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HomeMy WebLinkAbout6227RESOLUTION NO. 6227 A RESOLUTION APPROVING THE SERIES 1988-A FISCAL AGENCY AGREEMENT AND MASTER FISCAL AGENCY AGREE- MENT RELATING TO LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVEL- OPMENT ACT BETWEEN THE CITY OF PUEBLO, COLORADO, AND BANKERS TRUST COMPANY AND THE SUBSTITUTED PROMISSORY NOTES, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE AND DELIVER SAID AGREEMENTS AND PROMISSORY NOTES WHEREAS, the City's request for loan guarantee assistance under Section 108 of the Housing and Community Development Act of 1974, as amended, (the "Act ") consisting of the guarantee of Promissory Notes in the aggregate principal amount of $1,165,000, plus interest, to finance the acquisition of real property and related activities as described in application B- 87 -MC -08 -0007 (the Fountain Creek Flood Control Project) has been approved by the U.S. Department of Housing and Urban Development ( "HUD "), and WHEREAS, the Series 1988 -A Fiscal Agency Agreement and Master Fiscal Agency Agreement and substituted Promissory Notes in the aggregate principal amount of $1,165,000.00 must be executed pursuant to the loan guarantee commitment from HUD issued under Section 108 of the Act and the Contract For Loan Guarantee Assistance previously approved and executed by the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The Series 1988 -A Fiscal Agency Agreement and Master Fiscal Agency Agreement (the "Agreements ") and substituted Promissory Notes in the aggregate principal amount of $1,165,000.00 (the "Promissory Notes "), copies of which are on file in the office of the City Clerk and incorporated herein as if set out herein in full, having been approved as to form by the City Attorney, are hereby approved. SECTION 2 The President of the City Council is hereby authorized and directed to execute and deliver the Agreements and the Promissory Notes for and on behalf of the City and the City Clerk is directed to attest same and affix the seal of the City thereto. INTRODUCED: June 27, 1988 B MIKE SALARDINO Councilman ATTEST: APPROVED: 4144,0;ou A - lei Cit erk Pre ident of the City Council -2- U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT • • WASHINGTON, D.C. 20410 ASSISTANT SECRETARY FOR COMMUNITY PLAWSW AND DEVELOPMENT W. Lewis A. Quigley City Manager #1 City Hill Place Paeblo, Gblorado 81003 Ge t Dear W. Quigley: Enclosed are the documents necessary for the inclusion of your obligation in a public offering of notes guaranteed under Section 108 of the Housing and Community Development Act of 1974, as amended. The public offering is scheduled for July 7,, 1988, and will be underwritten by Citicorp Investment Bank, SaIown Brothers Inc, and Smith Barney, Farris Upham do Co. The documents are: the promissory notes; the Series 1988 -A Fiscal Agency Agreement and the Master Fiscal Agency Agreement awng the Borrowers and Bankers Trust Conpany; and a form containing information necessary to wire transfer funds. The notes are substitutes for your original note, as provided on page 4 of the original note. There is one note per principal maturity. The first interest payment will be February 1, 1989, (not August 1, 1988). The public offering notes delete the language in the original note relating to interim financing. The public offering notes also have a few terms not included in the original note. The "Date of This Note" will be the public offering date and will be filled in on that date. The interest rate will be established for each maturity the week before the public offering date. The public offering note references the Fiscal Agency Agreement (included in this package for your signature). The note also provides for interest to be paid on late payments. (However, if you pay late you will be in default.) The public offering notes will be delivered by HM to the fiscal agent two days before the public offering date and will be held in escrow. At closing, your original note will be paid and cancelled and the public offering notes will be registered and delivered to the holder. The Series 1988 -A Fiscal. Agency Agreement is an agreement to be bound by the Master Fiscal Agency Agreement among the Borrowers and Bankers Trust Company, as Fiscal Agent. Please sign the Series 1988 -A Agreement and return it to Him. You do not need to sen"'us the Master Agreement. The agreement sets forth your duties and responsibilities and those of the fiscal agent. Note that payment on the notes is due to the fiscal agent five business days before the payment date on the notes. 1-be Contract for Loan Guarantee Assistance that you already signed covers your original note and the public offering note. It requires you to pay the customary and usual issuance, underwriting, and other costs of the public offering and provides when and how payment of the coats is to be made. The final amount of the costs will not be known until one week before the public offering date. We will tell you the amount at that time. The enclosed form for wire transfer of funds provides the information that you will need to wire payments on the notes to the fiscal agent. When you return the executed documents to us, please include an oqim LQIL of your counsel, as required by the Contract, that: - the notes are valid, binding, and enforceable obligations of the borrower, - the governing body has authorized, in accordance with applicable state and local law, the issuance of the notes, the pledge of grants pursuant to 24 CFR S570.703(b)(2) is valid, - there is no outstanding litigation that will affect the validity of the notes, and - the Series 1988 -A Fiscal Agency Agreement is a valid, binding, and enforceable obligation of the borrower. Return the executed documents and the legal opinion by June 22, 1988, to: U.S. Department of,Housing and Urban Development ACM N: Paul Webster, Director, Financial Nknagement Division Office of Block Gant Assistance 451 Seventh St., S.W., Roam 7180 Wkshington, D.C. 20410 If "you have any questions regarding this letter, please contact the Financial Management Division at (202) 755 -1871. Sincerely, Patch Director, Office of Block Gant Assistance Enclosures 0 ED June 27, 1988 :/L � p City of Pueblo Secretary of Housing THOMAS E. JAGGER and Urban Development City Attorney U.S. Department of 127 West, First National Bank Bldg. Urban Development PUEBLO, COLORADO 81003 Washington, D.C. 20410 -7000 Dear Sir: We have acted as counsel to the City of Pueblo, a municipal corporation (the "City ") in connection with the City's authorization, execution and delivery of the.Contract For Loan Guarantee Assistance under Section 108 of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 55308) between the City and the Secretary of Housing and Urban Development and Attachment 1 (Custodial Account) and Attachment 2 (Custodial Investment Account (collectively, the "Contract "), the Master Fiscal Agency Agreement and Series 1988-A Fiscal Agency Agreement between the City and Bankers Trust Company (the "Agreements ") and the six substi- tuted Promissory Notes in the aggregate Principal Amount of $1,165,000 bearing Note No. B- 87 -MC -08 -0007 issued in connection with the Contract (the "Promissory Notes"). We have reviewed the Contract, Agreements, Promissory Notes and proceed- ings of the City Council of the City taken in the authorization and issu- ance thereof, and based upon such review we are of the opinion that: 1. The Agreements and the Promissory Notes are valid, binding and enforceable obligations of the City, subject to the qualification that the Promissory Notes shall never constitute a debt or indebtedness of the City within the meaning of any provision or limitation of the Constitution or statutes of the State of Colorado, or the home rule charter of the City, and shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing power, and subject to the further qualification that the Promissory Notes are not general obligations of the City but special, limited obligations of the City payable solely from the security pledged in paragraph 5 of the Contract referenced in the Promissory Notes and to which the Promissory Notes are made subject. 2. The City Council of the City has authorized in accordance with applicable State and local law the issuance of the Promissory Notes. 3. The pledge of grants pursuant to 24 CFR §570.703(b)(2) is valid. 4. There is no outstanding litigation that would affect the validity of the Promissory Notes. Very truly yours, Tho' mas City Attorney City of Pueblo, Colorado SERIES 1988 -A FISCAL AGENCY AGREEMENT Section 1. This SERIES 1988 -A FISCAL AGENCY AGREEMENT (the "Fiscal Agency Agreement ") is made and entered into as of this third day of June, 1988 by and among the undersigned Borrowers (collectively, the "Borrowers") Fiscal Trust aaAgent "New York banking corporation, as Section 2. The parties agree that all terms and provisions of the Master F iacal Agency Agreement by and among the Borrowers and the Fiscal Agent, a copy of which is attached hereto as Exhibit A are by this reference thereto incorporated herein and made a part of this Fiscal Agency Agreement, and the parties hereby agree to be bound by all such terms and provisions. Section 3. