1. MIDA Bond Hospice of Red River Valley

(a) if the Corporation seeks reimbursement for Costs paid by it, a statement of the amount and nature of the Costs and the name and address of the payee of each item of the Costs certified to have been paid by and requested to be reimbursed to the Corporation; or (b) if payment is to be made to someone other than the Corporation, a statement of the amount and nature of each item of Costs certified to be due and payable and requested to be paid to a person other than the Corporation; and ( c) a certificate for payment under paragraphs (a) or (b) ofthis Section must also contain a statement that (i) each item for which payment or reimbursement is requested is or was necessary in connection with the Project and that such item has not formed the basis for any previous payment or reimbursement from the Project Fund, and (ii) except for payment for the acquisition ofthe Project, the Corporation has received properly executed lien waivers from all contractors, subcontractors and suppliers for materials, goods and services previously paid from draws on the Project Fund. Upon receipt of the certificate the Trustee shall disburse funds from the Project Fund to the persons entitled thereto. SECTION 3.04. ENFORCEMENT OF CONTRACT AND SURETY BONDS. In the event of material default of any contractor or subcontractor under any contract made in connection with the Project, or in the event ofa material breach of warranty with respect to any materials, workmanship or performance, the Corporation will diligently pursue, either separately or in conjunction with others, such remedies of the Corporation as it deems reasonable against the contractor or subcontractor in default and against any surety on a bond securing the performance of such contract. Any amounts recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing, after deduction of expenses incurred in such recovery, shall be paid to the Trustee and, at the Corporation's option, deposited in the Project Fund, or the Bond Fund. SECTION 3.05. EST ABLISHMENT OF COMPLETION DA TE. The Completion Date shall be evidenced to the Trustee by a Certificate of Completion signed by a Corporate Representative and accepted by the Trustee stating that, except for amounts retained by the Trustee at the direction of the Corporation for any Project Costs not then due and payable or the liability for which is being contested in good faith by the Corporation: (a) the Project has been completed and all labor, services, materials and supplies used in such construction have been paid for; and (b) all other facilities necessary in connection with the Project have been constructed, acquired and installed and all costs and expenses incurred in connection therewith have been paid. 3-2