1. MIDA Bond Oak Grove Lutheran School

ARTICLE 3 CONSTRUCTION AND EQUIPPING OF THE PROJECT SECTION 3.01. CONSTRUCTING AND EOUIPPING 0" PROJECf BY CORPORATION. The Corporation represents that it will: (a) construct the Project substantially in accordance with the Plans and speeifications therefor, as amended, (b) acquire the Elementary School and (c) install all necessary items of Equipment in the Facilities. The Corporation may make changes in the Project or items of Equipment at any time; provided that no changes will be made which would cause the Project not to constitute an authorized "projeet" within the meaning of the Act, or which would cause the violation of any representation or covenant made hereunder, or jeopardize the tax-exempt status of interest on the Bonds for federal income tax purposes. The work on the Project will be completed in accordance with all applicable zoning, planning and building regulations of governmental authorities having jurisdiction of the Faeilities. Contemporaneously with the delivery of this Loan Agreement, the Issuer shall assign its rights in, and pledge any moneys receivable under, this Loan Agreement (other than administrative costs and indemnity payments to be paid to the Issuer, if any) to the Lender as security for the payment of the Bonds. The Corporation hereby consents to the assignment. SECTION 3.02. P A YMENTO" COSTSOFTHE PROJECT BY CORPORATION. The Corporation agrees that it will provide promptly any and all sums of money required to acquire the Elementary School and complete the construction, equipping and installation of the Projeet to the extent not paid from the proceeds of the Bonds, including all legal, abstractors', accounting fees and expenses, administrative, printing costs and other expenses incurred and to be incurred on or before or in connection with issuance of the Bonds. The Corporation agrees to be liable and pay for all Issuance Expenses. The Corporation further agrees that in no event may Bond proceeds, together with interest thereon, in excess of two percent (2%) of the proceeds of the Bonds be used to payor reimburse for the payment ofIssuance Expenses. SECTION 3.03. DISBURSEMENTS "ROM CONSTRUCTION ACCOUNT. The proceeds of the Bonds deposited in the Construction Account shall be disbursed by the Lender in accordance with the terms of this Loan Agreement upon receipt of a certificate (substantially in the forn1 of Exhibit A attached hereto) signed by a Corporate Representative containing the following information: (a) if the Corporation seeks reimbursement for Qualified Project Costs paid by it, a statement of the amount and nature of the Qualified Project Costs and the name and address ofthe payee of each item of the Qualified Project Costs certified to have been paid by and requested to be reimbursed to the Corporation; or 3-1