustee pursuant to the Letter of Credit (see "THE LETTER OF CREDIT" herein) except those moneys required to be held in a separate escrow account in the Bond Fund pursuant to the Indenture, and other moneys deposited or received pursuant to the Indenture. While the Bonds are outstanding, amounts in the Bond Fund are required to be used solely for the payment of the interest on the Bonds and for the payment of principal and premium, if any, on the Bonds at maturity or upon redemption or accelera- tion. The Trustee shall not accept any payments for the account of the Part- nership or with respect to the indebtedness evidenced by the Note or under the Loan Agreement from any of the Landowners at any time when any of the Bonds shall be outstanding and entitled to the benefit of the Letter of Credit. 19