1. MIDA Bond Hospice of Red River Valley

action by the Holders ofthe requisite principal amount of Bonds, Bonds owned by or pledged to the Corporation shall be disregarded and not deemed to be Outstanding. "Permitted Investments" means the investment of moneys permitted by Section 7.1 of the Indenture. "Project" means the acquisition and equipping of a two-story, 28,000 square foot office building located on the Land. ('Project Fund" means the fund created by Section 5.5 of the Indenture. "Qualified Project Costs" means the costs and expenses of the Project, including working capital, but specifically excluding costs and expenses for portions of the Facilities to be used in the trade or business of any person other than the Corporation or a governmental unit or used for activities constituting unrelated trades or businesses of the Corporation determined by applying section 513(a) of the Code; provided, however, that (i) Issuance Expenses in excess of2% of the proceeds of the Bonds shall not be deemed to be Qualified Project Costs; and (ii) interest during the construction period, letter of credit fees and municipal bond issuance premiums which represent a transfer of credit risk shall be allocated between Qualified Project Costs and other costs and expenses to be paid from the proceeds of the Bonds. "Record Date" means the fifteenth (15th) day of the month preceding an Interest Payment Date (whether or not a Business Day). ('Repair and Replacement Fund" means the fund created by Section 5.4 of the Indenture. "Resolution" means collectively, the Resolutions of the Issuer, adopted January 2,2007, February 5,2007, and July 2,2007, authorizing the issuance of the Bonds. "State" means the State of North Dakota. "Tax-Exempt Organization" means either (i) a non-profit corporation organized under the laws of one of the states of the United States of America or the District of Columbia that is an organization 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 provision of similar import heretofore or hereafter enacted, or (ii) a governmental unit within the meaning of Section 103 of the Code. "Treasury Regulations" means all relevant regulations and proposed regulations under the Code and any successor provisions to such regulations or proposed regulations. "Trustee" means Wells Fargo Bank, National Association, Minneapolis, Minnesota, and its successors and any corporation resulting from or surviving any consolidation or merger to which it 1-5