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em XEROX TELECOPIER 495 • NCV. 19 87 13:16 212 986 3000+ h.. _^,.. . ..i.7: .....I _.,v N SUMMARY 01 CERTAIN PROVISIONS OF THE BANK SECURITY DOCUMENTS I. Stn"Y OF CERTAIN PROVISIONS of THE REIM03UR ZNM AGREEMENT :• 5 All of the Letters of Credit will be issued under the same Reimbursement Agreement and a default under the Reimbursement Agreement with respect to any Project or any Letter of Credit could result in the termination by the Bank of any or all of the Letters of Credit and a corresponding acceleration of the Bonds of any or all of the Issues. Certain provisions of the Reimbursement Agreement are summarised below. %hese summaries do not purport to be complete or definitive and are qualified in their entirety by reference to the full terms of the Reimbursement Agreement. Reimbursement and Other Payment■ by the Company Under the Reimbursement Agreement, the Company has agreed to reimburse the Bank for all amounts that are drawn under each Letter of Credit. Such reimbursement is required to be made on the date on which the Bank honors a draw under such Letter of Credit, except that the Company has until the earlier of the ninetieth (90th) day after such draw is honored or the expiration or termination date of the Letter of Credit to reimburse the Bank for liquidity drawn honored by the Bank to pay the purchase price of Bonds tendered pursuant to the Indenture. The Company also agrees to pay to the Bank (i) an initial and thereafter periodic fees with respect to each Letter of Credit based on the available amount of such Letter of Credit, (ii) certain increased costs incurred by the Dank in issuing or maintaining any Letter of Credit resulting from changes in applicable law or regulations, (iii) interest on Letter of Credit draws funded by the Bank until reimbursement thereof by the Company, and (iv) all other expenses of the Bank incurred in enforcing its rights under the Reimbursement Agreement. All costs and expenses incurred by the Bank in connection with the preparation and issuance of the Letters of Credit and the Reimbursement Agreement, the Mortgages, the Pledge and Security Agreement and the Guaranty Agreement are also to be paid by the Company. Pledge of Credit Facility Bonds As security for the payment of the obligations of the Company under the Reimbursement Agreement, the Company will pledge to the Bank any and all Credit Facility Bonds pursuant to the terms of the Reimbursement Agreement and the Pledge and Security Agreement dated as of December 1, 1987 (the "Pledge and Security Agreement") between the Company and the Bank. Credit Facility Bonds will be released from such pledge and delivered to the Company or on its order upon payment to the Bank of the amount of the drawing under the Letter of Credit made with respect to payment of the purchase price of such Credit Facility Bonds, plus the amount of the drawing fee related to such drawing and all interest on such drawing as provided in the Reimbursement Agreement to and through the data of such payment to the Bank. D-1