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Home My WebLink About1995-152• WHEREAS, Chapter 159, Part IV, Florida Statutes (the "Act") authortzed 4"o counties to create housing firuutce authorities to exercise powers of the Act within cn their boundaries or outside their boundaries with the consent of the governing body of Z the territory outside their area of operation; and RESOLUTION NO. cr , ' A RESOLUTION OF THE BOARD OF COUNTY c - COMMISSIONERS OF IPfDIAN RIVER COUNTY. FLORIDA. AUTHORIZING THE ESCAMBiA COUNTY i HOUSING FINANCE AUTHORITY TO OPERATE WITHIN THE BOUNDARIES OF INDIAN RIVER COUNTY; AUTHORIZING THE BOARD TO ENTZR tl:'PO a AGREEMENTS WITS TRE ESCA.MAIA COUN'T'Y HOUSING `D FINANCE AUTHORITY AND TO EXECUTE AND D91"91t r� CERTAIN DOCUMENTS AND INSTRUMENi8 U4 •rt CONNEC'T'ION THEREVTTH; APPROVING A FORM OF INTERLOCAL AGREEMENT; APPROVING TIM ISSUANCE BY THE ESCAM131A COUNTY HOUSING FINANCE AUTHORITY OF NOT EXCEEDING W.000,000 SINGLE FAMMT MORTGAGE REVENUE BONDS. SERIES 19% (MULTI -COUNTY PROGRAM). PURSUANT TO SECTION 147(T) OF THE INTERNAL REVENUE CODE OF 1988. AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. CD WHEREAS, Chapter 159, Part IV, Florida Statutes (the "Act") authortzed 4"o counties to create housing firuutce authorities to exercise powers of the Act within cn their boundaries or outside their boundaries with the consent of the governing body of Z the territory outside their area of operation; and WHEREAS. the Board of County Commissioners of Fscarnbia County. Florida. cr , on May 29. 1980, adopted Ordinance No. 80-12. by which it created the Escambia c County Housing Finance Authority (the "Authority") and authorued the Authority to exercise all powers under the Act: and WHEREAS, there is no housing finance authority currently operating in Indian River County; and WHEREAS, pursuant to the Act the lloard of County Conunissioners of Indian Wver County. Florida, has found a shortage of affordable housing and capital for Investrncnt therein and a need for a housing finance authority to function in Indian River County; and WHEREAS, it is not practicable at this time under eauting Florida and federal laws ;,nd TcKulalions for a single local agency to issue its bands for the purpose a( !mp)rmenting a ;Angle family housing program. although the shortage of such su>ge faml)v housing and capital for investment therein is contfnutng in irk RMS County: and wKZRF_A8, ti,e Authority has by resotuUon duly adapted on July e. 19M Ube •r-ac,tmbia 14molutioll') autbortmd the tasuarree of not cwDwdft WMOMOW SO& CD Famity MmI&W Wv raise Bonds. Series MO p nqr PfQdFm l Ow 'Bim&'t %D and has indloamd to tltr Board of County of U>tdtan Rltrer Comm as Ittiw Countr Amnrs rt■�► waltrmpmes to worse its pourers in bmtkan to s�tet�e hou" by At1 d We OMM d C=W • ttmeetrj as the pm m prvrd Corea+dSaictrWm "t it clMy, mW (� t mums" tavam 4476 d dw iri muM `auric Caft d lN& am MWOOd tt tPf P41 ! i r I rqdwmd it as do 10adirl atqp0aa PPdft 40PW4d d e0r • activity bonds by an appiicat�le elected repre�entativc or gp�tital unit followma a public hearing and the Board of County Commissioners a( Indian Rwer County. Florida (the ' Board'1. constitutes an applicable elected reprtsentatfte or $pveemmental unit: and WHEREAS, pursuant to Section 147M of the Code a public hearing( was scheduled before the bard for ilor o i, 'r `) . 199 `), and notice of such hearing was, given in the form required by the Code by publication more than 14 days prior to Such hearing: and WHEREAS, the Board has on D e c: e r i b e r 5 199'- , held the public hearing and provided at such hearing reasonable opportunity for all interested individuaLS to express their vIm-s, both orally and in writing. on the issuance of the Bonds: and W'HERF.AS, the Board diligently and conscientiously considered all comments and concerns expressed by such individuals: and WHEREAS, the Board desires to empress its approval of the action to be taken pursuant to the Escambia Resolution and as required by Section 147(n of the Cocle: NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA: Section 1. Because of the continuing shor'age of affordable single family housing and capital for investment therein in Indian River County and the continuing impediments to a bond issue to alleviate such shortages as to single family housing. it is hereby determined that the Board of County Commissioners of Indian River County consents to the Authority exercising its powers to issue the Bonds Arid to implement a program from a portion of the proceeds of the Bonds to finance single family housing within the stahulory boundaries of Indian River County, provided, that the Authority and. Indian River County bust enter into a written agreement setting forth the powers. duties and limitation_ti of the Authority as they pertain to the use of said bond proceeds within Indian River County and payment of the issuance costs for such Bonds. Section 2. In furtherance of the purposes set forth in Section I hereof the Chairman or Vice-Chairnian and Clerk or Deputy Clerk of the Board of County Commissioners of Indian River County are hereby authortied to execute such consents. Intergovernmental agreements, applicaUons or other documents as shag be required to Implement such sirtivje family housing program and to provide for puri of Indian River county's proportionate shore of costs of hOuaner ol suet Bonds, all as shall for approved by courLsei to IndLita t;twr County. seetton A. The Interiocal Amt. in substangfift the form anachrd hwrlrto ** t i=ibit "A"_ mod made a Qat haat ih@nM= hHhAP fm` CmWIF and thr A4 dA lty Is hctc2tr Thr aSms if h1dftP WwW teunzY ww- h"riwY audunized to eritri into the Intesiocftl AiiOMMOU ad berttalt Of bubw F4"'j C Lmniy. with such dtanom not bwonswou herewith a• tide adkNM OwcuUM Sww Mf approve, suds aaautlan and ddP ry to be oandtawe 4w%knC6 d aunt appromL ebe approprsatt ems of OWMM lbtiwr Omwo am bwvby hadwr to ®cur WW ddlrr SM& Whw daottrrrtta and tr wwumsaiits a =W be sworn ry to tl■�irrt! aw til todassl NOWL usbeut tla>ideNN& fir r tin mora e 0� stirs affwun rr ptruart r ckww tit !bt N. (hating A4flnta, tier dw p Pwa M ttws IN die bewb al A/600ar K M. — 13, ,. t .b- . Rise; 4" O r O O N deedon a. The Hoard hereby approves. within the seining of Section 147(f) of the code. the issuance by the Authority of not awreding) lft0.000.000 Su*k Family Mortgage Revenue Bonds. Semen 1996 (Multi -county Program). and such other action to be taken pursuant to the F.scambia Resolution. 8eedon 5. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are. to the extent of such conflict. hereby superseded and repealed. Section 8. Adoption of this Resolution does not authorize or corrunit the expenditure of any funds of Indian River county to pay the costs of issuance of such Bonds. s s at 0 w 0 M . is It a. . 18., 1..I, .I... t+ •l IN wrrmwss WWXRROF, the imril" to this Agreement have caused their names to be affixed hcrrto by the proper officers lherrof as of the day of RACAMBIA COUNTY HOUNNO FTNANCR AIrMOPJW AT -Mf, Chairamn Se(+ctary INDIAN R COUN7. FLOREDA h' ATIFST: j (SEAL) ... ,. , i . �. .. -.— 4 7- TF.FRA HEARING SCRIPT The Board of County Commissioners of I n d i a n R i v f, r County, Florida, is Now opening a public hearing on Revolution No.'1z:15? A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY TO OPERATE WITHIN THE BOUNDARIES OF INDIAN RIVER COUNTY; AUTHORIZING THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, TO ENTER INTO AGREEMENTS WITH THE ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY; APPROVING A FORM OF INTERLOCAL AGREEMENT; APPROVING THE ISSUANCE BY THE ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY OF NOT EXCEEDING S &a onn nno SINGLE FAMILY MORTGAGE REVENUE BONDS, SERIES 1995, PURSUANT TO SECTION 147 (Q OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND PROVIDING AN EFFECTIVE DATE. Is there any member of the general public that would like to be heard on this matter? 1 here lking iio t unhcr comments on Resolution Nd) L- I ill would ask for a motion that the Public Hering be closed. Hn-.ing closed the Public flexing, 1 w<wld rtriw ask if there is a nation to approve Resohnion No. `3" - 1 � 2 :: *11i•w yP*r+W�.r Fi+�1•A Il ,rH�. I•. !.•�- r O all a O V O NOTICE OF PUBLIC "EARNK; For the purpose of Section 147(f) of the Internal Revenue Code of 1986, as amended, notice is hereby given that the Board of County Cottmtissioner% of Ln d i a n Rive r County, Florida, will conduct a public hearing at their regularly scheduled meeting on D eS�"1 i P L 5. 1 9, at 9 • (10 a ..m. in the County Commissioners meeting toom, located at 1840 25th St. Vern Beach _, Florida, -12 9 0 to consider the approval of the issuance by the F.scambia County housing Finance Authority, on behalf of I n d i a n R i v e rCounty and other participating counties, of not exceeding 560,000,000 Single Family Mortgage Revenue Bonds. The proceeds of such bonds will be used to finance the purchase of single family residences to be occupied primarily by first-time home buyers of moderate, middle or lesser income within I n d. R i v e rCounty and various other counties in the State of Florida. The bonds will not constitute a debt of the State of Florida, Indian River County, or other participating counties or Housing Finance Authorities, but will be payable solely from payments made from the revenues generated from the housing program. All persons aro advised that, if they decide to appeal any decision made at this meeting, they will need a record of the proceedings, and for such purpose, they may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. All in steel person are invitees to present their comments at ime and place tet above. IA NNETH R. MACH1, f4f.1RMAh •1 9XIdbit -A- FORM OF (NTERLOC.AL AGRFEMFf YT THIS AGREEMENT made and entered into this5 _ day of n 0 r F' 1't.