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given when and if personally delivered at or mailed by registered mail, postage prepaid (a) in the case of the Borrower, to the address specified below, or such other address as may hereafter be furnished to the Fiscal Agent in writing by the Borrower, and (b) In the case of the Fiscal Agent, to P.O. Box 318 Church Street Station, New York, New York 10015, Attentions Public Debt Services, or such other address as may hereafter be furnished to the Borrowers in writing by the Fiscal Agent. This Fiscal Agency Agreement may be executed in several counterparts, each of which shall be an original and all of which together constitute but one and the same instrument. IN WITNESS WHMBOF, the Borrowers and the Fiscal Agent have caused their their thereunto y written. RRIKERS TRUST O01IpANY the OIIBRS CITY OF BALTIMU MARYLAND By: Authorized Officer By: itle: Address: Attention: NOTE NUMBER: B- 87 -MC -08 -0007 DATE OF THIS NOTE: NOTE BORROWER: City of Pueblo, Colorado REGISTERED HOLDER: PRINCIPAL AMOUNT: $150,000 INTEREST RATE: MATURITY DATE: August 1, 1989 CUSIP: For value received, the undersigned, the City of Pueblo, Colorado (the "Borrower ", which term includes any successors and assigns), a municipal corporation organized and existing under the laws of the State of Colorado promises to pay to the order of the above named Registered Holder (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with interest at the rate hereinafter provided, the principal amount of one hundred fifty thousand Dollars ($ 150,000 ) on the Maturity Date. The Note shall be delivered initially in fully registered form to Bankers Trust Company, New York, New York as Fiscal Agent (the "Fiscal Agent ") pursuant to the terms of the Series 1988 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement "), dated as of June 3, 1988 between the Fiscal Agent and the Borrower. The Fiscal Agency Agreement provides for the Fiscal Agent to perform certain duties, including duties of paying agent and registrar for the Note. This Note may be surrendered to the Fiscal Agent for registration of transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent shall permit reasonable inspection to be made of a copy of the Fiscal Agency Agreement kept on file at its corporate trust office. From the Date of this Note until the Maturity Date, interest at the Interest Rate shall be paid semiannually on February 1 and August 1 of each year, commencing February 1 1989, and at maturity (the "Payment Dates "). Interest shall be calculated on the basis of a 360 day year, consisting of twelve 30 -day months. Principal and interest shall be paid in such funds as are at the time of payment legal tender for the payment of debts due to the United States, in the manner and as provided in the Fiscal Agency Agreement. F This note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of , 198 and any amendments, between the Borrower and the Secretary of-Housing and Urban Development (the "Secretary ") and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308 (the "HCD Act "). This Note is subject to the terms and provisions of said Contract, to which Contract reference is hereby made for a- statement of said terms and provisions, including a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the HCD Act. If a payment required to be made on this Note has not been duly received by the Fiscal Agent from either the Borrower or the Secretary by the close of business on the second business day next succeeding a Payment Date, pursuant to the terms of the Contract, interest shall accrue on the amount of such payment at the Interest Rate from such Payment Date until the date of payment to the Fiscal Agent. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments as may be agreed upon from time to time by the Secretary, the Borrower and the Holder (or if the Holder is The Depository Trust Company, by the owners of the beneficial interests in the Note). A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, as provided in the Contract, unless payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare a Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 C.F.R. §570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the HCD Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. 3 This Note is not subject to prepayment or acceleration. The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. This Note is issued, executed, and delivered on behalf of the Borrower by its authorized official as an obligation guaranteed by the Secretary pursuant to Section 108 of the HCD Act. IN WITNESS WHEREOF, the undersigned, as an authorized official of the Borrower, has executed and delivered this Note. ATTEST: Name (Title) City of Pueblo, Colorado BORROWER BY Name (Title) Signature Signature NOTE NUMBER: B- 87 -MC -08 -000? DATE OF THIS NOTE: NOTE BORROWER: City of Pueblo, Colorado PRINCIPAL AMOUNT: $165,000 INTEREST RATE: REGISTERED HOLDER: MATURITY DATE: August 1, 1990 CUSIP: For value received, the undersigned, the City of Pueblo, Colorado (the "Borrower ", which term includes any successors and assigns), a municipal corporation organized and existing under the laws of the State of Colorado promises to pay to the order of the above named Registered Holder (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with interest at the rate hereinafter provided, the principal amount of one hundred sixty five thousand Dollars ($ 165,000 ) on the Maturity Date. The Note shall be delivered initially in fully registered form to Bankers Trust Company, New York, New York as Fiscal Agent (the "Fiscal Agent ") pursuant to the terms of the Series 1988 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement "), dated as of June 3, 1988 between the Fiscal Agent and the Borrower. The Fiscal Agency Agreement provides for the Fiscal Agent to perform certain duties, including duties of paying agent and registrar for the Note. This Note may be surrendered to the Fiscal Agent for registration of transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent shall permit reasonable inspection to be made of a copy of the Fiscal Agency Agreement kept on file at its corporate trust office. From the Date of this Note until the Maturity Date, interest at the Interest Rate shall be paid semiannually on February 1 and August 1 of each year, commencing February 1, 1989, and at maturity (the "Payment Dates "). Interest shall be calculated on the basis of a 360 day year, consisting of twelve 30 -day months. Principal and interest shall be paid in such funds as are at the time of payment legal tender for the payment of debts due to the United States, in the manner and as provided in the Fiscal Agency Agreement. ✓1 This note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of , 198 and any amendments, between the Borrower and the Secretary of Housing and Urban Development (the "Secretary ") and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308 (the "HCD Act "). This Note is subject to the terms and provisions of said Contract, to which Contract reference is hereby made for a statement of said terms and provisions, including a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the HCD Act. If a payment required to be made on this Note has not been duly received by the Fiscal Agent from either the Borrower or the Secretary by the close of business on the second business day next succeeding a Payment Date, pursuant to the terms of the Contract, interest shall accrue on the amount of such payment at the Interest Rate from such Payment Date until the date of payment to the Fiscal Agent. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments as may be agreed upon from time to time by the Secretary, the Borrower and the Holder (or if the Holder is The Depository Trust Company, by the owners of the beneficial interests in the Note). A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, as provided in the Contract, unless payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare a Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 C.F.R. §570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the HCD Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. 3 The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. This Note is issued, executed, and delivered on behalf of the Borrower by its authorized official as an obligation guaranteed by the Secretary pursuant to Section 108 of the HCD Act. This Note is not subject to prepayment or acceleration. IN WITNESS WHEREOF, the undersigned, as an authorized official of the Borrower, has executed and delivered this Note. ATTEST: Name City of Pueblo, Colorado BORROWER M Title (Title) (Signature) Signature NOTE NUMBER: B- 87 -MC -08 -0007 NOTE BORROWER: City of Pueblo, Colorado DATE OF THIS NOTE: PRINCIPAL AMOUNT: $185,000 INTEREST RATE: MATURITY DATE: August 1, 1991 REGISTERED HOLDER: CUSIP: For value received, the undersigned, the City of Pueblo, Colorado (the "Borrower ", which term includes any successors and assigns), a municipal corporation organized and existing under the laws of the State of Colorado promises to pay to the order of the above named Registered Holder (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with interest at the rate hereinafter provided, the principal amount of one hundred eighty five thousand Dollars ($ 185,000 ) on the Maturity Date. The Note shall be delivered initially in fully registered form to Bankers Trust Company, New York, New York as Fiscal Agent (the "Fiscal Agent ") pursuant to the terms of the Series 1988 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement "), dated as of June 3, 1988 between the Fiscal Agent and the Borrower. The Fiscal Agency Agreement provides for the Fiscal Agent to perform certain duties, including duties of paying agent and registrar for the Note. This Note may be surrendered to the Fiscal Agent for registration of transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent shall permit reasonable inspection to be made of a copy of the Fiscal Agency Agreement kept on file at its corporate trust office. From the Date of this Note until the Maturity Date, interest at the Interest Rate shall be paid semiannually on February 1 and August 1 of each year, commencing February 1, 1989, and at maturity (the "Payment Dates "). Interest shall be calculated on the basis of a 360 day year, consisting of twelve 30 -day months. Principal and the time of payment the United States, Agency Agreement. interest shall be paid in such funds as are at legal tender for the payment of debts due to in the manner and as provided in the Fiscal 2 This note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of , 198 and any amendments, between the Borrower and the Secretary of Housing and Urban Development (the "Secretary ") and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308 (the "HCD Act "). This Note is subject to the terms and provisions of said Contract, to which Contract reference is hereby made for a statement of said terms and provisions, including a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the HCD Act. If a payment required to be made on this Note has not been duly received by the Fiscal Agent from either the Borrower or the Secretary by the close of business on the second business day next succeeding a Payment Date, pursuant to the terms of the Contract, interest shall accrue on the amount of such payment at the Interest Rate from such Payment Date until the date of payment to the Fiscal Agent. