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e r WHEREAS, the acquisition, construction and equipping of such qualified residential rental project in cooperation with the County complies with and will further the purposes for which FIs FC was created; and WHEREAS, FHFC has determined to allocate certain of the private activity bond limitation available to it to the particular qualified residential rental project known as the The Palms at Vero Beach Apartments, which amount is not sufficient to fully finance the acquisition, construction and equipping of such project, and WHEREAS, the County has likewise determined to assist in the financing of such project, so long as the financing of the full project is undertaken; and WHEREAS, the Countv and FHFC have ascertained that -the most efficient and cost effective method for providing for the allocation of the respective amounts of private activity bond limit and for issuing the bonds allocable thereto is for FHFC to issue its bonds utilizing the private activity bond limit contributed by it and the private activity bond limit contributed by the County for and on behalf of the County; and WHEREAS, the County and FHFC wish by this Agreement to provide for the issuance by FHFC of its obligations by and on behalf of the County in the manner provided herein in order to further the purposes stated herein; NOW, THEREFORE, in consideration of the mutual covenants of this Agreement, the County and FHFC agree as follows: SECTION 1. County Private Activity Allocation. The parties hereby agree that the qualified private activity bonds related to the private activity bond limit contributed by the County shall be issued by FHFC in the same manner as are the FHFC private activity bonds for such project. The provisions of all such bonds relating to payment, security, refmancing and all other customary financial terms shall be the same without regard to the source of the private activity bond limit. SECTION 2. All Necessary Action. The parties hereto agree that they will, individually or jointly, take all action within their respective powers, necessary, desirable or required by the Division in order to preserve the private activity bond limit for use in financing the project and to assure the exemption of interest on the bonds from Federal income taxation. SECTION 3. Reversion of Private Activity Bond Limit. In the event that the financing of the project does not proceed for reasons that are beyond the control of the County and the developer of the project, The Palms at Vero Beach Limited Partnership (the "Developer), then FHFC agrees that this Agreement will terminate on the day which is no more than 85 days after the County receives a confirmation from the Division of Bond Finance for the allocation as contemplated herein and the private activity bond limit shall, without any further action on the part of the County or the Developer, revert to the control and use of the County. FHFC agrees to take all action necessary or desirable in giving effect to this provision so as to preserve the private activity bond limit previously allocated to the County for APRIL 10, 2001 Page 2 of 5 -53-