^ T99 > , try and between the ESCAMBIA COUNTY HOUSING mix—CE AUTHORirY, a public body corporate and politic organized and existing under the laws of the State, of Florida (hereinafter referred to as the 'Escambia Authority"), and IN'DIAN RIVER COUNTY, FLORIDA, a political subdivision of the State of Florida (hereinafter referred to as the "Participating County"): WITNESSETH: WHEREAS, Part IV of Chapter 159 of the Florida Statutes authorizes the creation of housing finance authorities within the State of Florida (the "State") for the purpose of issuing revenue bonds to assist in relieving the shortage of housing available at prices or rentals which many persons and families can afford: and WHEREAS, the Escambia Authority has resolved to issue not exceeding $80.000.000 Single Family Mortgage Revenue Bonds, Series 1996 (Multi -County Program) (the "1996 Escambia Bonds"): and WHEREAS, pursuant to Sections 143 and 146 of the Internal Revenue Code of 1986. as amended (the "Code"). the amount of Mortgage Subsidy Bonds which may be issued in each year is limited by a private activity volume cap which has txxen established for such purpose within the State: and WHEREAS, the limitations upon available portion.5 of the volume cap prevent the separate issuance of bonds for each county from being feasibly and economically accomplished: and WHEREAS, the Escambia Authority has authorized a sufficient amount of 19% Escambia Bonds to fund the anticipated demand during the proposed Origimition Period for qualifying single family mortgages of both Escambia County and IndLan River County, as well as certain other counties which may also participate in a j ,flit bond program: and WHEREAS, the aggregation of mortgage loan demand and the secur tg of air Irlatrd amount of the State volume rap (the "Allocation Aimountl /panted by the State ihoo Kh 1996 (the "Authorizatf(an l'rriod") for the purpose of issuing bonds to Anaef[ge yisslltyirxg sy{le f&mily cirvelopment (the Vandal wit) r+mWt in a wldes allocation Of lixad eaWerut-A slid Urri.stu ottaez etYuwMtcs of WA . and VREREAs, uril+4s such ec=wmdm am ruftmed. Ow Ieeuai m cd YonSyt Bubo* bonds would be Mas ecanowA a! neeuMM In W&s mettWp a nfa d dual" msftpgses: sed . Sattler man aad Iee1 wL lffflde HY0AUa atfmntw bd S ism aftow to aw 1■ mmm of tee� bNofle teti0 dw ftmEliff momm to 40„I w Ow 4mruav of at— -, - Ir awnlflg .we tet. Cat". StAllift 4W --i 13..m. t ov . 1 W setfad tV 4 af dw lbam" 4d &A11i r� • Commissloner-% of the Participating County adopted on ; _ _ -_< <. Iqq� (thr ..County Resoltition' ): and W ERRAS. Sections 163.01, Iri9OOS and 125.01. Florida Statutes. and the County Resolution authorise this Agreement by conferring the authority to e"Serctae or contract by agreement upon the F_s ambia Authority to exercise those powers which are common to It and the other parties hereto and to include the Participating County within the 1*scambla Authority's area of operation pursuant to Florida Statutes. Section 159.603(1) for the purpose of issuing bonds based on the Allocation Amount to (1) make available funds to finance qualifying single family housing development located within the Participating County in accordance herewith, (2) establish the reserves therefor, and (3) pay the costs of issuance thereof (collectively, the "Program'). NOW TEMREFORE, the parties agree as follows: Section 1. Allocation Amount: Substitution of Bonds. The Participating County hereby authorizes the Escambia Authority to issue Single Family Mortgage Revenue Bonds from time to time based on the Allocation Amount for the purpose of financing the program and making funds available for qualifying single family housing developments in the Participating County. Any 1996 Escambia Bonds issued for such purposes in the Participating County are hereby deemed to be in full substitution for an equivalent principal amount of the Participating County's bonds which could have been issued for such purpose. The Participating County hereby authorizes the Escambia Authority to utilize the Participating County's Allocation Amount on behalf of the Participating County for the purpose of financing the Program.. including, among other things, funding of qualifying single family mortgages in the Participating County. and the Escambia Authority is hereby designated as the bond Issuing authority for the Participating County during the Authorization Period with respect to such Allocation Amounts. 'laic proceeds of the Bonds shall be allocated and applied to the funding of mortgage loans within the various Participating Counties and for reserves and the payment of costs of issuing the Bonds, all in accordance with final program documents approved by the Escambia Authority. All revenues generated by bonds issued pursuant to this Agreement and by the use of the proceeds thereof. will be administered by the Escambia Authority or its agents and all payments due from such revenues shall be paid by the Escambia Authority or its agents without further action by the Participating County. Section 2. Administration. The Eacnmbla Authority hereby assumes responsibility for administering this Afreement by and through Its employees. agents and officers: provided, however. that the Participating County retains and reserves its right and obligation to rrquire reasonable reporting on programs designed for std oper-Med within the Participating County, ineiudu% but not U -need. to. 3VAilahle mori,s;+gor or profile data. 7Tre F_scanibia Authority and its agetW l i(mcir ti,r I'anit°ipatingCounty with such irla;rris as may be necessary to account for t1115ti' i@erlrrAt ed Ir}y this Agrretnenl• 'mr vocnio b Authority shall L�,4ye hA autho ter and tan 1 rra<ri Late, deeLm fit. mtist at. sdi. issut std ddhw as aortia in Ms WANWitais low A, 1tx at10R AMNOWL basad WPM asssfgyr laity deasaod. pAoltad hV � to feeatos. 0 ti ;' � M W tt 1 Qsianly and w 4O b-uib a1W g=n • uW be teer ar aOW �jep Qwa� oq a� Ib ilia d � 4100811111 saft"tr it �r +� rte. fi rs goat OW dr A4v—aa NMA W OF dnM w itias •ar Cam O atiitl siting i':.' t'Auman ft=" slam dr sur 6 A air e • Mt . s. it, .., :. r [-, am nmm 46,0� - region ander Section 159.804. Florida Statute-. %hall be allocated ratab Y fret er,� Indian River Count-,, and such other Participating Counties anthin such regtr.n baseri upon lender demand. All lendable proceeds of the Bonds attributable to the mortgage loan demand in Indian River County shall be reserved for nae in originating mortgage loans in Indian River County for an tnitial period of 120 days. The issuance and administration costs and expenses related to the Bonds issued to finance the housing program and administration of such program shall be paid from proceeds of the Bonds and revenues generated from the housing protium. Section 3. Program parstmetm. (a) Upon request of the Escambia Authority. the Participating County shall, to the extent permitted by law, (1) approve. establish. and update, from time to time a. necessary. upon the request of the Escambia Authority, such program parameters including, but not limited to. mammum housing price and rr wdrilium adjusted family income for eligible borrowers. as may be required for any bonds issued by the Escambia Authority pursuant to this Agreement and (it) approve the allocation of mortgage loan moneys for each Participant offering to originate Mortgage Loans within the Participating County. Unless otherwise notified in writing by the Participating County. the Escambla Authority may from time to time approve and establish such maximum price and family income amounts at tile- maximum hemaximum levels provided pursuant to the Code without further action of tite Participating County. (b) 'Che fees and exlxrises of the Participating County shall be paid from the proceeds of the program in the manner and to the extent mutually agreed upon by the ofTic63ls of the Participating County and the Escambia Authority at or prior to issuance of the 1996 Escambia Bonds. Section 4. Term. This Agreement will remain in full force and effect from the date of its execution until such time as it is terminated by any party upon 10 days written notice to the other party hereto. Notwithstanding the foregoing, it is agreed that this Agreement may not be terminated by the Participating County during the Authorisation Period. or by any party during any period that the Bonds Issued pursuant to the terms hereof remain outstanding, or during any period In which the proceeds of such Bonds are still in the possession of the Fscambtit Authority or its agents pending distribution, unless either (1) the paxiies to this Agreement mutually agree in writing to the lrmi.*s of such termination or (2) such termination, by Its terms. only applies prospectively to the authorization to issue Bonds for which no Allocation Amount has been obtained and ftrr wilich no purchase contract has hrrn entered into. it is further agreed that in the event of termination the PaMest to anis Agrecmcnt wtU provide continuing cooperation to each other in fullgtting the obligations associated with the issuance of bonds pursuant to this Agaresneaal. gerti(m S. IndezMalty. To the fuli eft permitted by lase. the Bsmobia AWhoilly agues to hold the Pattie OUng Causty hansdme from any and aD ic,r Irlmyrt,eTit of prumsp o of and interest or penalty an the E3oMs. and the raenitD@1 ani{i 0011clsis of dee Parr IC401S ng harmim 6=1 and aD hoblift in CD tm,a ft-Uoes wlti5t fila a�e�o nadned pussruaeu to SOLUM t and ISOMI . 1�4oAds Statutes. UW �aoa>�Is AetehOMW &Vas dine aftwo C&C%dw or adkW .D e tate mmd eSprOwtd tw sad Used is ME11601111ft dw INS Olrnde stool tadu0e X- . . sta irem tis On edhtii ON Ulaedrxw MW hell tlsealt its the Own" le. a Ir.yirnrret d (lite snide and flatmM 4W proMms duraft Q W O O4411✓aa lob, a kr< r ", res s ilectJnn 7. Tuts Resolution shall take effect unmediatety upon its adoption. Maly adopted in the rc u1 3f'semlon this 5 day of DP(,2-1t)ex199_� INDIAN RIVER COUWIT. IPWRMA KENNETH R. I ACHT By: "_ (SEAL) hairman. Hoard o County Commlasioners ATTEST: Clerk. of County Co sioners •f. , — 1h W t. I— H..A.- - - W1a , S. 1 11 s ♦ t 0 4" ' -r r 16 s is t°+&tai :" -4r tet, w "S" a ftd* & et.1914• or r t esfeu's. ""I($ Of t v?"T two Losse oettoa am !Mg it? erg t Trr• rwrt J wvttvir f1d►t I , (te t� cer!