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments as may be agreed upon from time to time by the Secretary, the Borrower and the Holder (or if the Holder is The Depository Trust Company, by the owners of the beneficial interests in the Note). A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, as provided in the Contract, unless payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare a Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 C.F.R. §570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the HCD Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. This Note is not subject to prepayment or acceleration. The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. This Note is issued, executed, and delivered on behalf of the Borrower by its authorized official as an obligation guaranteed by the Secretary pursuant to Section 108 of the HCD Act. IN WITNESS WHEREOF, the undersigned, as an authorized official of the Borrower, has executed and delivered this Note. City of Pueblo, Colorado BORROWER 3 ATTEST: Name B Name (Title) Signature (Title) Signature z .s NOTE NUMBER: B- 87 -MC -08 -0007 DATE OF THIS NOTE: NOTE BORROWER: City of Pueblo, Colorado REGISTERED HOLDER: PRINCIPAL AMOUNT: $200,000 INTEREST RATE: MATURITY DATE: August 1, 1992 CUSIP: For value received, the undersigned, the City of Pueblo, Colorado (the "Borrower ", which term includes any successors and assigns), a municipal corporation organized and existing under the laws of the State of Colorado promises to pay to the order of the above named Registered Holder (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with interest at the rate hereinafter provided, the principal amount of two hundred thousand Dollars ($ 200,000 ) on the Maturity Date. The Note shall be delivered initially in fully registered form to Bankers Trust Company, New York, New York as Fiscal Agent (the "Fiscal Agent ") pursuant to the terms of the Series 1988 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement"), dated as of June 3, 1988 between the Fiscal Agent and the Borrower. The Fiscal Agency Agreement provides for the Fiscal Agent to perform certain duties, including duties of paying agent and registrar for the Note. This Note may be surrendered to the - Fiscal Agent for registration of transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent shall permit reasonable inspection to be made of a copy of the Fiscal Agency Agreement kept on file at its corporate trust office. From the Date of this Note until the Maturity Date, interest at the Interest Rate shall be paid semiannually on February 1 and August 1 of each year, commencing February 1, 1989, and at maturity (the "Payment Dates "). Interest shall be calculated on the basis of a 360 day year, consisting of twelve 30 -day months. Principal and interest shall be paid in such funds as are at the time of payment legal tender for the payment of debts due to the United States, in the manner and as provided in the Fiscal Agency Agreement. } 2 This note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of , 198 and any amendments, between the Borrower and the Secretary of Housing and Urban Development (the "Secretary ") and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. 15308 (the "HCD Act "). This Note is subject to the terms and provisions of said Contract, to which Contract reference is hereby made for a statement of said terms and provisions, including a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the HCD Act. If a payment required to be made on this Note has not been duly received by the Fiscal Agent from either the Borrower or the Secretary by the close of business on the second business day next succeeding a Payment Date, pursuant to the terms of the Contract, interest shall accrue on the amount of such payment at the Interest Rate from such Payment Date until the date of payment to the Fiscal Agent. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments as may be agreed upon from time to time by the Secretary, the Borrower and the Holder (or if the Holder is The Depository Trust Company, by the owners of the beneficial interests in the Note). A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, as provided in the Contract, unless payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare a Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 C.F.R. 1570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the HCD Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. 3 The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. This Note is issued, executed, and delivered on behalf of the Borrower by its authorized official as an obligation guaranteed by the Secretary pursuant to Section 108 of the HCD Act. This Note is not subject to prepayment or acceleration. IN WITNESS WHEREOF, the undersigned, as an authorized official of the Borrower, has executed and delivered this Note. ATTEST: Name City of Pueblo, Colorado BORROWER (Title) (Title) (Signature) (Signature) NOTE NUMBER: B- 87 -MC -08 -0007 DATE OF THIS NOTE: BORROWER: City of Pueblo, Colorado REGISTERED HOLDER: PRINCIPAL AMOUNT: $220,000 INTEREST RATE: MATURITY DATE: August 1, 1993 CUSIP: For value received, the undersigned, the City of Pueblo, Colorado (the "Borrower ", which term includes any successors and assigns), a municipal corporation organized and existing under the laws of the State of Colorado promises to pay to the order of the above named Registered Holder (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with Interest at the rate hereinafter provided, the principal amount of two hundred twenty thousand Dollars ($ 220,000 ) on the Maturity Date. The Note shall be delivered initially in fully registered form to Bankers Trust Company, New York, New York as Fiscal Agent (the "Fiscal Agent ") pursuant to the terms of the Series 1988 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement "), dated as of June 3, 1988 between the Fiscal Agent and the Borrower. The Fiscal Agency Agreement provides for the Fiscal Agent to perform certain duties, including duties of paying agent and registrar for the Note. This Note may be surrendered to the Fiscal Agent for registration of transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent shall permit reasonable inspection to be made of a copy of the Fiscal Agency Agreement kept on file at its corporate trust office. From the Date of this Note until the Maturity Date, interest at the Interest Rate shall be paid semiannually on February 1 and August 1 of each year, commencing February 1, 1989, and at maturity (the "Payment Dates "). Interest shall be calculated on the basis of a 360 day year, consisting of twelve 30 -day months. Principal and interest shall be paid in such funds as are at the time of payment legal tender for the payment of debts due to the United States, in the manner and as provided in the Fiscal Agency Agreement. K This note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of , 198 and any amendments, between the Borrower and t e Secretary of Housing and Urban Development (the "Secretary ") and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308 (the "HCD Act "). This Note is subject to the terms and provisions of said Contract, to which Contract reference is hereby made for a statement of said terms and provisions, including a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the HCD Act. If a payment required to be made on this Note has not been duly received by the Fiscal Agent from either the Borrower or the Secretary by the close of business on the second business day next succeeding a Payment Date, pursuant to the terms of the Contract, interest shall accrue on the amount of such payment at the Interest Rate from such Payment Date until the date of payment to the Fiscal Agent. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments as may be agreed upon from time to time by the Secretary, the Borrower and the Holder (or if the Holder is The Depository Trust Company, by the owners of the beneficial interests in the Note). A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, as provided in the Contract, unless payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare a Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 C.F.R. §570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the HCD Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. 3 The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. This Note is issued, executed, and delivered on behalf of the Borrower by its authorized official as an obligation guaranteed by the Secretary pursuant to Section 108 of the HCD Act. This Note is not subject to prepayment or acceleration. IN WITNESS WHEREOF, the undersigned, as an authorized official of the Borrower, has executed and delivered this Note. ATTEST: Name City of Pueblo, Colorado BORROWER BY: 2-7 Name (Title) (Title) Signature (Signature) NOTE NUMBER: B- 87 -MC -08 -0007 DATE OF THIS NOTE: NOTE BORROWER: City.of Pueblo, Colorado REGISTERED HOLDER: PRINCIPAL AMOUNT: $245,000 INTEREST RATE: MATURITY DATE: August 1, 1994 CUSIP. For value received, the undersigned, the City of Pueblo, Colorado (the "Borrower ", which term includes any successors and assigns), a municipal corporation organized and existing under the laws of the State of Colorado promises to pay to the order of the above named Registered Holder (the "Holder ", which term includes any successors or assigns), at the time, in the manner, and with interest at the rate hereinafter provided, the principal amount of two hundred forty five thousand Dollars ($ 245,000 ) on the Maturity Date. The Note shall be delivered initially in fully registered form to Bankers Trust Company, New York, New York as Fiscal Agent (the "Fiscal Agent ") pursuant to the terms of the Series 1988 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement "), dated as of June 3, 1988 between the Fiscal Agent and the Borrower. The Fiscal Agency Agreement provides for the Fiscal Agent to perform certain duties, including duties of paying agent and registrar for the Note. This Note may be surrendered to the Fiscal Agent for registration of transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent shall permit reasonable Inspection to be made of a copy of the Fiscal Agency Agreement kept on file at its corporate trust office. From the Date of this Note until the Maturity Date, interest at the Interest Rate shall be paid semiannually on February 1 and August 1 of each year, commencing February 1, 1989, and at maturity (the "Payment Dates "). Interest shall be calculated on the basis of a 360 day year, consisting of twelve 30 -day months. Principal and interest shall be paid in such funds as are at the time of payment legal tender for the payment of debts due to the United States, in the manner and as provided in the Fiscal Agency Agreement. 