1. MIDA Bond Sisters of Presentation

SECTION 7.07. TAX-ExEMPT STATtTS OF BONDS. It is the intention of the parties hereto that the interest paid on the Bonds will not be included in the gross income of the Bondholders by reason of Section 103(a) of the Internal Revenue Code. In order to confirm and CatTY out such intention the Corporation shall (i) provide such certificates, opinions of counsel, and other evidence as may be necessary or requested by the Issuer or the Lender to establish the exemption of the Bonds under Section 145 of the Code and the absence of arbitrage expectation under Section 148 of the Code. and (ii) file such information and statements, acting alone or with the Issuer, with the Internal Revenue Service. SECTION 7.08. No WARRANT\' OF CONDITION OR SnTABILlT\' BY THE ISSUER. The Corporation recognizes that the plans and specifications for the Project have been prepared to its order. and since the Project is being renovated and equipped by contractors and suppliers selected by the Corporation, the Issuer has not made an inspection of the Facilities or of any fixture or other item constituting a portion thereof, and the Issuer makes no warranty or representation, express or implied or otherwise. with respect to the same or the location. use. description, design. merchantability. fitness for use for any particular purpose, condition, or durability thereof, or as to the quality of the material or workmanship therein, or as to the title thereto or ownership thereof or otherwise. it being agreed that the Issuer bears none of the risks incident thereto, in the event of any defect or item constituting a portion thereof: whether patent or latent, the Issuer shall have no responsibility or liability with respect thereto. The provisions of this Section 7.08 have been negotiated and are intended to be a complete exclusion and negation of any warranties or representations by the Issuer, express or implied, with respect to the Facilities or any fixture or other item constituting a portion thereof. whether arising pursuant to the Uniform Commercial Code or another law now or hereafter in effect or otherwise. SECTION 7.09. OPERATION OF FACILITIES. The Corporation will operate or cause the Facilities to be maintained as multifamily housing facilities and will not change the use of the Facilities without the prior written consent ofthe Lender and the Issuer and a written opinion from Bond Counsel that such change in use \vill not affect the tax-exempt status of the Bonds. The Corporation will use its best efforts to fix, charge. and collect, or cause to be fixed. charged. and collected, subject to applicable requirements or restrictions imposed by law, such rents. fees, and charges for the use of and for the services furnished or to be furnished by the Facilities as, together with all other receipts and revenues ofthe Corporation will be sufficient in each Fiscal Year to produce net revenues equal to or in excess of one hundred percent (100%) of the principal and interest payable on the Bonds in such Fiscal Year (except to the extent such principal and interest payments are expected to be paid with other funds held by the Lender for such purpose). SECTION 7.10. CORPORATION'S ASSllRANCE OF TAX EXEMPTION. The Corporation represents that it understands that it is intended that interest on the Bonds not be included within the gross income of the owners thereof for federal income tax purposes. In furtherance thereof: the Corporation represents and covenants with the Issuer. the Lender and all Bondholders that it will take all actions (and refrain from taking any actions) which are necessary in order for interest on the Bonds to be excluded from gross income of the owners thereof for federal income taxation and, in addition, comply with the applicable provisions of the Code as follows: 7-3