♦Tete1 h N't3 (, , r t . , _ -= ° �= ` " _ a s Merner eddrose eras rHe" wwar of poleon e91e6pstN Quits ""No""No(Co"flrwatteo or rsseetben gilt) be goat to the pus" satins• ett.er+►tge aiteetN1 � Ld tu11 t i tI W i l 1 iaa R , Nyug*t t Co. fhons : " ?) a1 S- saes Adereest 1Q0 "ELLr,1 Ar'P1%v Smith, 5"Itp AV', St. ,fJi Issuing Agoncyt 1� A"1,1;4 f .Linty Pt:i;4:tn1 iirtA"Cf'- .A�it')oTitV —� --- - Company (if applicaUle) r AAountt Is this a Supplementary Notice? Yes_ No x Check one of the followings Multifamily— Single family x Others (it Other, specify)_..._ Is this a Priority project under State lav? Yes No x PurpOies_ To par i ipatQ in Es -'Cambia County Housing Finance Authority Ci nn1P family Mnr;natiC ap,ye Utie Uplds. jQries 1996 (Multi -County Progrdm) s. 147(x) or similar.IRC Approval Datet Contemplated Date (s) of Issues March. 1926 Approving Authority (Unit of Government) t (nonan River County Agency Official and Titlet_ _ U NNETH R. MRCHT, CHAIRMAN I hereby certify that thy+ elected official or _voter approval required pursuant to 147(f) of the Integnal Revenue-ICoa-e li as • na nem on �te a 0--TRIC-41—ed above, and that the amount re 00 0"a Msc ad to be requ re e t nanc ng ema at ea_s_ off the &oust "questod above. / Signature of Agency officialtjl�tyyu�f l//� neth R. Mach -t, Chlirman Approve 0" PART IT. (to be completed by division of bond finance) 8pJrd Date and Tice Pe sivod:- Received bye Statues (confisnad c z r*1*cted) Cawents r , 1NRonnt Canlisrae0r�-__ Confirmation Vein Thres"r Cetsgery of Coaft>reetioni T t e 1 e r [eetdn. 01+r . s►t RsiY r 12e tssvts is Deet), Wt= MI rr(It o0e1 ZMPATM is ONSMtONAL are � #W#LL VIM N CCWN09 s0 rtKU vwi a : &M it! 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'"111F' .'°�'.Rti:� k w atilt . plm � -i k:• „- .w+• Ma+w+ t4ir tNlpa i !IFa4iry e+ekalre • ltr.,aa two w h. ttn Mae, i.l. n 1.•r.A. a 1 a ria t rani,+. r. d or f1W"- H ta.gai W-0 rraaarrstgad a*- R wamfsmon +aloe �qM wr rrA a "Motors i ai�maml.lrima a°C"f.Mrd M +Ari ldf.tv.i �mrtrma.tt, awA aratayd aAmmiel nim m d+.r'lam.. ar.'sme..a. w. r.irid. � dTr rw. =1.r r r....i<.gffs 1Ar pfwab at ler aeee► iepA.r amt. .,,,r+ ,t, �4 ; ., s,.aal _ wfeee/aaAedt4AAt�rhlpaRlprrwt a �r .� 1r+Rya as . t++1� lla.ayr lk+s frac .di r..4 bps tie IWIMIS peal► _ r ttweirr (ieile lewd 11rIR v p A flay* i Wry. iww OWN& Am- MIMA IFMA 1btpv pallid rwYli ftsl w 49'3 • • .. fa mir 11 "m an.rur lei lams■ "ft . `pear ft& b • pwpm *°Ileo► wr pfmaAae A� —Md . t. 0 raplft a.. Y;tCM� +.w<ta r..' dawrrfd r r fseA I tad asws `r Itr amstfwwm I:memat NO 1p0 AaM... .. vatlt#' wr taws w ta+ at wa■1w.r thtAar.mwd t `+ d `WD a/wafrt�t Awl f�teli%►A.f.+pw+..e►.w...p.a.m.,Nmnm.r�. m�c� 4 Mmes Ari+mm r7`ar Mw' ad rm`ad o pard "Mlffa., samrawd r"1Pe/ Wa afro la r ew wmr or �iiN%W Ond r b� � d 1fe�. Ate. d wdww. Mdo . A..w awe. r Ar. `paeyn d kik Rtrfa► Club" ltabm tttmaamb ban (lyft= law fora fbd mm llal" m waft ttmw t LOW ad Willa ail Minn dime IFneryweta "Bob Manor amommod le !. Amtaar r ptnE"mmom . f1r d»M tart ft f lmr•mr` • afdw like smttaratmw r pop lea stir tlatb ill came flues ApaMm. a..aa,r rimy ad • U. dm a pt.rrr d Or w d amww mrd . Or 4WERIAMNti.e. flet VNINWM gnu= fm am OR VAWtf.w. l Mara. ` rw. a AaIFamia Pond e.O&W Ir.m dl or "Marr f+mram. 45Arrmaw. rm a wafeaf Pod" meanie *oft ..t ptms or es pwtmw dem "m . also d MMM n 09ko r "r p:a. no r.rmr. ft= dr Mem" • w torr a 1Mw.` l and sal rr raamd . m anagram Wa.ra "mr a. �.. taamrr ter er it tu" POO Alt SOW Uaatrwm Amwmaaar- boom Amimo/► Aeftrr alt ammwf de..ra.a aw. amt Owen/ • mammal moignmemom d db ffafimfpll ad i r ss`i • alti�ntfa ter SEMO • 4NIM" 49 der 4%M I tTAmmfm w aq 49 Yr 1"wl idnamw.• a. ,arch." Kwan .wr amp or %tram4 itl all, Meed Awtrf `� ♦r � drmrM. au4► as a� 0e. fo t+Rmt�.f t.a.wnw .® awned . b rrer..t.. to. Aamf� aimii" b ..r rr ta■mom arta ora eam" +*..mfr A or AA XMM or 401.d fp0nfrn. w lyra... aaa..r1 .m ` s a.raf.. ams drama" rtww . mrmm {rhe d o w. rml dtttfas♦s s tfyr fain a• A� alaaailm I w w a., a .." raatr..amrM Op a .mw. am ham m aw rnnr" .ti�arrm d lrmr amity dr. aet®� s ar . 4@81 wae w...wm.. +sera + lis rafwoomaft or a awlar. • 4%. aar ..r idh+MN ooddimmismm emus amt am► to up"m do* s twat o m m mr am a -. ...a dm! arm uwm r mayfly s i ap octal. a P^RPWUM dsA.wr as um mat. a. a.. "MMOSM" W" 0 d► msrmaar. raaoam a. f.M lfoft /tor- dtder 400 AfOmmker do 4 4MMU . pr. sa.*.. m. f plllraO molom umm ar...d • deafta .. +r. «sMr • wr dra fir Ori a do kmram dtmumm. 4*0 color OPM& + abs- llr An.► w raw r Sar rr w a «war aro_ • Momma...a [Ammov Oommmor9" 4maw+m fr lir. Ale ream/ ... —.".a lr o Maar ama..p an.- 900. mar• !! aMINVsi --.yr - orae y 1.... «M-r. — e atom' arr..tr...aMrrr t. t. "" .r...«• ... . . «... a.... •�mlw fJy.a► I • .�. gwMwar mar A same a• lis gra........—r s aaaamr r imp a ammaas- .4.. • a• qu--ft Mar .a..• a «wr .amt arra .n mar • tar ! • waammmf► war. Olmoo & .,., . Mur w neer. M ar a..r .w. ar o► emrwr► or Mama. a oMr,,,' 04=w- ft. da..ra .sw► ar Mrinrtaawa +mora wry tram. .y a da.mrrar, • • ►..mime Aram, 4 .. INAPPOMW low IN raww as • ar...w•.Or a......... . r.. w bm yam ar• a a.► «..w • no ftImre. « U" %"a"a lad St RIVS A Rt)NIPS AMOUNTS, N.ATUR11If'S, 1\T► RFST RAIV*. ASI) 42.(:4:.,(11((1 Ronds 17,575,0(0(} Term liond,% due April I, 201s. Pr cr low, (4.75'i throug% and including !tart h 31. 1997 and therraRer S.111►'.) $4.365.000 6.2W, Term Rond% due Apri) 1, 2011 . I'ricr IOwj S2."S.0006.25', Term Itond% durApril 1, 2+►II • 14rir•e IOW, 0,690,00(06.25', Term 114>nd% dux April 1. ZOZ9 - frier IOW i WRIUS K IMM)" A1A71"}il"I }t.'%M ►l'?41..INIvNI :I (1.11(,.1\1)I'RII } 619.389Atr( !S. -r i. , }# It,.r,,9' 3616. to Maodown Tswd■r Maw. t.. llw.t+A..d 11w(rr PAs 100% ( h1 +.r.(1 r.ti.•r 't" Mandatgy Trwdr� (:.t., 11r► Nnawbl.d !4r stir. 1Ibar uA day tbwwd • twfftt1 bwr Intat!!1 lhterrst Amount Raft Maturity frim Annt.unt Rate �t�aytyuriFy t"�icr �l4�ywL1 4 It)�1/v!x 1111!'. �1 W'!.I1R) iViMA (iln 14i.A0p 4.70 411!1111 I it i i �S,(1i)11 $ 39 WMI (I, 150.0110 4.70 10!1 /irli 1 5,30 10fM i 155.(11x0 4:110 4/hall 1(0(1 }�):111►11 $.40 4n m,,, 1 fr0,0fK1 440 I0/ I ) l 11 0(1 ��r1:, (x>n 1.40 10/1x 1'• lti�i,(KNl 5.410 411!12 11)11 210.(") a 5Q 4n1106 170.000 son 101IM2, 100 2111.04111 :, :Kl 1011108 t .1 171,(1(x0 5.2(1 4/1,113 1111( 17,575,0(0(} Term liond,% due April I, 201s. Pr cr low, (4.75'i throug% and including !tart h 31. 1997 and therraRer S.111►'.) $4.365.000 6.2W, Term Rond% due Apri) 1, 2011 . I'ricr IOwj S2."S.0006.25', Term Itond% durApril 1, 2+►II • 14rir•e IOW, 0,690,00(06.25', Term 114>nd% dux April 1. ZOZ9 - frier IOW i WRIUS K IMM)" A1A71"}il"I }t.'%M ►l'?41..INIvNI :I (1.11(,.1\1)I'RII } 619.389Atr( !S. -r i. , }# It,.r,,9' 3616. to Maodown Tswd■r Maw. t.. llw.t+A..d 11w(rr PAs 100% ( h1 +.r.(1 r.ti.•r 't" Mandatgy Trwdr� (:.t., 11r► Nnawbl.d !4r stir. 1Ibar uA day tbwwd • twfftt1 bwr has been A"t }l!lT 3 7.P_d b�, t h— Aut h%?r i t "j r t *the any in107Tnat inn car t :. makA `�i� the arty r epr aA�nt Ai ions with respect to the Porlds other than t}tt�se r-ont aired i VI t hiA f� given or made, such other info?*,at it ff ficial StatYslsRt arta, it be 'Plied upon as having been aur. },,r i ter,; ) t'pteseOf thef waist not This official Statene y any of the tarogL►iAq nt. doeQ t. cr ngt itut.e An. offer to sell or the solicitation of an offer to buy, r01- shall t.h^re be any sale of t!te Ponds by any person in ;"IV Jurisdiction it-,which it is unlawful for such person to make such offer, solicitation of Acle. The information set forth },erein has }xeen obtained frog: thy* Authority, the Counties the :tel-vicer (,as defined herein), the Rarti;-ipants (as defined herein) and other sources which arp believed to by reliable but it is not guaranteed as to accuracy or completeness. The information and expTesions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hezeundt�r shall under any circumstances create any implication that there has, been no change in the affairs of the Authority since the date hereof. All summaries herein of documents 'ridagreements are qualified in their entirety by reference to such documents and agreett►Pnts, and all. „ammcrriF ., herein of: tiles Bonds are qualified in thAir e11t-irtty by reference to the form thereof included in the Indenture and the }provisions with respect thereto included in the aforesaid documents and agreeme:nt.s. IN CON74ECTION WITH THF: OFFERING OF THE BONDS, T.qw UNDER RS MAY OVF.RALLOT CR EFFECT TRANSACTIONS WHICH STABILIZE OR KAINTAIM THE, MARKET i R I C'E OF THE P(-.NDS AT A LEVEL ABOVE THAT WHICH MIGHT O1HE:RWISE. PREVAJI, IN TNF OPF14 MARKET- SUCH STABILIZING, IF C OMM hN C F U, MAY BE J I S CONT I r'UM ,,T AN,;y T I KC . THE, PONDS HAVF HOT BEEN RSRISTXRBD WITH THE SECURITIES AND CCANISSION BY RSA9M OP THE PROVISIONS OF SECTION 3 (a) (2) OF THE ACT OF 1933, AS ANgM=. THE RgaIS RATION, gUALIFICJITION OR E: X EM I' T I CN OF 7W BORN in ACCIORDAIM WITH TM ADPL I C319LS SecUR IT128 11'" 3 ic;VISIOMS OF THE JURISDICTIONS IN WHICH THESE ITIRS Mi1Y RAVE I "r: i RWISTTCM, QUkLIFIBD OR AS A ®Ip?Sp NOT BE REGARDED I* t C't3 IDiiTIOY '� , =tom THESE JtRt I SD I CTIONS NOR ANY OF T k i R AOUCIRS NAYS QUARAN' M Olt PASM UIM>R THE WEE! ITS OR SAFM OF THE 900104 AS AN tMUTM T, UPON TR! PO NASILITY OF ART "WI"GS Z't=S OR Upas TNS ACCURACY OR A090MRCT OF 'UIS OFFICIAL STS . ANY TATIO N TD Tat CWTVARY MAY ME A CIt IMU%L OPPENIMB . TAPLY rF CONTIMT INTRODUCTION n -W SERIFS A BONDS . .. 4 Description of the Series A Bonds . . . . 4 Redemption Provisions r, Manner of Redemption . . . . . . . . . . . R Redemption Notice anti Payments . . . . . :3 Purchase of Bonds in Lieu of Redemption . . . . . 101 THE SERIES B BONDS Description of the Series B Bonds Pledged Revenues . . . . . . . . . . . . . . . Maturity Schedule . . . . . . . . . . . . . . . . . . Mandatory Tender Provisions . . . . . . Redemption Provisions . . . . . . Manner of Selection of Series B Bonds for Redemption or Purchase in Part Redemption and Mandatory, Tender Not:ice . . . . . . . . ESTIMATED SOUFcCF.S AND LYSES OF FUNDS . . . . . . . . . 1.7 lI 11 12 13 15 17 17 SECURITY FOR THE FONDS . . . . . . . . . .. . . . . . 19 . Pledge . . . . . . . . . . General . . . . . . . . . . . . . . . . . . . . Commitment Ferns . 20 . . . , , . . . . . . . . . Additional bonds 20 . . . , . Reserve Account. . . . . . . . . . . . 