2 This note evidences indebtedness incurred pursuant to and in accordance with a Contract for Loan Guarantee Assistance (the "Contract ") dated as of , 198 and any amendments, between the Borrower and the Secretary of Housing and Urban Development (the "Secretary ") and pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. $5308 (the "HCD Act "). This Note is subject to the terms and provisions of said Contract, to which Contract reference is hereby made for a statement of said terms and provisions, including a description of the collateral security for this Note. The payment of principal and interest when and as due on this Note in accordance with its terms is unconditionally guaranteed by the Secretary to the holder (the "Guarantee "). The Secretary's Guarantee shall be executed contemporaneously with execution of this Note, and shall be issued pursuant to and in accordance with the terms and provisions of the Contract and Section 108 of the HCD Act. If a payment required to be made on this Note has not been duly received by the Fiscal Agent from either the Borrower or the Secretary by the close of business on the second business day next succeeding a Payment Date, pursuant to the terms of the Contract, interest shall accrue on the amount of such payment at the Interest Rate from such Payment Date until the date of payment to the Fiscal Agent. To the extent not inconsistent with applicable law, this Note shall be subject to modification by such amendments as may be agreed upon from time to time by the Secretary, the Borrower and the Holder (or if the Holder is The Depository Trust Company, by the owners of the beneficial interests in the Note). A default under this Note shall occur upon failure by the Borrower to pay when due principal or interest on the Note, as provided in the Contract, unless payment is made when due by the Secretary pursuant to the terms and provisions of the Contract. The Borrower hereby waives notice of default and opportunity for hearing for failure to make a payment when due. The Secretary may declare a Borrower in default under this Note if the Secretary makes a final decision in accordance with the provisions of 24 C.F.R. 1570.913, including requirements for reasonable notice and opportunity for hearing, that the Borrower has failed to comply substantially with Title I of the HCD Act. Notwithstanding any other provision, following the giving of such reasonable notice, the Secretary may withhold the guarantee of any or all obligations not yet guaranteed under outstanding commitments and request the Borrower's financial institution to refuse to honor any instruments drawn upon, or withdrawals from the Guaranteed Loan Funds Account or to release, obligations and assignments from the Guaranteed Loan Funds Investment Account, pending the Secretary's final decision. 3 The Borrower hereby waives any requirement for presentment, protest or other demand or notice with respect to this Note. This Note is issued, executed, and delivered on behalf of the Borrower by its authorized official as an obligation guaranteed by the Secretary pursuant to Section 108 of the HCD Act. This Note is not subject to prepayment or acceleration. IN WITNESS WHEREOF, the undersigned, as an authorized official of the Borrower, has executed and delivered this Note. ATTEST: Name City of Pueblo, Colorado BORROWER VAI sueSo _/ �..� VA ( Title ) ( Titl e ) Signature Signature MASTER FISCAL AGENCY AGREEMENT among the BORROWERS and BANKERS TRUST COMPANY, as Fiscal Agent TABLE OF CONTENTS ARTICLE I: DEFINITIONS Section Page Definitions .............. ............................... 1 ARTICLE II: DELIVERY AND REGISTRATION OF NOTES 2.01 Details of the Notes .. ............................... 6 2.02 Acceptance by Fiscal Agent ........................... 6 2.03 Authorization Order ... ............................... 7 ARTICLE III: ADMINISTRATION OF NOTES 3.01 Modification of Notes . ............................... 9 3.02 Fixing of Record Date . ............................... 10 3.03 Collection on the Guarantees ....................... 10 3.04 Collection of Payments; Note Account .............. .. ... 10 3.05 Defeasance Account....... ........................ 11 3.06 Fiscal Agent to Act as Paying Agent .................. 13 3.07 Permitted Charges Against the Note Account........... 14 3.08 Fiscal Agent to Cooperate; Release of.Notes.......... 15 3.09 Replacement Notes ..... ............................... 16 ARTICLE IV: PAYMENTS 4 .01 Payments .............. ............................... 17 ARTICLE V: REGISTRATION OF NOTES 5.01 Registration of Transfers and Exchanges of Notes..... 19 5.02 Persons Deemed Holders ............................... 20 5.03 Maintenance of Office or Agency ...................... 21 ARTICLE VI: RIGHTS AND DUTIES OF THE BORROWER 6.01 Compensation and Indemnification of the Fiscal Agent ........ ............................... 21 ARTICLE VII: RIGHTS AND DUTIES OF THE FISCAL AGENT 7.01 Duties of the Fiscal Agent ........................... 23 7.02 Certain Matters Affecting the Fiscal Agent........... 25 7.03 Fiscal Agent not Liable for Notes .................... 26 7.04 Eligibility Requirements for Fiscal Agent............ 26 7.05 Resignation and Removal of the Fiscal Agent.......... 27 7.06 Merger or Consolidation of Fiscal Agent .............. 29 7.07 Fiscal Agent May Own Notes ........................... 30 (i) 7.08 Fidelity Bond or Insurance ........................... 30 ARTICLE VIII: TERMINATION 8 .01 Termination ........... ............................... 31 ARTICLE IX: MISCELLANEOUS PROVISIONS 9 .01 Amendment ............... .... ...................... 32 9.02 Inspection of Documents by Holders ................... 33 9 .03 Governing Law ......... ............................... 33 9 .04 Notices ............................................. 33 9.05 Severability of Provisions ........................... 34 9 .06 Counterparts .......... ............................... 34 Exhibit A Form of Authorization Order .................... A -1 Exhibit B DTC Letter to Fiscal Agent ..................... B -1 Exhibit C Letter of Representations from the Fiscal Agent to DTC .......................... C -1 (ii) MASTER FISCAL AGENCY AGREEMENT This FISCAL AGENCY AGREEMENT (the "Agreement ") is made and entered into by and among the Borrowers, as hereinafter defined, (the "Borrowers ") and Bankers Trust Company, a New York banking corporation, as Fiscal Agent (the "Fiscal Agent "). In consideration of the premises and of the mutual agreements herein contained, the parties agree as follows: ARTICLE I DEFINITIONS Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings: Act The Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5301 et seq. Agreement This Fiscal Agency Agreement and all amendments and supplements hereto. Authorization Order The written order of the Secretary delivered to the Fiscal Agent pursuant to Section 2.03 hereto, in substantially the form set forth in Exhibit A hereto. Authorized Officer When used with respect to the Fiscal Agent, any officer of the Fiscal Agent who at the time shall have been designated to act on behalf of the Fiscal Agent by a written certificate furnished to the Secretary containing the specimen signature of such person and signed on behalf of the Fiscal Agent by one of the above. Authorized Official When used with respect to the United States Department of Housing and Urban Development, the Secretary, and any other official of such department who at the time shall have been duly authorized to act on behalf of the Secretary. Beneficial Owners The actual purchasers of the Notes whose ownership interests therein will be recorded through the book- entry system of DTC. Borrowers Units of general local government, or public agencies designated by such units, which have issued debt obligations guaranteed by the Secretary pursuant to Section 108. Business Day A day on which banking institutions in New York City are not required or authorized to remain closed and on which the New York Stock Exchange is not closed. Cede & Co. The nominee of DTC. Contract Any Contract for Loan Guarantee Assistance entered into between a Borrower and the Secretary providing for the issuance of Notes and their related Guarantees by the Borrower and the Secretary, respectively. Corporate Trust Office The principal office of the Fiscal Agent in the State of New York at which, at any particular time, its duties with respect to this Agreement shall be administered, -2- which office at the date of the execution of this Agreement is located at 4 Albany Street, New York, New York 10015, Attention: Public Debt Services. DTC The Depository Trust Company, a securities depository for the Notes and their related Guarantees or its nominee. Date of Note The date of note stated on any Note, which shall be the date on which the Note and its related Guarantee are delivered initially to the Holders. Defeasance Account With respect to any Note, any account created and maintained pursuant to Section 3.05. Default A default by a Borrower under the terms of its Note. Director, Financial Management Division The Director of the Financial Management Division, Office of the Assistant Secretary for Community Planning and Development, U.S. Department of Housing and Urban Development, and any other official of such department who at the time shall have been duly authorized to act on behalf of such Director. Fee Account With respect to any Note, any account created and maintained pursuant to Section 6.01. Fiscal Agent Bankers Trust Company, a New York banking corporation, or its successor in interest, or any successor fiscal agent appointed as herein provided. -3- Government Obligation A direct obligation of, or any obligation for which the full and timely payment of principal and interest is guaranteed by, the United States of America, including but not limited to, United States Treasury Certificates of Indebtedness, Notes and Bonds - State and Local Government Series, or certificates of ownership of the principal of or interest on direct obligations of, or obligations unconditionally guaranteed by, the United States of America, which obligations are held in trust by a commercial