1. MIDA Bond Sisters of Presentation

(n) the Corporation will incur within six months a binding obligation to expend an amount at least equal to five percent (5%) of the net sale proceeds of the Bonds on the Project; the Corporation will proceed with due diligence to acquire and renovate the Project; and the Corporation reasonably expects at least eighty-five percent (85%) of the proceeds of the Bonds to be spent for costs of the Facilities within three years from the date thereof; (0) the Corporation will maintain its status as an organization described in Section 501 (c )(3) of the Code and its exemption from federal income taxation under Section 501 (a) of the Code; (p) the Corporation will not otherwise use Bond proceeds, including earnings thereon. or take, or permit or cause to be taken, any action that \vould adversely affect the exemption from federal income taxation ofthe interest on the Bonds, nor otherwise omit to take or cause to be taken any action necessary to maintain such tax-exempt status; and, if it should take or permit, or omit to take or cause to be taken, as appropriate, any such action, the Corporation shall take all lawful actions necessary to rescind or correct such actions or omissions promptly upon having knowledge thereof. SECTION 7.11. REDEMPTION OF BONDS. The Issuer, at the request at any time of the Corporation and if the Bonds are then callable, shall forthwith take all steps that may be necessary under the applicable redemption provisions of the Resolution to effect redemption of all or part of the then Outstanding Bonds, as may be specified by the Corporation, on the earliest redemption date on which such redemption may be made under such applicable provisions, provided that the Corporation shall have made available funds in adequate amount therefor or shall have made arrangements satisfactory to the Lender therefor. SECTION 7.12. To OBSERVE LA "'S, ORDINANCES AND REGllLA TIONS. The Corporation will observe all applicable laws, regulations, ordinances and orders of the United States, State of North Dakota and agencies and political subdivisions thereof and each department or agency thereot: applicable to the Corporation, its business and prope11y. The Corporation shall have the right to contest by appropriate procedures the adoption, validity or applicability of any laws, regulations, ordinances and orders referred to in this Section. SECTION 7.13. RECORDING AND FILING FEES. The Corporation shall pay all recording, filing and registration taxes and fees, together with all expenses incidental to the preparation, execution, acknowledgment and filing of any notice pursuant to the Uniform Commercial Code and of any instrument offurthcr assurance, including any filing or instrument required of the Issuer, and all taxes. duties imposts, assessments and charges lav,:fully imposed upon the Bonds or upon the Resolution or this Loan Agreement. SECTION 7.14. FINANCIAL COVENANTS. The Corporation covenants and agrees that so long as the Bonds are Outstanding, it shall maintain unencumbered and unrestricted investment assets having a book value of not less than 115% of the outstanding principal amount of the Bonds, determined in accordance with generally accepted accounting principles. 7-6