1 22 inve:$tm�-nt At�r�e�ment.� . COVERNW!i;NT NATIONAL MQRTt,A(-.i? PROGRAM y G NTMA Comi tse r, t. s 5etiea A GIM Certificates Servicing of the S-; iea A Mf:r t ,a.#q, L -ars : 4 Psymrnt of Pi ncipa ] of and I i;t +-t est r -n t i;r S -Y 9 p .'s A (3 W.A C'�r t 1 a c- tt ea 26 NAT7sPhAL 1q()jt_%4M AbYCiCiATZCM P1101g," M r t ct&,;e frac ked feaurit I*e ProWee ?i i,.— 1 flurchame Cbmea ct . . . . , . . . . . . . �? s-1,104 A RanuLo Iiia Msc us ties . ?• Pa 1 Aar n t e= Aalrrlllt Laaa 1 man Dimribm aaa an movies I=1%* scvrtt too - ?• 190WAIV UVOWTM© � 4 RIM !� e w tal 0rt Lr be i of a we to t11a we of "# tee a "01'sw Wwns 6440W bs a (•Anelra) Deocription . . . I . . . . Interest Rates on the Series A Mortgage Loans Fannie Mae (1cm4-.-ijnjty "(we Buy -l's program. Federal Tax Law RPqllj7f—*,ntv oriqinae ion and I'll I cha sf, I nsui ance . . . . . . . . . . ervirin Of the Series A M(-)T*t-r;.ic;F'- I,f)ans Assumption Restrictions . . . . . . . Foreclosure Laws . . . . . . . . . . . . . . The Servicer . . . . . . . . . . . . . . . . Issuance of C,%,v,,A Cu-itificater, 'And Fannie Mae. .1.,ecurit-jeS . . . . . . . The . . . . . . . . . . . . . . . SECOND MORTGAGE PROGRAMS . . . . THE AUTHOR lTY 1 4 Ory 41, 4'� 4 A, 4-7 4 -it 41 49 . . . . . . 50 51 . I . 5, 3 General . . . . . . . . . .. . . . . . . . . . . . Secondary market Disclosure . . . . . . . . . . . . Prior Bonds . . . . . . . . . . . . . . . . . . . . OTHER PARTICIPAT-INIG LOCAL AUTHORITIES . . . . Citrus coull... )I . . . . . . . . . . . . . . . . . . . . . . . . . C-adsden County . . . . . . . . . . . . . . . . . . . Hardee Count} Hernando (7crinty Indian Rive- County . . . . . . . . . . . . . Leon Authority . . . . . . . . . . . . . . . . . . . Marion County . . . . . . . . . . . . . . . . . Okaloosa county . . . . . . . . . . . . . . . . . . . . Okeechobee county . . . . . . . . . . . . . . . . . Santa Rona County Lucie County . . . . . . . . . . . . .. . . . . W,i I t on (,C�unt y . . . . . . . . . . . . . . . . . . . DEVI NI TI ONS, OF CERTAIN TjWj4S . . . . . . THE INDENTURE . . . . . . . . . . . . . . . . Transfer and Ex(:harqe . . . . . . . . . . . Series 7, Ac-quisition Fund . . . . . . . . . . . . Series rum . . . . . . . . . . . . . . . . . Cost (A 1:44&nC40 Fund . . . . . . Progran Xxpw FvwA . . . . . . . rov Of PUN" . . . . . . . . . . . . abst . . . . . . . . . . . . J,tl� - ' 0 llh�tAiUg &a PUlds awd Aevowme It-VO-OLGAM 09 V%WAd§ 4" &WOOrAfte ftechmp ad tudwaft" 00941MItA Md *AND"** 44 54 C; 6 56 56 S 6 56 S7 S7 S7 S8 SS 71 71 72 7S TS 7S 76 as WAYVtYa C5 i+.vr1'!YC !'i T"'ia'll+ •1 Su}�I+I PmPnt a I i ri!int ilY . . . . . . . . . . . 94 DI:yCI,0StTRF. PURSUANT Tt? 14"( T1UN `_717.051 , F1XVIDA STATCT�"BS ®f) TAX FXFMPT10N . . . . . . . . . . . . . . . . . . . q? Amort .i zaT>le Bend I'Y-Qmi t:-7 . . . . . . . . . . . aq ABSENCE OF LITIGATION UNVERWRITING . . . . . . . . . . . . . . . . . . . . . . . 99 APPROVAL OF I I:GA1, PROCEEDINGS . . . . . . . . . . . . . . . . 99 RA'T'INGS . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . 9() APPENDIX A -- FORM OF BOND COUNSEL OPINION APPE14DIX B -- SUMMARY OF CONTINUII:G DISCLOSURE AGREEMENT OFFI(774A1, :,A f7�tF7v? rolat.ir,q to) $25,970,000 F;;CAMT IA COITNTY HOUSING FINANCE Ai.iTHORI.TY Single Family Mortgage Revenue Ponds (Multi -County Program) Series 1996 A $12,385,000 F_SCAMHIA COUNTY HOUSING FINANCE, AUTHORITY Single Family Mortgage Revenue Bonds (Multi -County Program) Series 1996 B INTRODUCTION This Official Statement of the F.>cambia County Housing Finance Authority (the "Authority") is provided for the En,rpose caf setting forth certain information in connection with t -he initial issuance, sale and delivery of the Authority's $:5,970,000 aggregate principal amcant of Single Family Mortgage Revenue Bonds, Series 1996 A (Multi -County Program) (the "Series A Pc)nds") and she Au11ehorit.y,,3 $12,385,000 a99regAte principal ar�ount _.f Single Family Mortgage Revenue Ponds, Series 1,. 961 (Mu It Ctrustt_y r r:Xgrsrn (the "Seriets B Bonds") k-011eCtively, the "Sonds"). Certain capitalized terms that are u!,,d in this Of f inial Statement shall have the definitions ascij/r--d to LhF1n in "DEFINITIONS OF CERTAIN TERMS* her.•Pin. Capitalized t.e2ms mit otherwise defined herein shall have the "ranings assigned to t1e1 in the Indenture and the Orlgtnatiom Agreement (earth as her.�in..tt, defined) The i-(,nds are bein issued pursuant to a Trust Indenture dated f Nar(h 1, 19 6 (the •Indenture•", betreen the Authority and Tl ur-t Rank, rent t al Florida. int iwmal Association. as trustee I t !;' ,t u- t e.-'° ) . 71110 PCOCeeds and amounts pledged for the payment , f t h" , . f.., , : d w will be bald by the Trust oe • n funds and aceomC e i s ! : y under the >I ndenturs . Redeept ion of the 1k nds way be n t t,. aeanr.er described herein . Yee 91W tib • - RedwOt ion not 4 s , t tieiii Crabs* Oet es for tke ser ice b spedti. sort** 1 4nwss Omit be ow""d blr the cries A rtedrd +swM am will amt be esew sd on a parity crick tie ssrtm a ea�db. Attar a WAMMAW lry V40dt Ort* fear tis swiss s 4i" the eMr A belft 6kt11 be M*fir bw tie sfwfe4 bowwwwom t a pe"t with U0 mar Gen" • Nor dad aw Arddic NYl SMAOS f' Wood ci d as (al— -0" y" `Ica it eM �fw A "Mfie• lM�eare, !AQ •ear w A *=Ide N. wb)owe to '� 0=00807 MOM ser • awt at» 9.&%8 aVA6W" idly 1 l n t:.,i,- "1.7n7in7- rtrP,-7-] 1-.r-�.� }i�''7 ^ 71;- Redempt.ion Picvi: icns" her-in.i The Series B P( -T1+- whi Ch }'AVe not Wien remarketed Rha; 1 be securel solely 1)y the Sea•rJPs R I lec9;e:i Revenues and will not be secuied on a parity with the Serine A Ptends. After the mandatory Tender Date, the Series 13 Bonds will 1>e sec -T ier3 1;y t.ho Pledged Revenues on a parity with the Serie, A Bands and any Additional Series B Ronds issued on the Mandat.ozy Tonder Date, (See *THE SERIES B BONDS -- Pledged Revenues" herein.) The Series 8 Bonds are subject to optional and mandatory red-irption and mandatory tender, in the manner described herein. (See "THS SBRI9S B Bt7l`tD8 -- Redemption Provisions" and "-- Mandatory Tender Provisions' herein.) Additional Series B Bonds will be issued only in connection with a mandatory tender and remarketing of all or- a portion of the Series 13 Bonds. The proceeds of the Bonds, certain Com itTr.cnt Fees and certain other available monics will be used (i) to currently refund scheduled maturities and ))Ond3 being as a result. of mortgage loan scheduled payments and prepayments of th= Authority's (a) $1,955,000 Single Family Mortgage Revenue Bonds, Series 1989A and B, (b) $921:,000 Single Family Mortgage Revenue Bonds, Series 1989c_, (c) $1 , B,'.0, 000 Single Family Mortgage Revenue Bonds, Series 3990, (d) $1,495,000 Single Family Mortgage Revenue Bonds, Series 1991A (Multi -County Program) and (e) $715,000 :Tingle Family Mortgage Revenue Bonds, Series 199; (Multi -County Program) (collectively, the "Refunded Bond ;") , (i i) to provide funds for a program (the "Program") pursuant_ to which the Authority will 1urchase tully modified mortgage --backed securities ("GNMA Certificates") of the Government. National Mortgage Ass.7ciat ion ("GNMA11) tacked by P.,c ole of qualifying FHA, VA or RECD mortgage loans and single; poral, mortgage -hacked securities ('Fannie )Sat Se_cuz ities") of t_he Federal National 14ortgage Asecciattcan ('Fannie Mae") backed by pools of qualifying conventional mortgage loans, which FKA insured, VA guaranteed, RECD guaranteed or conventional mortgage loans have been made Ly certain mortgage lending in&tituti(,%x (the "Participants") to qualified persons or families of low, rt,{.aderate or middle income, to finance the purchase of single 1-imi1y residences in Citrus, Recambfa. Gadsden. Hardee. Metnand(), iridian River, Leon, Marion, Okaloosa, Olteechalms. Santa Ross, st . 1,u, ie and Walton Counties and certain other Florida count i w w� de ■ i gaated by the Authority got part icipat ion in the Program (collectiVely, the 'CoUnttes•!. (11&1 under certain c i r russet apoos, to pay interest on the /Bede and certain prowsot SapOap" fbotsiV definew sed tins) ita Las of the come at les doom re l at i as to the goods, am ' f -L dOWSS am 0000 CI Pummle here t a . lrsswat to Un N or rias* iae do t ad as of %&rVb 1 • a "6. rttoesd imtA sad Soo tip e tr. Truse so , Pt"M "K640049 tI. 1= s.� Bat ) sad soft 0041 to 40011oaf vely. "ORi�tartf�ts Ae t a) set/ Otte" to 2= ODM %. t is van woon" be" w h..R "use�h. %8 w ft t B� lessst ee 44 01.etsrut to f�w f / A Lat�et 44" tae Mr'ei/Mattss :i r a Pur Rilatli t o t h- Program Admin l:-" 1 .11 ' ' -, f' 7: --"int tetwftPen the Attthot i t y and t he Servicer and tt,� M,_•rtcjaQ® �erviciriq AgreRwsist t�Ptw•een the Authority and the ; jvic-er findfvidually, the "Administrati(,n AgrePtamt• and "Servicinq Agreement, and oflectively, the "Administration and servir-ing Agreements*), ea:, dated as of Maich 1, 199t,, the Servicer is required to review earn Mortgage Loan to determine compliance of such Mortgage Loans submitted by the Participants for purchase within the eligibility guidelines of the Prc>gram and to service tile Mortgage tc>ans that are purchased pursuant: to Ille Program. The Moi t.gage loans financed with Clio funds t .ode ;avail fl by the issuance of the Series A Honda (the "Series A Mort_c�agP moans"! will be fixed interest rate leans with level r:onLhly payments of principal and interest_, bearing an interest rate of 6.65% per annum, except as otherwise provided under the heading "THE PRCK;RA.M -- Interest Rates c- -n the Series A Mortgage Loans." The Series A Mortgage Loans must have a term of not to exceed iso months from the first payment crate of such Morto3agf, Loans, unless other—wise approved by the Servicer. Each Series A Mortgage Loan made by a Participant must satisfy the rules and regulations of the Authority and the terms and provisions of the Origination Agre€m.ent. See "THE PROGRAM" herein. Unless the Origination Period_ eriod is extended as provic:ed in the Incventure, the Series A Mortgage Leans must be originated and purchased by the! Servicer fly April 1, 1937 (May 1, 1997 for Targeted I'_-oceeds) . The :servicer. -A' ,3 a Fannia Mae—approved :;eilnr .ervicet, l C-NMA-aWyoved issuer serviCer for FHA- insured, VA -guaranteed, RECD- guarante('d ar)d private moot. aaq— insured mortgage loans and an aut ho1`i Zed issuer uer f car GNIMA Cf -rt i f i c•.ateg and seller of Fannie tae : Esc -,ori t i es . Pursuant to t. I.c ()i i (; i n. -it ion Agreement and the Administration and servicing Ac3reements, the Servicer will pf-ri,�idically purchase from Participants, FW1 insured, VA guaranteed +nd RECP-quat_anteed Mortgage troans in amounts sufficient to create a Pc o l t c, ("4 u sP the put'ch&ase of GINA Certi f i cat es and Convent lona l Mc;rtgATrc 1,=cans to cause the purchase of Fannie Use Securities. GNMA Crit i f i cat es and irann ie lye Securities are eowet Imes referred to c eA l s -t i ve l y herein as the 'Mortgage Certi t icates . • The "ervic-er will assemble the individual nWVA/RMortgage Lovas it hams i;„ t:.:*d into GNM 11 pools having an aggregate principal .