bank which is a member of the Federal Reserve System and has capital and surplus (exclusive of undivided profits) in excess of $100,000,000. Guarantee With respect to any Note, the related Guarantee made by the Secretary pursuant to Section 108 by which the Secretary guarantees the timely payment of the principal of and interest on such Note. Guarantee Payment Any payment made by the Secretary pursuant to a Guarantee. Holder The Person in whose name a Note is registered in the Note Register. Letter of Representations The letter from the Fiscal Agent to be furnished to DTC in accordance with Section 7.01 herein, in substantially the form set forth in Exhibit C hereto. Maturity Date The stated maturity date of a Note, and with respect to any Notes called for redemption prior to maturity, the date on which such notes are redeemed. -4- Note Any note issued by a Borrower and guaranteed by the Secretary pursuant to Section 108. Note Account With respect to any Note, the account created and maintained pursuant to Section 3.04. Note Register The Register maintained by the Fiscal Agent pursuant to Section 5.01. Opinion of Counsel A written opinion of counsel for the Secretary, who may be, but does not have to be, an employee of the Department of Housing and Urban Development. Payment Date With respect to a Note, each February 1 and August 1 on which interest or principal is due and payable, or if such Payment Date is not a Business Day, the next succeeding Business Day. Person Any individual, corporation, partnership, joint venture, association, joint -stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. Principal Amount The principal amount stated on the face of a Note. Record Date With respect to any Note, the close of business on the fifteenth calendar day of the month next preceding the month in which a Payment Date occurs. Secretary The Secretary of Housing and Urban Development. Sect ion 108: Section 108 of Title 1 of the Act. -5- Underwriters Shall initially be the following: Salomon Brothers Inc, Smith Barney, Harris Upham & Co. Incorporated, and Citicorp Investment Bank /Citibank, N.A., and thereafter shall be the same, unless with respect to any series of Notes, any different underwriters are identified in the Authorization Order from the Secretary to the Fiscal Agent with respect to such series. ARTICLE II DELIVERY AND REGISTRATION OF NOTES SECTION 2.01 Details of the Notes From time to time following the execution and delivery hereof, the Borrowers will deliver or cause to be delivered to the Fiscal Agent, certain Notes and their related Guarantees. No later than two (2) Business Days before the time of any delivery of Notes to Holders, the Secretary shall deliver to the Fiscal Agent the Notes of each Borrower. Each Borrower's Notes shall be in the form of a separate single fully registered note in the amount of each separate stated maturity of the Notes. On the date of original delivery thereof to the Fiscal Agent, the Notes shall be registered in the registry books of the Fiscal Agent pursuant to instructions to be furnished by the Underwriters to the Fiscal Agent at least two (2) Business Days before the date of delivery to the Holders. The Borrower authorizes the Secretary to list such Notes in the Authorization Order delivered by the Secretary MM pursuant to Section 2.03. The Fiscal Agent shall have no responsibility in respect of the authorizations of the Borrower hereunder or with respect to the information supplied by the Secretary in the Authorization Order from the Secretary pursuant to Section 2.03. Each Borrower does hereby designate and appoint the Fiscal Agent as the paying agent and registrar of all of such Borrower's Notes. SECTION 2.02. Acceptance by Fiscal Agent Upon its receipt of the Notes and their related Guarantees, the Fiscal Agent will acknowledge receipt of such Notes and related Guarantees delivered by the Secretary to the Fiscal Agent, as paying agent and registrar as set forth in Section 2.01 above, and will immediately deliver such Notes and related Guarantees to the Holders in accordance with the terms and conditions of this Agreement. SECTION 2.03. Authorization Order The Fiscal Agent agrees that concurrently with its receipt of the Notes and their related Guarantees from the Secretary on behalf of the Borrowers, and upon receipt of an Authorization Order from the Secretary and such Opinion of Counsel and other documents as the Fiscal Agent may reasonably request, the Fiscal Agent will register and deliver the Notes and their related Guarantees in accordance with, and upon the direction of, the Secretary as specified in such Authorization Order. -7- Not less than two (2) Business Days (or such shorter period as the Secretary and the Fiscal Agent shall agree upon) before the time of any delivery of any Notes to Holders under this Agreement, the Secretary shall deliver an Authorization Order substantially in the form of Exhibit A hereto, directing the Fiscal Agent to register the Notes and deliver the Notes and their related Guarantees in accordance with the terms set forth therein. Each such order shall set forth: (a) the designation of the series of Notes; (b) the name of the issue; (c) the dates on which interest payments are due; (d) the interest rates and Maturity Dates of the Notes; (e) the principal amount and maturity of the Notes of each Borrower which the Secretary has authorized for delivery to the Fiscal Agent, for registration and subsequent delivery to the registered Holder; (f) whether the to be physically held DTC and the date such (g) whether the acceleration prior to terms and conditions acceleration; and Notes and their related Guarantees are by the Fiscal Agent or transferred to delivery or transfer is to occur; Notes are subject to redemption or their Maturity Dates and if so, the relating to any redemption or ME-110 (h) any additional directions from the Secretary regarding the public offering of the Notes. ARTICLE III ADMINISTRATION OF NOTES SECTION 3.01. Modification of Notes Any term of any Note may be modified by such amendments as may be agreed upon from time to time by the Secretary and the Holder (or if the Holder is DTC, by the Beneficial Owners of such Note) and the Borrower. Within fifteen (15) days after receipt by the Fiscal Agent at its Corporate Trust Office of notice from the Secretary of any meeting or other occasion for the giving of consent by a Holder, the Fiscal Agent shall give notice to such Holder, which notice shall contain (a) such information as is contained in the notice received by the Fiscal Agent, (b) a statement that such Holder at the close of business on the record date specified in accordance with Section 3.02 hereof will be entitled, subject to any applicable provisions of law and any applicable provisions of or governing such Notes, to consent to the proposed change in the terms of such Holder's Note. No such change in the terms of any Note shall alter or affect the Secretary's guarantee of timely payment of all principal and interest on such Note. SECTION 3.02. Fixing of Record Date Whenever the Fiscal Agent is required to give notice pursuant to Section 3.01, the Fiscal Agent shall Fix the Record Date (which shall be five (5) days after receipt of notice thereof from the Secretary (or if such day is not a Business Day then the next succeeding Business Day)) for the determination of the Holders who shall be entitled to receive such notice. Only such Holders at the close of business on such record date shall be entitled to receive any such notice. SECTION 3.03. Collection on the Guarantees Pursuant to each Guarantee, the Secretary will unconditionally guarantee the payment of all principal and interest on the Note to which such Guarantee relates when and as due in accordance with the terms of the Notes. Pursuant to the request of DTC, in substantially the form set forth in Exhibit B hereto, the Fiscal Agent hereby agrees to serve as DTC's agent solely for the purpose of collecting payment on any Guarantee while DTC or its nominee is the Holder of the corresponding Note. SECTION 3.04. Collection of Payments; Note Account For each of its Notes, the Borrower shall establish and maintain with the Fiscal Agent a separate non - interest bearing trust account (a "Note Account ") into which the Fiscal Agent shall deposit the following: (a) All regular interest payments on such Note, including those made by the Borrower, those made with funds transferred by the Fiscal Agent from the Defeasance Account to the Note Account, and those made by the Secretary pursuant to a Guarantee; and -10- (b) All principal payments on such Note at its Maturity Date, including those made by the Borrower, those made with funds transferred by the Fiscal Agent from the Defeasance Account to the Note Account, and those made by the Secretary pursuant to a Guarantee. Guarantee Payments made by the Secretary in accordance with the terms of Section 3.06 herein shall be deposited by the Fiscal Agent in the applicable Note Account. The moneys held as part of a Note Account shall be held in trust for the benefit of the Holder of the corresponding Note and shall be applied by the Fiscal Agent in accordance with the provisions of Section 3.07 herein. SECTION 3.05. Defeasance Account For each of its Notes which a Borrower elects to defease, the Borrower shall establish and maintain with the Fiscal Agent a trust account (a "Defeasance Account "), separate and apart from all other accounts of the Borrower and the Fiscal Agent. The Borrower shall irrevocably deposit in such account either moneys or Government Obligations, which in the sole determination of the Secretary, mature and bear interest at times and in amounts sufficient, together with the moneys already on deposit with the Fiscal Agent for such purpose, to pay when due the principal and interest to become due on the Notes. The moneys and any investments held as part of a Defeasance Account shall be held in trust for the benefit of the -11- corresponding Holder and shall be applied by the Fiscal Agent solely to the payment of principal of and interest on the related Note. All of the Borrower's Notes or all of the Borrower's Notes of any maturity may be defeased as provided herein. The Borrower's election to defease any Note shall not result in the payment of interest before the applicable due date or of principal before the Maturity Date. Upon and in accordance with the Secretary's instructions