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

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Arbitrage Based on certifications and representations made by the Partnership to the City in the Loan Agreement and certificates delivered at the time of delivery of the Bonds, the City will certify that it will neither authorize nor take any action that would cause the Bonds to be classified as "arbitrage bonds" under Section 103(c) of the Code. Defauit and Remedies Each of the following events constitutes an "event of default" under the Indenture: (a) default in the due and punctual payment of any interest on any Bonds, or default in the due and punctual payment of the principal of or redemption premium, if any, on any Bonds, whether at the stated maturity thereof, or upon redemption (whether optional or mandatory) , or upon the maturity thereof by declaration; or (b) an event of default shall occur and be continuing under the Loan Agreement; or (c) default in the performance or observance of any other of the covenants, agreements or conditions on the part of the City in the Inden- ture or in the Bonds contained, other than as referred to in (a) above, provided that such default will not constitute an event of default until actual notice shall have been given by registered or certified mail by the Trustee or by the holders of not less than 25X in aggregate principal amount of Bonds then outstanding to the City, the Bank and the Partner- ship, the Bank, the City or the Partnership shall not have corrected such default within thirty (30) days after such notice, or shall not have begun corrective action within thirty (30) days and pursued it with due dili- gence if the default cannot be cured within that period; or (d) receipt by the Trustee of a notice from the Bank of an event of default under the Credit Agreement and the termination of the Letter of Credit prior to its stated expiration date. The principal of all Bonds then outstanding, redemption premium, if any, and accrued interest thereon may be declared immediately due and payable by notice in writing from the Trustee to the City, the Partnership and the Bank, under the following circumstances: (i) Upon the occurrence of an event of default under (a) , (b) [by reason of an event of default under Section 6.1(a) , (e) or (f) of the Loan Agreement (See, "SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT, THE NOTE AND THE MORTGAGE -- Events of Default and Remedies" herein) ] or (d) above, the Trustee is required to immediately accelerate payment of the Bonds. (ii) Upon the occurrence of an event of default under (b) [other than by reason of an event of default under Section 6.1(a) , (e) or (f) of the Loan Agreement (See, "SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREE- 22