*mount a ut t ;, i1 IJ to meet the standard win slum pool also to tore a 93M CO. t t i f i, .* t o tun 1 ese a leans amount i s Peru& t t ed by ON") , and asiign soac h mi.�Z'c Loans to am dao vi i 1 issue OIA Qsrt s t states A QWGh4WqP th* I oft_t ',Tisa Servicer willto the sndsysdn�asl i+� 1�ttg"r IA3r and de l i ve t �t o Iaoate Moe to 00"titate Asia now noels to a wiaawrw orsgimal prf waiptl anet t out t s C Sent to wast the standard wtsiaia past• - ae �t a Ates" WeeSec+asity, ott am* Lessers saar■t as abe 4W a sassua tw. amd romave As~i Eeocars2�i a ('( "'It y h-1 I 111 -seated the Authority and has determined that it is in th® 1 -at interest of the County to authOl ze the A'jt hr,, it y t(, i-gsu- t hr Bonds to finance the Pr'agsaa_ The Authority has fntfyrrci into Interlocal Agreements with housing finance authorities in each of the other Counties, or obtained a reRolution fro- the Board of County Ccx=lssioners of such County authori7inq the impletrWntation by the Authority cf its Program within such i'uunt-y (collectively with such housing finance authorities, the "Focal Authorities"). In .addition, the Board of County commissioners of tscambia County (the 'Fitard'3 has adopte;i A r-esolution aFprovinct the issuance of the Rands. A brief descripti,Dn of the Authority, its previous single family mort9a9O programs, its previous programs (where relevant), the Bonds, the Security for the Bonds, the C;overnment National Mortgage Association Program, the Federal National Mnrtgage Association Prcclram, the Program, the Servicer and the Indenture are included in this offici.a1 Statement. The surrTaries herein do not purport to 1-e complete and are qualified in their entireties by reference to such documents, agreement=:; and pro,lram.s as m:ay be referred to herein, and the summaries herfi!in of the Sonds are further qualified in their entireties by reference to the fora, of the Bonds included in the Indenture and the provision, with respect thereto included in the aforesaid documents, copies of which are available, for inspection at the principal corporate trust. office of the Trustee. This, Official Statement is intended to provide inforzation about the Series A Bonds only prior to the Mandatary xe^--ier Date. Purchasers of the Series B Ponds on the Mandatory Tende+r €)ateo should rely on disclosure do>cu.-^ents trade Available by the Aut_hnrity at such time. Tf1E EF?IES A P(NDS Description of the Series h Bonds Tire Se r i r i 7, i r, cis will be dated as of Ica r -n 1. 1 j Y6 and all.&11 boar int*rrest at )., rates and shall mature on the dative and in the m-uots as set fonts OR the inside eowr page of this Official I ateeent . Too Series A bonds are issuable in fully regiatered l etet ors l y , without Doupolis . in doaomi nat i ons of f S . 000 or �l exult iVIO thereot . Interest as the aeries A man" ail le i n g t i a l l y on tart atter 1. 19% and t he rea t t er on Atr i t l and r crps r t • .; , h yews with the lad MUM . Scarlruet i► t it. t or ids , t lase) dror i at i on, i s We asp as t suet ee asdar t� : r „fi■t1tlsa . Me tP seg • donde call Oast antaga t tsae the tattesest asst P99686"m talar an* at n+tet set un a d it -at �'O fwhlaM w� aerw • dead as sgegastatad end r 640"4 ss of son"O est MMNwt fts4. is i446 mss• at Ami boss Imadn"et t saes go" ttR+MMt 4OW1sW GRAft • fir M . ai+MM arMt�ess isresd drsst to OAa�r a W 41646 er�a OW rr BMs • and recall eaw asaerwrt 4 f —m Match 1, 1"(1, Or unl*vr- a 90r][014 A Wind is registered ar l Al henticated on a Sato which is attar trisapplicable Record Date Y- and foie the next enauinq Intetpat Per—nt wte, in which Cans It shall t--ar interest f7(-,-, @2rrh 7-,-x+ nsuirq Intpr¢at. Payment Data or unless, as shown by t I•,e r ec -1 Ar, f the Trustee, interest an the Series A Bonds shall 1>r in %?-fault , in which event any such Strias A Bond shall hea: int .>1 e> t 11(n the date to which interest was last Paid nn any such .et ies A I3.}nd. Redemption Provisions HAndittory Kede=tian. The Set-I#-!; A F3onda (-;r portions thereof ) are subject to sj-.ecial mandatory redemption its wh^1P or in part at a redemption price equal to 100% of the principal amount thereof, without premium, plus accrued interest to the date of redemption on any data beginning Tray 16, 199"1 and ending August 1, 1997 (or on a date thereafter determined by the Authority, if the Origination Period and the Certificate Acquisition Period for the Series A Bonds arca extended As provided in the Indenture) from moneys remaining in the Series A Acquisition Fund for from, other sources in an ar.c=unt equal to such remainingmoneys) which were not used in accordance -- with t i.e Indenture to purchase Series A P!:)rtgage Certificates. It is possible that a substantial portion of. the Series A Bonds may be called for Special Mandatory Redemption without premium because of non-origination of Series A Mortgage Lc>ans. See "GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PROGRAM -- CWM Certificates," "FEDERAL NATIONAL MORTGAGE ASSOCIATION -- Fannie Nae Securities", "PKOC,RAM ASSUMPTIONS AND B0111)HOLD:RS' RISKS" and 'TIM AUTHORITY t Prior. Bonds" herein. Mandatory modem i -ijl . The Series A bonds (or portions thereof) +ire subject to mmndatory redemption in minimum aggregate pzinc•ipaI amount r,T ;2S.000 and integral multiples of $S. 000 in r'xc f.',7' (-:�,f $2S.000' at a redemption price tqual to loot of the pj i n , i pa l ateCIUnt thetjeof . without premium. plus accrued interest to ri.ate of redemption from and to the extent there are deposits in :'er ies A subaccount of the Principal Account from Pr i nc i pa l P r •f ,a y Tm-nts and lb"ss Revenues • or from other sources In amounts equal to such macer_. in whole or in part. an any Interest Payment Dat- an or after October 1. 1997 for on a date theroaftsr dot eruin" by the Authority, it the Origination Pentad and or rt i i i s i t ion Period for the series A Sonde are amended •a pt�riAtd itt t lt.- I t� i� r ; t u i p + , to sddit ion+ , 1 on nay date too am o! U0Wv feeber t W embed t t owe t ne sale of N I IOeR 1 t tatM i M decor I t ii t6 rrdeoMoouett a of t he Oswer" Pie& the &Wd /re ! iaelWa� tits ftiaclpal iaeroyamt . tis 1witof"a "as=& am tis Steens rot 0AWS"U . 01e t+ragr 00 !W ami tr Wet• Prr M14% UN ai11 to the 60,1040 A 1r ar e+t�` tr a0prystl � &NAWWW t to ��ti �� 0I40 tar � a� �~ llYat+M Ame amid mm�r�4&lA9Mir iRg s~r- 4" a� wmst� _ 1 Amount and e t he i u n-; t , a :i , i Prograa Rxpens*s , t ho -ries A bonds *hall be I !'dermpd f r C -n sl7( 11 ->n-ye for f It tat her sr-mirces in amounts equal to Auc h m<-npyr,) i1 the next date for which notice can be given, in whale, at a 7-1eeption prigs equal to lool of thy! principal amnlint t )1-tF(-,f , without prealuw, plus accrued inte"at to the Iedrr-1)tion datf- . It is possible that a substantial portien of the Series A Bonds may be called for Mandatory Red*,rptir.•n without prfamius because of Principal Prepayments and Excess Revenues Frans€err9f from the ,.eneral. Fund pursuant to the Indenture. See additional riakR discussed under. "PROGRAM ASSUMPTIONS AND BONDHOLDERS' RISKS" herein. OPLiclial R !, ion. (i) The -Series A Bonds r°aturing on or after October 1, 2006 are f_.ublec-t to redemption, at the option of the Authority, in whole or in part, on any date on er after April 1, 2006, in milli -num aggregate principal amounts of $100,000 .end integral mu 1.tipl,es of $5,000 in excess of $10o,o00 At: the redemption price (expressed as percentages of principal amount) Set forth below, together with accrued interest to the date of redemption: Redempt ic?n Bs3i�Li.=u_.L_,aS.,t __ i rids April. 1, 2006 through March 31, 2007 1021 April. 1, 2007 tti cough March 31, ; 006 101 April 1, 2008 ar;i thereaf.ter 100 (ii) The " i i e: A B ,nds may, it the direction of the Aut.horit y, t f� r (a: f3rrfA in whole at illy time on of after April 1. 2000 at the red( -pt iun pi ices above, if paoeeeds of the sale of the Serien A Mortgage Certificates pursuant to the indenture together with certain other rar>neys on deposit with the Trustee, will be s-uf.ficient to aedeem all of the Bonds in accordance with the l ndant. urr and to pay redemption premiums. if any, expenses of such i—Jemption, and any unpaid Trustee Pass and expenses and Rabat* Aanr;unt . see "M INITPffTURS - Lei scharge of Indenture• herein. (iii) At the direction of the Authority, the Settee A Bonds soy tar redeeaand in whole or in part on any data, without premium, tram moneys iaweeted under theaapppplicable Investment Agreement in the event of a d*tault by the applicable Inw*tsisat Agreement Psanidss under WA* Investment Agrommont. all as provided to the Indenture ftere *hall be no optional todnapt rax of the settee A Bae& to Itt to the Indenture. airless tis rgwmoe ams prevtAsd tanto a cid Ii+ C*" at t Cata "Seal@ UW 11"mi rwootm re" I n d bw• e to atlaRata the thea c+t moot M A4 as t` MIaM a •oafs 't` estas r1► amoclustvelam arty t,�nes am* oar Flaw CamIt tette to ri aae■ra,t "a wi tb apt sa- edd las at tis Serum a Oosr tier r i� r o • . t i . H JON . iT 1. Isis Mrd' 1 4raw as 1 asoriarL"T 1"dow &,oe to Net a mW von1r ez 6 `-a1i0r, A Banda) at a 1Q"Ption V?