pursuant to the corresponding Contract, the Fiscal Agent shall apply so much of the sums deposited in a Defeasance Account as shall be necessary to purchase the Government Obligations designated by the Secretary's instructions. The Fiscal Agent shall collect on the due dates thereof the principal of and interest and premium, if any, on the Government Obligations on deposit in the Defeasance Account and shall, without further authorization or direction, apply such receipts on each Payment Date to the payment of interest and principal then due. At the opening of business on the relevant Payment Date, the Fiscal Agent shall transfer from the Defeasance Account to the Note Account the amount of interest and principal to be paid. Receipts in excess of the amount necessary to make the payments on each Payment Date shall be reinvested by the Fiscal Agent in Government Obligations maturing on or before the next Payment Date. The Fiscal Agent shall collect on the -12- due dates thereof the principal of and interest and premium, if any, on such Government Obligations, and shall, without further authorization or direction, apply such receipts to the payment of interest and principal on the next Payment Date. Amounts under $5,000 which cannot be invested in such obligations on any Payment Date may be held uninvested. SECTION 3.06. Fiscal Agent to Act as Paying Agent The Fiscal Agent shall receive the payments due on the Notes and deposit such payments in the Note Accounts as provided in Sections 3.04 and 3.05. The Borrower shall make payments directly to the Fiscal Agent by 3:00 P.M. (New York City time) on the fifth Business Day next preceding the relevant Payment Date. No later than 1:00 P.M. (New York City time) on the fourth Business Day next preceding each Payment Date, the Fiscal Agent shall determine whether all payments required to be made on the Notes have been duly received from each Borrower. If such payments have not been received, the Fiscal Agent shall notify the Secretary by a telephone call to the Director, Financial Management Division, confirmed in writing by telex or telecopy, that the Secretary may be required to make a Guarantee Payment, and shall provide notice of the amount of such payment. If a payment required to be made by a Borrower on a Note has not been duly received by the Fiscal Agent by the close of business on the Payment Date, no later than 10:00 A.M. (New York City time) on the -13- Business Day next succeeding the relevant Payment Date, the Fiscal Agent shall notify the Secretary, by a telephone call to the Director, Financial Management Division, confirmed in writing by telex or telecopy, that the Secretary is required to make a Guarantee Payment and shall provide notice of the amount of such payment. The Secretary shall make any required Guarantee Payment by wire transfer to the Fiscal Agent in immediately available funds, for subsequent payment by the Fiscal Agent to the Holder in accordance with the terms of Section 4.01 herein. If a payment required to be made on a Note has not been duly received from either the Borrower or the Secretary by the close of business on the second Business Day next succeeding the Payment Date, pursuant to the terms of the Borrower's Contract, interest shall accrue on the amount of such payment at the stated rate from the applicable Payment Date until the date of payment to the Fiscal Agent. SECTION 3.07. Permitted Charges Against the Note Account The Fiscal Agent shall, from time to time, withdraw funds from a Note Account for the following purposes: (a) to make payments to the Holders in the amounts and in the manner provided for in Section 4.01; (b) to reimburse the Secretary for a Guarantee Payment made with respect to the Note to which such Note Account relates, provided that such reimbursement shall be limited to -14- amounts received by the Fiscal Agent which represent late recoveries of payments of principal and /or interest respecting which any Guarantee Payment was made; and (c) to clear and terminate the Account pursuant to Section 8.01. SECTION 3.08. Fiscal Agent to Cooperate; Release of Notes Upon payment in full to the Holder of any Note (including pursuant to the related Guarantee), the Fiscal Agent shall release the Note to the Secretary. SECTION 3.09. Replacement Notes In the event that the Fiscal Agent is given notice that DTC has determined to discontinue providing its service as securities depository with respect to the Notes and their related Guarantees, the Fiscal Agent shall arrange for another qualified securities depository to maintain custody of the Notes and their related Guarantees. If the Fiscal Agent fails to identify another qualified securities depository, the Fiscal Agent and the Borrowers will take appropriate action to deliver fully registered Notes to the Beneficial Owners of the Notes. In the event the Secretary and all of the Borrowers determine that continuation of the system of book -entry transfers through DTC is not in the best interests of the Beneficial Owners and so advise the Fiscal Agent, the Fiscal Agent will discontinue the book -entry system with DTC. If the Fiscal Agent fails to identify another qualified securities depository to replace DTC, -15- the Fiscal Agent and the Borrowers will take appropriate action to deliver fully registered Notes to the Beneficial Owners of the Notes. If (i) any mutilated Note is surrendered to the Fiscal Agent, or the Fiscal Agent receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the Fiscal Agent such security or indemnity as may be required by it to hold it harmless, then, in the absence of notice to the Fiscal Agent that such Note has been acquired by a bona fide purchaser and upon the Holder paying reasonable expenses of the Fiscal Agent, the Borrower shall execute and the Fiscal Agent shall deliver, in exchange for such mutilated Note or in lieu of such destroyed, lost or stolen Note, a new Note of like principal amount or appreciated Principal Amount, as appropriate, date and tenor. If any such mutilated, destroyed, lost or stolen Note has become or will on or before the next Note Payment Date become due and payable, the Fiscal Agent may, in its discretion, pay such Note when due instead of delivering a new Note. ARTICLE IV PAYMENTS SECTION 4.01. Payments On each Payment Date relating to a particular Note, the Fiscal Agent, as paying agent for the Borrower, shall pay to the corresponding Holder determined as of -16- the close of business on the next preceding Record Date (other than as provided in Section 8.01 respecting the final payment) all amounts credited to the Note Account relating to such Note as of 10:00 A.M. (New York City Time) on the applicable Payment Date, other than amounts, if any, which represent late recoveries of principal and /or interest respecting which any Guarantee Payment was made. Upon presentation and surrender of a Note at maturity, the Principal Amount is payable by check in clearinghouse funds at the Corporate Trust Office of the Fiscal Agent. Interest payments on the Notes shall be made by the Fiscal Agent by mailing checks in clearinghouse funds payable to the registered Holders thereof as the same shall appear in the Note Register on the relevant Record Date or, if the Holder receiving such payment holds Notes evidencing in the aggregate ownership of not less than $1,000,000 of Notes, by wire transfer to such commercial bank located in the continental United States having appropriate facilities therefor as such Holder may designate in writing to the Fiscal Agent (provided that the Holder shall have given the Fiscal Agent appropriate written wire transfer instructions not later than the Record Date with respect to such payment). (If the Holder of a Note is DTC, interest and principal payments shall be paid by the Fiscal Agent to CEDE & CO., as nominee of DTC, or its registered assigns in New York clearinghouse funds on each Payment Date. Interest and principal and interest shall be made payable to the order of "CEDE & CO." -17- and shall be made by the Fiscal Agent by check or wire transfer to DTC at its address as the same shall appear in the Note Register). ARTICLE V REGISTRATION OF NOTES SECTION 5.01. Registration of Transfers and Exchanges of Notes The Fiscal Agent shall be the registrar of the Notes for the purposes of registering the Notes and maintaining a record of any transfers and exchanges of Notes as herein provided. The Fiscal Agent shall cause to be kept at the office to be maintained in accordance with the provisions of Section 5.03 hereof, a Note Register in which it shall record for each Note, the name and address of the registered Holder, the Principal Amount and Maturity Date thereof and such other information as may be required by applicable law or regulation. Registration of transfer shall be subject to such reasonable regulations as the Fiscal Agent may prescribe. No registration of transfer or exchange of any Note may be made unless all information required to be provided by the Holder has been given as provided in the form of Note. Upon surrender for registration of transfer of any Note at the office which the Fiscal Agent maintains for such purpose pursuant to Section 5.03, the Fiscal Agent shall execute and deliver, or cause the Borrower to execute and deliver in the name of the designated transferee or transferees, one or more new Notes of like aggregate Principal Amount. At the option of the Holder, a Note may be exchanged for Notes of like aggregate Principal Amount, upon surrender at the office which the Fiscal Agent maintains for such purpose pursuant to Section 5.03. Every Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer or authorization for exchange in form satisfactory to the Fiscal Agent duly executed by, the Holder thereof or by its attorney duly authorized in writing. Exchanges and transfers will be without charge to the Person presenting the Note for transfer or exchange, except that the Fiscal Agent may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of a Note. All Notes surrendered for registration of transfer or exchange shall be cancelled by the Fiscal Agent in accordance with its standard procedures. All such cancelled Notes shall be forwarded to the Secretary by the Fiscal Agent from time to time. SECTION 5.02. Persons Deemed Holders Prior to due .presentation of a Note for registration of transfer, the Borrower, the Secretary, the Fiscal Agent and any of their