1. MIDA Bond Sisters of Presentation

(a) the Corporation will fulfill all conditions specified in Section 145 of the Code: (b) the Corporation or YWCA Cass Clay will not use (or permit to be used) the Facilities or use or invest (or permit to be used or invested) the proceeds of the Bonds or any other sums treated as "bond proceeds" under Section 148 of the Code including "investment proceeds," "invested sinking funds" and "replacement proceeds," in such a manner as to cause the Bonds to be classified "arbitrage bonds" under Section 148(a) of the Code or "federally guaranteed obligations" within the meaning of Section I 49(b ) of the Code; (c) substantially all (95%) ofthc net proceeds of the Bonds will be used to pay Qualified Project Costs; (d) the Corporation will. at all times during the term ofthis Loan Agreement own the Facilities as ownership is determined for federal income tax purposes and the Corporation shall remain a nonprofit corporation described in Section 501 (c)(3) ofthe Code and exempt from federal income taxes under Section 501 (a) of the Code or any predecessor or successor provisions of similar import heretofore or hereafter enacted; (e) no more than 3% of the proceeds of the Bonds will be in the aggregate be used to finance or refinance properties used or to be used in an unrelated trade or business of the Corporation within the meaning of Section 513(a) of the Code or used directly or indirectly in any trade or business carried on by an entity that is not an exempt organization under Section 501(c)(3) of the Code or a governmental unit; (f) no p0l1ion of the Bond proceeds will be used to provide any airplane, sky box, or other private luxury box. any facility primarily used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption offpremises, all within the meaning of Section 147(e) of the Code; (g) the average maturity of the Bonds does not exceed 120% of the average reasonably expected economic life of the Facilities within the meaning of Section 147(b) of the Code: (11) the Corporation shall provide the Issuer with all information required to satisfy the informational requirements set forth in Section 149(e) of the Code including the information necessary to complete IRS Form 8038; (i) in order to qualifY the Bonds and this Loan Agreement under the "program investments" provisions of Section] , ] 48-1 (b) of the Treasury Regulations. the Corporation (and any "related person" thereto) \vi II take no action the effect of which would be to disqualify this Loan Agreement as a "program investment'" under said Section 1.148-1 (b), including but not limited to entering into any arrangement. formal or informal, for the Corporation to purchase bonds or notes of the Issuer in an amount related to the amount of such series of Bonds; 7-4 "'""" ___.....~_1JiII ..~.._-^...^~- "y-'?"j._~.~t 1J ~"