-- —T,-11 to 1001A of the W inc-il-,a1 xffx-�unt t_ht-Te •,t plus accrued irt{ I��t. themon. without ;)' -Mi I7m, rl the dat ps ar,ci i n the. principes l -1 ^ ;nt0 Det forth below: rsPl'jrs A P -If] f< N,:1t1,1 ir,'3 1,j,1 4/1/2007 10/1/200'7 4/1/2008 10/1/2008 4/1/2003 10/1/2003 4/1/2010 10/1/2010 4/1/2011 1.0/1/2011 4/1/2.012 10/1/2012 4/1/2013 10/1/2013 4/1/2014 10/1 /20 14 4/1/2015 10/1/2015 4/1/2016 10/1/2016 4/1/2017 10/1/'20,17 4/1/2028* ��.. _fie___ •�'lil�� Mat11I'1Ly' Principal fit$ $ 225,000 230,000 240,000 245,000 255,000 255,000 270,000 280,000 -90,000 300,000 310,000 320,000 330,000 345,000 3S5,000 365,000 380,000 395,000 405,000 42.0, 000 435,000 450,000 465.000 Series A Honda Maturing April 1. 2022 Principal 10/1/2014 $ 440.000 4/1/2019 4ls.000 10/1/2011 s1s.000 4/1/1020 SJS. sos 1u/1/2020 sss.4N eft__ v 19 1► -ti-a A ids Maturing April 1, 2024 *Fina] Maturity -rie!, A Bonds Maturing? April 1, 202.`_1 Principal i:3its HW 10/1/2022, S 640,000 4/1/2023 660,0O0 10/1/2023 685,000 4/1/20244 710,000 *Fina] Maturity -rie!, A Bonds Maturing? April 1, 202.`_1 *Fina R -11 it.y To t ll- -Xt stat that any Principal subject tO mandatory 10/1/2024 735,000 4/1/2025 765,000 10/1/2025 7301000 4/1,/2025 80,000 10/1/2026 850,000 4/1/2027 880,000 10/1/2027 310,000 4/3/2028 445,000 10/1/2028 980,000 4/1/2029' 11015.000 *Fina R -11 it.y To t ll- -Xt stat that any Series A Bonds subject tO mandatory ai nr i IIq f -ljw� cede motion have been previously Called for redmW ion 0 r F -) r' . I „� ' ' (1, and have been pa Id f roe an source other Llai fits t t -m c a moi d t. (- y sink i ng fund ont s . eacb shall mandatory sinking fund a f�'e n t for such Series A 8onds be meed on a reasonably pttl(--.iiat_e basis. ±'t a, I tO each such mandatory slaking fund redsepttan data. the Trust pV w i 1 lbpraced to select for lao 1 by lot is soft�*Rr as tics f=ee My de temtoes t;m • i Outstay 4852.5 • MOOds emb),ect to <AapfsatO=y stOkiog rm" rsdwpt"O. m amenet OC seidr 2542815 A 0eseds sepal to the mate pst�rripal mmmt of � Malde eeAra Ob with oetl•taey statctag 9%WA ps�eta e. aid rail •all emob e1er t.e ger A rree for "sdrsot tae era the ass[ tstesest Amt w I - "d it we •ot tae of seer aal l ml see! Me%aa♦t4■e gs "w a mm t r "atee a SWAM ate to an •rimed • worst •t • toomm" tw daas 1 and acus• mdw �eI tore 4A*m* ammovae to •■emea OJOU SO W 0 40 mcneys), the Series A Bonds to be re<iye�d shall be selected on a prcporticnate basis as described in the next succeeding paragraph; provided that the outstanding Series A Bonds maturing on April 1, 2018, April 1, 2022, April 1, 2024 and April 1, 2029 shall br treated as a single maturity, And moneys attributable to suf—h single maturity shall be applied first to the redemption ratably of the Outstanding Series A Bonds maturing April 1, 2018 until su-:h Series A Bonds have been paid in full, then to th, redemption ratably of the Outstanding Series A Bonds maturing on April. 1, 2022 until such Series A Bonds have been paid in full, and lastly to the redemption of the Outstanding Series A Bonds maturing April 1, 2024 and April 1, 2029, ratably. In the event. the Series A Bonds are to be recl-emed in part as a result of a redemption described above under "Uotion Rede n i-Qn" or "Special the Series A Bonds to be redeemed shall be selected on a proportionate basis from among all of the remaining maturities of Series A Bonds then Outstanding, and by lot within a maturity. In order to effect redemptions of less than all of the Series A Bonds, the Trustee is required to assign to each outstanding Series A Bond of greater than $5,000 denomination, a distinctive number for each $5,000 of the principal amount thereof, so as to distinguish each such portion from each other portion of the Series A Bonds subject to such redemption. For purposes of determining Series A Bonds or portions thereof to be redeemed within a single maturity the Trustee is required to select by lot, using such method of selection as it shall deem proper in its sole discretion, from the number of, and the numbers assigned to, such Series A Bonds. Series A Bonds (or portions thereof) to be redeemed as a result of an optional redemption ,hall be redeemed only in minimum aggregate principal amounts of $100,000 and integral multiples of $5,000 in excess of $100,000, and mandatory redemptions, in part, shall be in minimum aggregate principal amounts of $25,000 and integral multiples of $5,000 in excess of $25,000. Otherwise, Series A Bonds (or portions thereof), may be redeemed only in a principal onount equal to ,$5,000 or any integral multiple thereof. Redemption Notice and Payments Zxxx pt .A,. + 1,:.! wi as provided herein, not ice of the cal l for any red�olptivt+, r:+ itying the bonds or portions thereof to be redssswd, sfia 11 be given by the Trustee by mailing a copy of the redrpiLon notice by tirst-class mail (postage prepaid) (registered or vsRitied sail, as to owners of at least Sl,000,000 in principal atmuat of the 9onds) not more than 4S days and not loss than l0 dsys pridC to ttw date tined toy redempt$on to the registered aloes d a deb bel! to be redeemed in tubo 1 e or In part at t hs address d Wtil an the rapist r at 1 on boots as 1 nt a i nod by t he rnotes . /as lust to give slob not i ce by me I I I nq t o any eondho l (Sot. ave aq dD110 t t6mmin, ill not *tto" the validity of an praoMo diew tot to p0�tlos of any other /uses Any bodlwlAtr oletsd at tort ave ,N: V principal SWOM.t of am* man" MW tha a ribber OW d t1M "A too 01 re+dowotUn be sow to a ssea>s,A addresti moneys), the Series A Bonds to be iedeemed shall be selected on a proportionate bards as described in the next succeeding paragraph; provided that the Outstanding Series A Bonds maturing on April 1, 2018, April 1, 2022, April 1, 2024 and April .1, 2029 shall be treated as a single maturity, and moneys attributable to such single maturity shall be applied first to the redemption ratably of the Outstanding Series A Bonds maturing April 1, 2018 until such Series A Bonds have been paid in full, then to the redemption ratably of the outstanding Series A Bonds maturing on April 1, 2022 until such Series A Bonds have been paid in full, and lastly to the redemption of the Outstanding Series A Bonds maturing April 1, 2024 and April 1, 2029, ratably. In the event the Series A Bonds are to be redeemed in part as a result of a redemption described above under "Optional Redemption" or "apgci:l Mandatary Redemption," the Series A Bonds to be redeemed shall be selected on a proportionate basis from among all of the remaining maturities of Series A Bonds then outstanding, and by lot within a maturity. In order to effect redemptions of less than all of the Series A Bonds, the Trustee is required to assign to each Outstanding Series A Bond of greater than $5,000 denomination, a distinctive number for each $5,000 of the principal amount thereof, so as to distinguish each such portion frcm each other portion of the Series A Bonds subject to such redemption. For purposes of determining Series A Bonds or portions thereof to be redeemed within a single maturity the Trustee is required to select by lot, using such method of selection as it shall deem proper in its sole discretion, from the number of, and the numbers assigned to, such Series A Bonds. Series A Bonds (or portions thereof) to be redeemed as a result of an optional redemption shall be redeemed only in minimum aggregate principal amounts of $100,000 and integral multiples of $5,000 in excess of $100,000, and mandatory redemptions, in part, shall be in minimum aggregate principal amounts of $25,000 and integral multiples of $5,000 in excess of $25,000. Otherwise, Series A Bonds (or portions thereof), may be redeemed only in a principal amount equal to $5,000 or any integral multiple thereof. Redemption Notice and Payments Except as otherwise provid+7d herein, notice of the call fox any redeapt.ion, identifying the Bonds or portion., thereof to be redeemed, shall be given by the Trustee by mailing a copy of the redemption notice by first-class mail (postage prepaid) (registered or certified trail, as to owners of at least 51,000.000 in principal amount of the Bonds) not more than 45 days and not less than 30 days prior to the date fined for redemption to the registered owner of each Bond to be redeemed in whole or in part at the address shoran on the registration books maintained by the Trustee. /allure to give sucft notice by mailing to any bondholder. or any defect therein. shall not affect the validity of proaeedin" for the rrdwpt[taa of any other Bonds. Any "I -6 ider owning at least $1.000.000 in principal amount of such moo" way reawet that a ssoona mop/ of the notice of rsdseptSon be sent to a sectaM address provided to the Trustee in writinl prior to the Record Date for such iede^ption. The notice of redemption shall set torth the cc-plete title of the issue (including series designation), CtISIP nun,Ler, the date of the issue, Bond numbers, interest rate, maturity, the date fixed for redemption, the redemption price to be paid and, if less than all of the Bonds of any one maturity then outstanding shall be callod for redemption, the distinctive numbers and letters of such Bonds to be redeemed and, in the case of Bonds to L --e redeemed in part only, the portion of the principal amount thereof to be redeemed, and the place or places of redemption, includinq the name, address and phone number of a contact person. if applicable, such notice shall provide that redemption of the Bonds is conditioned upon eligible funds being available for such purpose on the date of redemption. A second notice of redemption shall be given on the 60th day after the redemption date in the manner required above to the registered owners of redeemed Bonds which have not been presented for payment by such 60th day after the redemption date. Any notice mailed as provided above shall be conclusively presumed to have been duly given upon mailing, whether or not the owner of such Bonds receives the notice. Not later than the Business Day prior to the date fixed for redemption funds shall be deposited with the Trustee to pay, and the Trustee is authorized and directed to apply such funds to the payment of, the Bonds or portions thereof called, together with accrued interest thereon to the redemption date and expenses in connection with such reds -motion. Upon the giving of notice and the deposit of funds for redemption, interest on the Bonds or portions thereof thus called shall no longer accrue after the date fixed for redemption. No payment shall be made by the Trustee upon any Bond or portion thereof called for redemption until such Bond or portions thereof shall have been delivered for payment or cancellation or the Trustee shall have received the items required by the Indenture with respect to any mutilated, lost, stolen or destroyed Bond. Purchase of Bonds in Lieu of Redeagtion if directed in by the Authority, the Trustee sha11 once, an a data which is no earlier than ninw-ty 00) days prion- to a sinking fund or mandatory redemptions data: and no later than sixty f401 days prior to such date. by conta:.