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

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. � nary or final Official Statement used in connection with the offering or sale of the Bonds and all other documents executed, delivered or recorded in con- nection therewith. In the event moneys in the Construction Fund are not sufficient to pay all costs of the Project, the Partnership has agreed to complete the Project at its own expense without reimbursement therefor from the City, the Trustee or the holders of any Bonds or diminution of its obligation to make all payments required by the Loan Agreement or the Note. Any surplus funds remaining in the Construction Fund after the Completion Date may be used to pay any Cost of the Project not then due as provided in the completion certificate, or to purchase Bonds or to redeem the maximum principal amount of redeemable Bonds or to pay costs of additional economic development facilities. Remaining unexpended Bond proceeds may be transferred to the Bond Fund or to a separate escrow account and used (subject to the arbitrage limita- tions of Section 103(c) of the Code) to redeem outstanding Bonds at the earliest redemption date, unless a redemption premium would be imposed or the Bonds are redeemable only in an amount in excess of such proceeds, in which case they may be used to purchase Bonds on tender, in the open market or at private sale for the purpose of cancellation or for the other purposes per- mitted by and upon the terms and conditions provided in the Loan Agreement. Investment of Construction Fund and Bond Fund Moneys Pursuant to provisions of the Loan Agreement and the Indenture, any moneys held as a part of the Construction Fund and the Bond Fund (except for (i) moneys received pursuant to the Letter of Credit and held for the payment of Bonds including such moneys in a separate escrow account provided in the Inden- ture and (ii) any moneys held for the payment of Bonds upon redemption or acceleration from and after the time notice thereof shall first be given) are required, upon the written direction of the Partnership, to be invested and reinvested by the Trustee, if and to the extent peYmitted by law, in Qualified Investments. Any interest or profit on such investments shall be credited to the respective fund from which such investments were made, and any loss sustained in the investment of moneys on deposit in the Bond Fund or the Construction Fund shall be replaced by the Partnership upon demand by the Trustee except that prior to the Completion Date interest earned on Bond proceeds originally deposited in the Bond Fund shall be deposited in the Construction Fund to pay Costs of the Project. Arbitrage The Partnership and the City will jointly and severally agree that as long as any principal installment of the Bonds remains unpaid they will not take any action whereby moneys derived from the proceeds of the Bonds or from any other source will be invested or used in such a manner that if such action would have been known on the date of issue of the Bonds it would reasonably have been expected to cause the Bonds to be "arbitrage bonds" within the meaning of Section 103(c) of the Code, and further, the Partnership and the City will agree to execute such certifications as are necessary to evidence such c ompl ianc e. 29