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

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Events of Default and Remedies The Loan Agreement provides that one or more of the following events will constitute an "Event of Default:" (a) If the Partnership shall fail to pay (and such failure to pay shall continue for a period of ten �10) days ) any principal of and/or interest on the Note at the times specified therein, or if the Partnership shall fail to deposit in the Bond Fund at least sixty (60) days prior to the optional redemption date of any Bonds the amounts required to be so deposited as a consequence of such optional redemption of Bonds prior to maturity, or if the Partnership shall fail to deposit in the Bond Fund at least five (5) days prior to the mandatory redemption date of the Bonds the amounts required to be so deposited to provide for such mandatory redemption; or (b) failure by the Partnership or the Land Trustee to observe and perform any covenant, condition or agreement to be observed or performed by them, respectively, under the Loan Agreement or the Mortgage, other than as referred to in (a) above, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied is given to the Partnership and the Bank by the City or the Trustee, unless the Trustee shall agree in writing to an extension of auch time prior to its expiration; provided, however, (1) that if such default cannot with due diligence be corrected within the thirty (30) day period, the City and the Trustee will not unreasonably refuse an extension of time if corrective action is instituted within the applicable period and diligently pursued until the default is corrected; (ii) if such default consists solely of the failure to make monthly payments under Section 4.1(b) of the Loan Agreement such failure shall not constitute an event of default until notice thereof shall be given to the Bank and the Bank shall declare a default under the Credit Agreement; or (c) if any representation or warranty made in writing by or on behalf of the Partnership or any general partner thereof or the Land Trustee in the Loan Agreement, Mortgage or the Bond Purchase Agreement (or in any certificate, notice, demand or request delivered pursuant thereto) shall prove to have been false or incorrect in any material respect on the date as of which it is made; or (d) if an event or default shall have occurred and be continuing under the Indenture; or (e) if the Partnership or any general partner thereof shall (i) admit in writing its inability to pay, or failure to pay, its debts generally as they become due; or (ii) file a petition pursuant to the Bankruptcy Code or to take advantsge of any other applicable bankruptcy, insolvency or reorganization statute; or (iii) suspend payment of its obligations; or (iv) make an assigment for the benefit of its creditors; or (v) become insolvent; or (vi) consent to the appointment of any receiver, conservator, liquidating agent, trustee or committee of govern- mental authority in any insolvency, readjustment of debt, marshalling of assets or liabilities or similar proceedings of or relating to the Part- 33