�ting at least thr!o regLatered Droner/dealers in Florida municipal Dodds. fol tI- puspose of determining it such registered broker/dealers (it h<tv. quads Whtcb they desire to sell, or (ii) have customers who .1..- it c two Sell goads; it such is the case, the Trustee shall endeay.,s (it to apply woneys in the General Fund held for sinking fund - -1 ilytioa an such sinking fund redemption date to the purchase of !bads eub act to redemption on such sinking tend redemption date and 'yiif to apply morwrye sn tYx prinripa1 arrcmni which are then h►ld f.t apn-li .a° r. h, r.+-,Y..tr,ay r• -i :+1 .. +! !a.r3a >f a - nig , .1 _ ,� �: :. ]::; I:�. •ai .. i .t l..t an. such Bonds shall be canceled anti the amount of such sinking fund redemption pa} -'trent or mandatory ied,mptlon amount, as the c=ase may be, shall thereupon be reduced by the principal amount of such Bonds so purchased and canceled on the date of such redemption as the case may be, of such Bonds so purchased and canceled, provided that no such Rond.s shall be so purchased within the 30 days next preceding the sinking fund payment or mandatory redemption cute. The price paid by the Trustee (excluding accrued interest, if any, but including any brokerage and other charges) for any Bond purchased pursuant to this paragraph shall not exceed the principal amount thereof due on the date of such redemption; the Trustee, at the Authority's direction, shall also pay (from the General Fund) accrued interest, if any, on any such Bond to the date of purchase. Subject to the above limitations, the Authority may direct the Trustee to purchase Bonds at such times, for such prices, in such amounts and in such manner as the Authority in its discretion may determine and as may be.. possible with Cite amount of moneys available in the principal Account or the General Fund, as the case may be. THE SERIES B BONDS Description of the Series B Bonds The Series B Bonds will be dated the date of their authentication and delivery, and shall bear interest at the interest rate set forth on the inside cover hereof from their dated date to, but not including, April 1, 1997, or to such earlier Business Day on or aft=er January 15, 199"7 designated to the Remarketing Agent (as defined below) by the Authority as a mandatory tender date (a "hfandatory Tender Date"), as described below. On and after the Mandatory Tender Bates, the Remarketed Series B Bonds shall bear interest at the rates established at the time of the remarketing thereof. Interest on the series B Bonds is payable on October 1, 11996 and on April 1, 199'7 or on any earlier Mandatory Tender Date. rcm and after any t?aud.ttuiy 'render Date, interest on the Remarketeri. Seiic-s B Bonds will be p,,y.tble on April 1 and October 1 of each year in which the R�.marketed S.11 ies B Bond:: are c,utstandin"3 as prcvid,sd in thy• 111,1-10111e. This Official Statement is not intended to provide any information to prospective owners of the Remarketed Series B Honda after the Mandatory Tender Dates. Purchasers of Remarketed Series B Bonds after the Mandatory Tender Dates should rely on offering materials made available by the Authorit=y at that time. Date or, in the case of a proposed redemption, the date of selection of Series B Bonds to be redeemed. Holders of an aggregate principal amount of at: least $1,000,000 of Series H Bonds may arrange for payment- of interest thereon by wire transfer as provided in the indenture. Pledged Revenues The Series B Bonds which have not been remarketed shall be secured by the Series B Pledged Revenues, as defined under the heading "DEFINITIONS OF CERTAIN TERMS." On and after the Mandatory Tender Dates, any Remarketed Series B Bonds which remain outstanding will be secured on a parity with the Series A Bonds by the Series B Pledged Revenues and the Series A Pledged Revenues, as defined under the heading "DEFINITIONS OF CERTAIN TERMS." Maturity Schedule The Series B Bonds will mature not later than October 1, 2029, as provided in the Indenture. The principal of the Remarketed Series B Bonds will be payable in accordance with a maturity schedule that will be determined as of the respective Mandatory Tender Dates in accordance with and based upon the following assumptions: (a) The Mortgage Loans to be originated and pooled into GNMA Certificates and Fannie Mae Securities purchased with the proceeds of the Series B Bonds (the "Series B Mortgage Loans") are assumed to have a term of 360 months and will be pooled into GNMA Certificates and Fannie Mae Securities. (b) The Series B Mortgage Loans will be originated on the date which is 42 months after the date of issuance and delivery of the Remarketed Series B Bonds. (c:) The maximum number of. Series B Mortgage Loans which bear interest at the highest allowable rate that may be originated under the Program will be assumed to l--- originated. (d) The Seri"s B !e:ortgage Loans will be assumed to prepay at a rate of 0% FHA Piepay-zu=nt. (e) T);,. iz;o;-,n :schedule will provide eemi-annual debt service pay +*_r,r.:; 04 pi ncipAl amounts which, on a ptoportionats basis, appy<..rjmat,:.y )::,I the total principal and interest receipts ler,,: ....lvi<-i .-; !,es awl r>:<ass Service Pres frac the series S mortgage 1,4ris .n a eeai annual basis, rounded Up or drib to the Dearest $5,000 integral. (t) The asortisatioa schedule can M derived t.n oonsecutivo aerial maturities sad one or more term maturities with mandatory semi-samual siakimg fund redssption payments, as Set forth to the ladent ure 12 Mandatory Tender provisions The Series B Bonds are subject to mandatory tender for purchase in whole or in part. (without any right to retain) on each Mandatory Tender Date at a purchase price equal to 100% of the principal amount thereof, plus accrued interest, if any, from proceeds of the remarketing of such Series B Bonds and other moneys available therefor tinder the Indenture and will bear interest to and including the day preceding the applicable Mandatory Tender Date at the rate of 3.65$ per annum. Series B Bonds in an amount designated to be subject to mandatory tender are to be purchased at a purchase price equal to the principal amount thereof, plus accrued interest to the Mandatory Tender Date. If the conditions for the remarketing of a Series B Bond, as set forth in the Indenture, are not satisfied as of any Mandatory Tender Date which is prior to April 1, 1997, such Series B Bond will not be purchased and will either be redeemed on such Mandatory Tender Date or be returned to the owner thereof, who will be restored to such owner's original position. The Mandatory Tender Date for the Series B Bonds has been established as April 1, 1997; provided, however, the Authority may designate any Business Day prior to such date and after January 15, 1997 as the Mandatory Tender Date for al'_ or a designated portion of the Series B Bonds then outstanding, upon not less than thirty- five (35) days' notice from the Authority to the Trustee. The Trustee will mail notice of a Mandatory Tender Date occurring prior to April 1, 1997 to the registered owners of Series B Bonds subject to such mandatory tender not less than thirty (30) days prior to such Mandatory Tender Date, Any Series B Bonds subject to mandatory purchase on a Mandatory Tender Date not delivered for purchase to the Trustee on or prior to the Mandatory Tender Date ("Undelivered Series B Bonds") for which there has been irrevocably deposited in trust with the Trustee by the Remarketing Agent the purchase price equal to the principal amount of such Series B Bonds plus accrued interest to such Mandatory Tender Date, shall be deemed to have been tendered and purchased on the Mandatory Tender Date, whether or not delivered for purchase by the owner thereof and the P.ondholder thereof shall have no right to retain its Bond. Holders of Undelivered Series B Bonds shall not be entitled to any payment (including any interest to accrue on or after the Mandatory Tender rate) other than the principal amount of such Series B Bonds plus accrued interest to such Mandatory Tender Date, and said Holders _,.All no longer be entitled to the 1— nefits of the Indenture, xc,pt for the purpose of Payment of the purchase price (equal to he principal amount of such Series S Bonds plus accrued intereat o such Mandatory Tender Dstel. Ysiot to the remarketing of the Series b Bonds -n the WOMI& CWT Tender Date. the Authority must deliver to the `trustee iii executed counterparts of an origination agrew.nt, a m:pgcas eds"totrati-ow and servicing agrswrt an4 a I) 40 S,:i,t 111 C -,-Tit to the Indenture reflecting, among other int i -at It n, t h- Interest rate on the rioarkated Series B PrnIs as wall as the maturity dates and amounts; (i i ) an rg- ri)-n of counsel for the Authority stating that the _�uyl,lemental indenture, the oriclinatic,n agreement and the program administration and servicin agreR ent have ttwor, duly authorized by the Authority and th— quppler�.ental indRnturoP, the oricrinaticn agreement and the grogram administration and servicin'a ayree"Amt. have been Px,< cuted and delivered by the Authority and, asrming proper Authorize. ion and execution by the other- parties thereto, the Indenture, the