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The Coxae im;>osew cnttain requirements as to the cltualificat.ie,n of potential mortgagors for Series A Mortgage Danes to be acquire,i by the Servicer under the Program and the purchase prier of th residences which may become subject to a Series A Mortqage Loan. These requirements restrict the ability of potential mortgagors and residential units to qualify for Series A Mortgage Loans and thereby may materially impair the Trustee's ability to purchase Series A Mortgage Certificates backed by Series A Mortgage Loans. The requirements are subject to change and may become more restrictive, thereby resulting in a decrease in the number of potential mortgagors or residential units eligible for inclusion in the Program. The Code requires a payment to the United States from certain mortgagors with respect to Series A Mortgage Loans as described under "THE PROGRAM -- Federal Tax Law Requirements -- Recapture Provision" herein. The Authority is unable to predict what effect, if any, this provision might have on the origination and prepayment of Series A Mortgage Loans financed with the proceeds of the Series A Bonds. See "THE PROGRAM -- Federal Tax Law Requirements -- RSrCaUture proyi:;=.Or1" herein. Funding of FHA Insurance and GNMA Commitments The funding of operations of certain federal agencies which provide services in connection with the Program is subject to the approval of the U.S. Congress. The funding of operations of FHA, including the delivery of mortgage insurance with respect to FHA - Insured mortgage loans, has been approved by the U.S. Congress through September 30, 1996 only. If an extension of the funding for FHA is not approved prior to September 30, 1996, no FHA insurance will be available for the origination of Mortgage Loans originated under the Program after that dare. Failure to extend funding for FHA could result in the purchase of fewer GNMA Certificates by the Trustee. In addition, the funding of the operation of GNMA, including the issuance of commitments for GNMA Certificates and the delivery of GNMA Guaranties in connection with such GNM.A Certificates, has been authorized through March 22, 1996 only. No extension beyond March 22, 1996 of authority for the. issuance of GNKA. cotrattftments has been authorized as of the date hereof. The inability of FHA to deliver mortgage insurance or the inability of the Servicer to obtain nefficient GN14A ccnn„itmants for the Program could result in a higher likelihood of a Bond bei redeemed pursuant to a npeci.4l mindatoty redemption as described under the heading *TKE !-.HRII-.S A BONDS Redemption Provisions - Cyrria7 l�tarri.etut o P.--fi-.-tit ion," h+^t ir,. Consequently, it can not b* guaranteed that the Sstvicer will have sufficient GGA cossd tmaOte to issue and deliver ANNA Certifiraten in amounts equal to snoante on dsposit in the ,Acquisition Fund fr.t such purchase. it is not Possible 1" pt -1;'t vI9t =-ifr.t, it .ary, tutur"• trsdgetary action may have or, th- atcility of the 4+tvicer t:> obtain (AM r.mt[nitnr-r.tn ,.t i...,r,_ �:NVA --T it t,_,..