agents may treat the Person in whose name any Note is registered as the -19- holder of such Note for the purpose of receiving payments pursuant to Section 4.01 hereof and for all other purposes whatsoever. Neither the Borrower, the Secretary, the Fiscal Agent nor any of their agents shall be affected by notice to the contrary. SECTION 5.03. Maintenance of Office or Agency The Fiscal Agent shall maintain a designated office or agency where Notes may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Borrower or the Fiscal Agent in respect of the Notes and this Agreement may be served. The Fiscal Agent designates its Corporate Trust Office as such office for said purposes. ARTICLE VI RIGHTS AND DUTIES OF THE BORROWER SECTION 6.01. Compensation and Indemnification of the Fiscal Agent The Borrower agrees to pay the Fiscal Agent an initial fee as reasonable compensation for all services to be rendered by it hereunder and as payment or reimbursement for all reasonable expenses and disbursements to be incurred by the Fiscal Agent in connection with the Agreement. The Fiscal Agent shall deposit such fee in a Fee Account separate and apart from all other accounts of the Borrower and the Fiscal Agent. On an annual basis, commencing on the date the Notes are delivered initially to the Holders, the Fiscal Agent will deduct from each X3110 Fee Account the compensation due hereunder for such year. The Borrower hereby acknowledges that upon its failure to pay the Fiscal Agent the compensation due hereunder, the Secretary may pay such fee on behalf of such Borrower, which payment may be satisfied out of grants pledged by the Borrower to the Secretary as security for repayment of the Notes pursuant to the Contract. The Borrower also covenants to indemnify the Fiscal Agent against, and to defend and to hold it harmless from any liabilities and any related out -of- pocket expenses (including, without limitation, fees and expenses of legal counsel) which it may incur in connection with this Agreement or the Notes, other than any liabilities and expenses arising out of the Fiscal Agent's bad faith, willful misconduct or gross negligence. The obligations of the Borrower to compensate and indemnify the Fiscal Agent shall constitute indebtedness hereunder and shall survive the satisfaction and discharge of this Agreement. The Borrowers will pay all out -of- pocket expenses, including fees and disbursements of counsel incurred by the Fiscal Agent in the performance of its duties hereunder, provided, however, that (a) the Fiscal Agent shall in no event acquire any lien upon any Notes administered pursuant to this Agreement, or any moneys received with respect thereto, or any claim against the Holders of the Notes, by reason of the failure of the Borrower to pay any of such charges or expenses, and (b) the Borrower shall not be -21- required to pay any out -of- pocket expenses incurred by the Fiscal Agent to the extent that the expenses are chargeable under Section 5.01 hereof to persons requesting the transfer or exchange of Notes. ARTICLE VII RIGHTS AND DUTIES OF THE FISCAL AGENT SECTION 7.01. Duties of the Fiscal Agent The Fiscal Agent undertakes to perform only such duties as are specifically set forth in this Agreement. With respect to each Note and the related Guarantee which are delivered to the Fiscal Agent, the Fiscal Agent shall act as paying agent and registrar for the Notes. Except upon compliance with the provisions of Sections 2.03 or 3.08, none of the Notes, their related Guarantees or any other related instruments or documents shall be delivered by the Fiscal Agent to the Holders or to the Secretary, or otherwise released from the possession of the Fiscal Agent. The Borrowers hereby appoint the Fiscal Agent to act as their agent in executing the Letter of Representations to be delivered to DTC, in substantially the form set forth in Exhibit C hereto. No provision of this Agreement shall be construed to relieve the Fiscal Agent from liability for its bad faith, willful misconduct or gross negligence; provided however that: (a) The duties and obligations of the Fiscal Agent shall be determined solely by the express provisions of this -22- Agreement, the Fiscal Agent shall not be liable except for gross negligence or willful misconduct in the performance of such duties and obligations as are specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent and, in the absence of bad faith on the part of the Fiscal Agent, the Fiscal Agent may conclusively rely, as to the truth and accuracy of the statements and contents and the correctness of the opinions expressed therein, upon any certificates, opinions, resolutions, statements, reports, documents, orders or other instruments furnished to the Fiscal Agent and conforming to the requirements of this Agreement; and (b) The Fiscal Agent shall not be personally liable for an error of judgment made in good faith by an Authorized Officer or Authorized Officers of the Fiscal Agent, unless it shall be proved that the Fiscal Agent was grossly negligent in ascertaining the pertinent facts. SECTION 7.02. Certain Matters Affecting the Fiscal Agent Except as otherwise provided in Section 7.01: (a) The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any resolution, certificate of an Authorized Official, certificate of auditors or any other certificate, statement, instrument, opinion (including an oral opinion or advice of counsel), report, notice, request, consent, order, appraisal, bond or -23- other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; (b) The Fiscal Agent may consult with counsel and any opinion of such counsel, whether oral or written, shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such opinion of counsel, and the Fiscal Agent shall not be required to take any action in violation of law or any action which would, in its reasonable determination, expose it to any fine or penalty imposed by law; (c) The Fiscal Agent shall not be personally liable for any action taken, suffered or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement; (d) The Fiscal Agent may exercise any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Fiscal Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney or securities depository appointed with due care by it; and (e) The Fiscal Agent shall not be obligated to make any investigation into the facts or matters stated in any reso- lution, certificate, statement, instrument, opinion, report, notice, consent, order, approval or other paper or document. -24- SECTION 7.03. Fiscal Agent Not Liable for Notes The recitals contained herein and in the Notes shall be taken as statements of the Borrower, and the Fiscal Agent assumes no responsibility for the correctness of the same. The Fiscal Agent makes no representations as to the validity or sufficiency of this Agreement or of any Note, Guarantee or related document and shall not be held liable for any defect in any portion thereof. The Fiscal Agent shall not be accountable for the use or application by the Secretary or the Borrower of any of the Notes or of the proceeds of such Notes. SECTION 7.04. Eligibility Requirements for Fiscal Agent The Fiscal Agent hereunder shall at all times be a corporation having its principal office in the State of New York and organized and doing business under the laws of such State of the United States of America, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by Federal or State authority. If such corporation publishes reports of condition at least annually, pursuant to law or the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and the surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Fiscal Agent shall cease to be eligible in accordance with the -25- provisions of this Section, the Fiscal Agent shall resign immediately in the manner and with the effect specified in Section 7.05. SECTION 7.05. Resignation and Removal of the Fiscal Agent Subject to the further provisions of this Section 7.05, the Fiscal Agent may resign at any time and be discharged from its duties as the Fiscal Agent hereunder by giving at least 60 days' prior written notice of such resignation to the Secretary and the Borrower and specifying the date on which such resignation is to take effect, and the Fiscal Agent may be removed by the Secretary as the Fiscal Agent at any time, with or without cause, by giving at least 5 Business Days' prior written notice of such removal delivered to the Fiscal Agent and specifying the date on which removal is to take effect. Upon any such resignation or removal, pursuant to the terms of the Borrower's Contract, the Secretary may, without other formality than appointment and designation in writing (a copy of which written instrument shall be promptly provided to the resigning or removed Fiscal Agent), appoint a successor fiscal agent, provided that such successor fiscal agent shall be eligible under the provisions of Section 7.04. Any successor fiscal agent appointed as provided herein shall execute, acknowledge and deliver to the Secretary, the Borrower and to its predecessor fiscal agent an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the precedessor fiscal agent shall WI-M become effective and such successor fiscal agent, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as fiscal agent herein. Upon acceptance by such successor fiscal agent of its appointment hereunder or in the absence of such an appointment upon the effective date of the resignation or removal as specified in the applicable notice referred to above (or, if the notice does not so specify, the expiration of the 60 or 5 day period referred to above), the Fiscal Agent shall deliver all of the Notes and their related Guarantees (if then held by the Fiscal Agent) and other property relating to the Notes then in its custody to such successor fiscal agent or the Secretary, as the case may be, against receipt by such successor or the Secretary, as the case may be, including without limitation, by transmitting to such successor fiscal agent or the Secretary, as the case may be, for deposit in successor accounts, established by the successor fiscal agent or the Secretary, as the case may be, all funds in or otherwise to the credit of the Note Accounts, the Fee Account and the Defeasance Accounts. The Fiscal Agent shall otherwise release, assign and deliver to such successor fiscal agent or the Secretary, as the case may be, all other property relating to the