environmental concerns with
respect to the Mortgaged Property other than such matters as set forth on
Schedule D
18
hereto, and the Sponsor is not aware of any action or proceeding which is
pending or threatened by any public authority with respect to environmental
matters.
(W)
INTEREST COMPUTATION.
EACH INDENTURE WITH RESPECT TO THE RELATED
BONDS PROVIDES FOR COMPUTATION OF INTEREST ON THE BASIS OF A 360-DAY YEAR
COMPRISED OF TWELVE 30-DAY MONTHS TO THE MATURITY DATE OF THE BONDS.
EACH BOND
MORTGAGE NOTE PROVIDES FOR COMPUTATION OF INTEREST ON THE BASIS OF A 360-DAY
YEAR COMPRISED OF TWELVE 30-DAY MONTHS TO THE MATURITY DATE OF THE BOND MORTGAGE
NOTE.
(X)
BOND REQUIREMENTS.
EXCEPT AS INDICATED ON SCHEDULE D:
(I)
ALL BONDS ORIGINALLY ISSUED AS "DRAW-DOWN" BONDS HAVE BEEN
COMPLETELY DRAWN DOWN;
(II)
ALL BONDS ARE SECURED BY A RECORDED MORTGAGE OR DEED OF TRUST
GRANTED BY THE RELATED OWNER IN FAVOR OF THE RELATED BOND TRUSTEE (OR GRANTED TO
THE ISSUER AND THEN ASSIGNED TO THE RELATED BOND TRUSTEE);
(III)
ALL BONDS BEAR INTEREST AT FIXED RATE TO MATURITY OR AN EARLIER
RESET DATE (AND IN THE CASE OF ANY EARLIER RESET DATE, WILL BEAR INTEREST AT A
FIXED RATE THEREAFTER TO BE DETERMINED IN ACCORDANCE WITH THE RELATED BOND
DOCUMENTS);
(IV)
WITH RESPECT TO EACH SERIES OF BONDS, NEITHER THE ISSUER NOR THE
TRUSTEE NOR ANY OTHER THIRD PARTY MAY DIRECT OR CAUSE AN ACCELERATION OR
REDEMPTION OF THE BONDS OR THE RELATED BOND MORTGAGE LOAN OR A FORECLOSURE OF
THE LIEN OF THE RELATED BOND MORTGAGE PURSUANT TO THE TERMS OF THE RELATED BOND
DOCUMENTS OR BOND MORTGAGE DOCUMENTS BASED ON A FAILURE TO PAY THE FEES OR
EXPENSES OR ANY OTHER AMOUNTS OWED TO THE ISSUER, THE TRUSTEE OR ANY SUCH THIRD
PARTY WITHOUT THE PRIOR CONSENT OF THE BONDHOLDER REPRESENTATIVE;
(V)
NO THIRD-PARTY CREDIT FACILITY (OTHER THAN THE FREDDIE MAC CREDIT
ENHANCEMENT) OR LIQUIDITY FACILITY IS IN EFFECT WITH RESPECT TO ANY SERIES OF
BONDS;
(VI)
NO INTEREST RATE SWAP OR CAP OR OTHER INTEREST RATE HEDGE IS IN
EFFECT WITH RESPECT TO ANY SERIES OF BONDS WHICH WOULD AFFECT FREDDIE MAC'S
RECEIPT OF A FIXED RATE OF INTEREST AS SET FORTH IN THE BOND DOCUMENTS; AND
(VII)
NO FORWARD OR STANDBY BOND PURCHASE AGREEMENT IS IN EFFECT WITH
RESPECT TO ANY SERIES OF BONDS.
(Y)
INELIGIBLE BOND MORTGAGES.
THE BOND MORTGAGE AND THE BOND
MORTGAGE DOCUMENTS INCLUDE NONE OF THE FOLLOWING FEATURES, EXCEPT AS DESCRIBED
ON SCHEDULE D:
(I)
OTHER THAN WITH RESPECT TO BONDS RELATED TO NON-STABILIZED
MORTGAGED PROPERTIES, A PRINCIPAL BALANCE THAT INCLUDES CAPITALIZATION OF
INTEREST, TAXES, HAZARD INSURANCE PREMIUMS OR LATE CHARGES.
(II)
[RESERVED].
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(III)
A MORTGAGED PROPERTY IN WHICH ANY OF THE RESIDENTIAL SPACE IS
MASTER LEASED TO A SINGLE LESSEE OR IS MASTER LEASED FOR MILITARY HOUSING.
(IV)
A MORTGAGED PROPERTY MORE THAN 20 PERCENT OF WHICH IS USED FOR
STUDENT AND/OR MILITARY HOUSING.
(V)
A LENDER EQUITY PARTICIPATION FEATURE.
(VI)
[RESERVED].
(VII)
A GROUND LEASE.