Notes in its possession, and effect a transfer of such property in such manner and pursuant to such instruments as the Secretary shall reasonably request. The -27- Fiscal Agent shall likewise deliver at such time to such successor fiscal agent or the Secretary, as the case may be, all of the Note Registers and all related records and documents in its possession. The Fiscal Agent shall not be discharged from its duties or obligations hereunder following its resignation or removal until such property has been delivered to such successor or the Secretary, as the case may be, and transferred, as provided above. SECTION 7.06. Merger or Consolidation of Fiscal Agent Any corporation into which the Fiscal Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Fiscal Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Fiscal Agent, shall be the successor of the Fiscal Agent hereunder, provided such corporation shall be eligible under the provisions of Section 7.04, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. SECTION 7.07. Fiscal Agent May Own Notes The Fiscal Agent in its individual or any other capacity may become owner or pledgee of Notes with the same rights it would have if it were not the Fiscal Agent. own SECTION 7.08. Fidelity Bond or Insurance So long as any Note is administered hereunder, the Fiscal Agent shall at all times maintain a fidelity bond or such insurance coverage in respect of its fiscal agent capacity hereunder as it ordinarily maintains when acting in such capacity. ARTICLE VIII TERMINATION SECTION 8.01. Termination The respective obligations and responsibilities of the Borrowers and the Fiscal Agent created hereby with respect to any Note administered by the Fiscal Agent (other than the obligations of the Borrowers and the Fiscal Agent to make payments to Holders as hereafter set forth) shall terminate upon the final payment of the last Note administered by the Fiscal Agent at its Maturity Date. No notice need be given and final payment will be made from the corresponding Note Account on the next following Payment Date upon presentment and surrender of the Note at the office maintained pursuant to Section 5.03. With respect to each Borrower, upon the final payment of principal of and interest on each Note, for which a separate Note Account has been established pursuant to Section 3.04, the Fiscal Agent shall notify the Secretary of any moneys deposited in such Note Account which have remained unclaimed by any Holder entitled to receive the same for at least two years after the date upon which such final payment may, and upon receipt of shall, pay over to the S deposited and the Holder Secretary for payment of of the Fiscal Agent with thereupon cease. should have been made. The Fiscal Agent a written request of the Secretary ecretary the unclaimed amount so shall thereafter look only to the such unclaimed amount, and all liability respect to such unclaimed amount shall ARTICLE IX MISCELLANEOUS PROVISIONS SECTION 9.01. Amendment Except as otherwise provided in this Section 9.01, this Agreement may not be amended without the prior written consent of the Secretary and of all other Borrowers; provided however that no such amendment shall reduce in any manner the amount of, or delay the timing of, payments received by the Fiscal Agent, including Guarantee Payments, which are required to be distributed on any Note without the consent of the Holder of such Note. Subject to the foregoing proviso, with the prior written consent of the Secretary, the Borrower and the Fiscal Agent may from time to time agree to amend any provision of this Agreement so long as such amendment relates only to the Borrower and the Fiscal Agent and shall not adversely affect the rights of the other Borrowers that are parties hereto. No amendment, modification, termination or waiver of any provision of this Agreement, nor any consent to any departure by any party -30- from any provision hereof binding upon such party, shall be effective unless the same shall be in writing and signed by the parties hereto, the Secretary and if applicable, all other Borrowers. No such amendments, modification, waiver or consent shall adversely affect the rights of the Holder or Holders of any Note issued in accordance with the terms of this Agreement and outstanding at the time of such amendment, modification, waiver or consent. SECTION 9.02. Inspection of Documents by Holders The Fiscal Agent shall keep a fully executed or conformed copy of this Agreement (together with all amendments, supplements, waivers and consents hereto) on file at its Corporate Trust Office, and shall permit reasonable inspection (and limited copying) to be made of this Agreement during normal business hours by any Holder or by its designee, at such Person's expense, provided that the Person purporting to be such Holder or designee establishes his identity and capacity to the Fiscal Agent's satisfaction. SECTION 9.03. Governing Law This Agreement and the Notes and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws. -31- SECTION 9.04. Notices All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given when and if personally delivered at or mailed by registered mail, postage prepaid, (a) in the case of the Borrower, to the address furnished on the signature pages attached hereto, (b) in the case of the Secretary, to the United States Department of Housing and Urban Development, 451 Seventh Street, S.W., Washington, D.C. 20410, Attention: Director, Financial Management Division, Office of the Assistant Secretary for Community Planning and Development, or such other address as may hereafter be furnished to the Fiscal Agent in writing by the Secretary, and (c) in the case of the Fiscal Agent, to P.O. Box 318, Church Street Station, New York, New York 10015, Attention: Public Debt Services, or such other address as may hereafter be furnished to the Borrower and to the Secretary, in writing, by the Fiscal Agent. The Fiscal Agent is entitled to a copy of any notice given to the Borrower or to the Secretary by any Holder. Any notice required or permitted to be mailed to a Holder shall be given by first class mail, postage prepaid, at the address of such Holder as shown in the Note Register. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. SECTION 9.05. Severability of Provisions If any one or more of the covenants, agreements, provisions, or terms of -32- this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions, or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Notes or the rights of the Holders thereof. SECTION 9.06. Counterparts This Agreement may be executed in several counterparts, each of which shall be an original and all of which together constitute but one and the same instrument. IN WITNESS WHEREOF, the Borrowers and the Fiscal Agent have duly approved the terms and provisions hereof by causing the names of their respective officers duly authorized to be executed on counterpart agreements in respect of each series of Notes. -33- EXHIBIT A [ FORM OF AUTHORIZATION ORDER Bankers Trust Company, as Fiscal Agent under the Fiscal Agency Agreement referred to below 4 Albany Street, 4th Floor New York, New York 10015 Attention: Public Debt Services Dear Sirs: The following information is being furnished to you pursuant to (i) Section 2.03 of the Fiscal Agency Agreement dated as of June 5, 1987 providing for the issue of U.S. Government Guaranteed Notes, Series , and (ii) Section of the Underwriting Agreement dated as of June , 1987. Capitalized terms used herein and not otherwise defined herein have the same meanings as in the Fiscal Agency Agreement. ARTICLE I. Information regarding Notes to be registered in the name of and delivered to the Holders: (a) Note series: (b) Name of issue: (c) Interest Payment Dates: Semi - annual interest payments on February 1 and August 1, commencing [Insert first interest Payment Date] to the Maturity Date indicated below. (d) MATURITY DATE Interest DM4-e [insert August or February 11, 198_ % 198 % 199 % 199 % 199 % 199 % A -1 (e) SERIAL MATURITIES (000's omitted) Total BORROWER 198 198 199 199 199 199 199 Amount (f) [State whether the Notes and their related Guarantees are to be physically held by the Fiscal Agent or transferred to The Depository Trust Company and the date such delivery or transfer is to occur.] (g) [State whether the Notes are subject to redemption or acceleration prior to their Maturity Dates indicated above and if so, the terms and conditions relating to any redemption or acceleration]. ARTICLE II. [Instructions to the Fiscal Agent regarding application of proceeds of the Notes, and of funds received by the Secretary from the Borrower to be deposited with the Fiscal Agent at the time of delivery of the Notes.] Very truly yours, SECRETARY OF HOUSING AND URBAN DEVELOPMENT By: Title: [ A -1 EXHIBIT B June , 1987 Bankers Trust Company, as Fiscal Agent under the Fiscal Agency Agreement referred to below 4 Albany Street New York, New York 10015 Attention: Helen D. Levine, Public Debt Service Re: $00,000,000 U.S. Government Guaranteed Notes, Series 1987 -A, Guaranteed by the Secretary of Housing and Urban Development Dear Ms. Levine: The Depository Trust Company ( "DTC ") has agreed to act as securities depository for the above - referenced Notes and their related guarantees. Pursuant to the terms and provisions of the Series 1987 -A Fiscal Agency Agreement (the "Fiscal Agency Agreement "),* dated as of June 5, 1987, entered into by and among the Borrowers and Bankers Trust Company, a New York banking corporation, as Fiscal Agent, the ownership of the Notes will be registered by the Fiscal Agent in the name of Cede & Co., as nominee for DTC. DTC hereby acknowledges that so long as DTC or its nominee is the Holder of the Notes, the Guarantees run directly to DTC. In recognition thereof, DTC hereby appoints the Fiscal Agent to serve as DTC's agent solely for the purpose of enforcing any Guarantee while DTC or its nominee is the Holder of any corresponding Note. THE DEPOSITORY TRUST COMPANY By: Title: * Please be advised that as used in this letter, any capitalized terms not defined herein shall have the meanings ascribed to them in the Letter of Representations furnished by the Fiscal Agent at the request of DTC. B -1 EXHIBIT C [to be provided - Form of Standard Letter of Representations requested by DTC, to be signed by the Fiscal Agent, in its individual capacity and as agent of the Borrowers.] C -1