origination agreement and the program a6ministration and servicing agreement are valid and binding agreements, enforceable against the Authority in accordance with their terms (subject to any applicable bankruptcy, reorganization, insolvency, moratorium or similar .law affecting the enforcement of creditun s' rilrhts generally) ; (iii) 11; opinion of Bond Counsel stating that the establishment of the interest. rate on the Series B Honda; and the execution cf the supplemental indenture have been duly and validly authorized, that the supplemental indenture is a valid and binding obligation of the Authority, enforceable against the Authority in accordance with its terms (subject to any .applicable bankruptcy, reorganization, insolvency, moratorium or similar law affecting the enforcement of creditors' rights generally) and that the reset of the interest rate on the Series B Bonds and execution and delivery of the supplemental indenture will not adversely ,affect the exclusion of interest on the Series A bonds or the Series B Bonds from the gross ancone of the recipients thereof for federal income tax pu r poses; (iv) final cash flow schedules and a written opinion of err independent certified public accountant or fire of ;ndPpendent certified public accountants, experienced in such n.st.t.ers verifying the *athesiatical accuracy of the computation of the yields on the Series B Mortgagee Loans and on the Bonds and cash flows on all ouch schedules; (Y) a copy of each investment agreeesnt to he executed in connection with the ton6arkettag of the Series B Bonds along with opi n i ons of ccxn%se I to the pe ov i der (s) tbs. f ; rr.# ; rmat ion f con the Rat inq Agency that tbs 3 er' .: r, , .:.j , t be Series B Bonds will not advelemly affect t tse r at a.,,i 3 ?�w rH`r =-s A Banes and evidseae toot tin Meries B Banes Hells be- . . "Rea • ry t M Ret Ing A4ssry 4 OW 8JMdMtOry TOMMOOt sit 0. f tr PUI TINpp+t 1 c7 Of UMP `NM • •sAV ns abet& be PGW fem anorwte psowtded by tbs Beawft"ab! ls� :pie t~� 0 l" OMPAN ewe � 1. S"16 t 14 incMandatoryluding, the andatory iffier Date. In the sweat that all or a portion of the Bar iso B goods are not FOM&CRetod 00 the Madatory Tender Hate, the redemption price of such Series 9 90ods shall be paid frow am-)unts on deposit in the Series 9 ProC690 Pilid aid the selie_s B subacevunts in the 0eneral Fund atxi the 9Wd Ptud aild in the progtr" Bxpense Fund and Rebate Fl;nI, a!4 available. RedoWtion Provisions Rei PmP iLn Qu Ld IY1;'r__LQ t�i� �id2ldi°yylZi__-Ts+z:dQt 13 ("nIiLnol Aedemtic'- (i) The Series B Bonds which have nit been ter,civred and remarketed on any M.and:3tory Tender :late may be redeemed, at the option of the Authnrity, in whole or in part, on any date on or after January 15, 1997 through and .including April 1, 1997, from any moneys made available for such purpose, at a rode^ption price equal to the principal amount of nuc -h Series B Bonds or portion- hereyof to be re:dee^ed, plus accrued interest, if any, to this red- mpt ion date, in minimum principal amounts of $5,000. (ii) The Se;ies B Bonds may be tedeemed at the direction of the Authority, i.;; whole or in part on any date, without premium, from moneys in h— Series ii proceeds Fund in the event of a termination of ti;e Series li Investment Agreement as a result of a default under- the Series A investment Agreement. prier to the Mandatory Vander nate, there shall t- W) partial optional r£>.dr-rption or purchase of the Series B Bonds unless the Trustee is provided with a Cash Flow Certificate. The Trustee may conclusively rely upon such Cash Flow ('-ttifiCate in connection wit)t a partial opti )nal redemption , r 1,111-e lease of Series 9 Bonds. ,y�r,�rairal Mandatory .ten +-_;;. t.= Series 6 Bends shall be tedeF.* d cn 1q)ri 1, 1997. to the • xt• r r such Series B aot�ds have not F,rc-n remark -l -ed an or prior to such date. No notice of such tnandatozy reder..l:tion toned be given. Ont iQnrl RJMdM -`tea. (i! The Remarketed Series 9 Bonds r.,.0 ur i ng an or atter October 1. 2007 shall be subject to redsyt IOU t ,m source of available funds. at the option of ttae Authority P= in the InS Kure, in his or in part. =xe any date an ..!taw April 1. 2007. in alajame eggre"ta prin:-spa► amounts of 1'C" Me and iatsgral ares ip l es of 6.000 in esNw a of S 100 . �D oo at be redelptles prices (sarslroesmed as oeromtagas t ps incipal es 40WAStet t to tB below. together wit0 bec'swrsdd 1[.'areet to the dsts of redse rt ice ; It Redempt i c n ('* x i c•Jfs _1DAI-es _-ISiS: I usyal April 1, 2007 through March 't1, 2008 1021 April 1, 2000 through Maxch 31, 2009 101 April 1, 20o,� and thereafter i00 (ii) Th^ Re^+arketed Series B Rol -,is r -ay, at: the direction of the Authority, bP redee*ned in whole at any time on c:r after April 1, 2007, at the rt ciempt.icn prices provided in subparagraph ( i ) above, if. proceeds of the :;alt: of Series B G1YP4A Certificates ani Fannie Nae Securities, together with other moneys cn deposit with the Trustee, will t-ae sufficient to redeem all of the Series B Bands in accordance with the Indenture and to pay the redemption premium, if any, expenses of such redemption, and any unpaid Trustee Fees, Authority's Fees anti Rebate Anounts (as defined in the indenture) - The Trustee is per -fitted to sell the GNMA Certificates and Fannie Mae Securities cny as provided in the Indenture. See "THE INDENTURE -- Discharge of title Indenture" herein. (iii) At the d_rection of the Authority, the Remarketed Series B Bonds may be retl•emed in whole or in part on any date, without premium, from money.= in the Series B Acquisition Fund in the event of a default by the series B Acquisition Fund Investment Agreement Provider under the Series B Acquisition Fund Investment Agreement. Nandato_1 �d<, ion. The Remarketed Series B Bonds shall be subject to mandate:ry iederption in whole or in part in minimum aggregate principal amounts of $25,000 (except as otherwise provided in the Indenture) and integral multiples of $5,000 in -xces€a of 125,000, .at a i-demption price equal to 100% of the principal amount thereof, without premium, plus accrued interest to the date of redeeeption from and to th•- extent there are deposits in the series B subaccount of the I'rinci.pal Account from Principal Prepaysnent.s and Excess Revenues (or from other sources as provided in the Indenture) on any Interest Payment Date on or after a date or dates specified in the Indenture. In additi(in. if c.;i any data the sun of money (other than moneys derived fres th- sale of tiortgage Certificates) on deposit in the subaccounts of the General Fund. the Bond Fund iancluding the Principal Account, the Interest Account and the Reserve Account ttorain), the ps :r.,to Bqpense Fund and the Rabata rand solely r-elat ing to the a i ids, equals or exceeds the aggregate principal amount Ito outstanding Bottom a sonde plus uWaid accrued intereas + rr:r rsdsspcLon date plus the accruedmId Trust** r # , . 1 , :.w ;•w a" Author it y /gee any unp ld halm d be redevvA f :,, ,stAck wossya 409 true other soitroes to mmp other peal to sus* moony e ) as t most date tog rots! sot Eos ems be Is~, is goal*. at a re4Wpt6as P6soe Aral to toN ed the P: saciprl sW104400t thereof- Witk"t Ptesuase, Plus Seer"od ►atereW to t00 rafttos date TWO esus( sat ed 006 600 p rmi M"l l In ewb)om 1 u a ft"ON'Locy a tam to aArslo mr 40 rrt at a 16 redemptim price equal to 100% of the principal aw.>u<t thereof. without VTOR O, Plus accrued interest to the dote ofion an the series B Special Mandatory Redemption Data (as dsfi in the Indenture) from asiounte ininq in the Series R Acquisition Fund created pursuant to a supple"ntal indenture for from Other source, in an mount equal to such re -wining twaneys) which were not used to purchase GNN.A Certificates or Fannie ?!ae S-,±curities, all as provided in the Indenture. The Series R Term Bonds are also subject to mandatory sinking fund redempt.ion in part (including portions Of Bonds) at a redemption price equal to look of the principal amount thereot plus accrued interest thereon, without premium, on the dates and in the principal amounts set forth in the Indenture. Manner of Selection of Series B Bands for Redemption or Purchase in Part If ;:cries B Bonds are to be redee-.ed or purchased in part on or prior to a Mandatory Tender Date, the Series B Bonds to be 70 redeemed or purchased shall be selected by lot. Redemption and Mandatory Tender Notice Notice of any purchase or redemption of Series R B, -,-vis (other than a purchase or redemption on they Mandatory Tender Date of April 1, 1997) shall be given to the registered owners of any Series B Bonds or portions there -of to b<! so re -deemed in the manner describeA abovf-- under "THE `FRIES A F07N1.S -- Redemption Notice and Pay€ttents." Thf- Series B Itonds may be purchased in lieu of redemption as described above under "THF. SERIES A Purchase of Ponds in Lieu of pede-ption." ESTIMATED soUV=G AND USSs OF FNS The proceeds of the Solids, together with certain CIommAtment Fees paid by Participants, will provide funds for the Authority's Program and payment of certain costs of issuance relating to the 9ondsThe estimated sources and uses of fund with respect to the Bonds Are as follows: (UM rem t"d er apt this psve incest iasal ly 01aOt ) i• i..Gt I mAtad CLaZ61 aLjbwfia Principal A ut Of Series A Bcr is Accrued Interest Participants' commit—ent. Fees Amounts Derived fron Refunc rci Pnrld Indentures l'Iemium from ezl'ies }3 Invest-77ent- Agreer,ent. Provider Authority COntlib"tion Total Scurces For Deposit to the :aeries A Acquisition Fund For Deposit to the Prior Bonds Fund For Deposit to the Series A subaccount in the Interest Account(1) For Deposit to the Series A Cost of Issuance Fund For Deposit in the Series A subaccount in the Reserve Account Initial Fees and Expenses of the Authority and Other Local Authorities Total Uses $2S,970,000.00 102,419.44 234,218.00 2, I.`s0,000.00 175,000.00 $28,763,177.44 $25,970,000.00 2,250,000.00 102,619.44 285,)08.00 125,000-00 ,x',28, "163, 17-1.44 (]) Includes deposit of accrued interest in the aesourt $102,619.44. pr i of i p-,1 11Sa unt ,t Series B Bonds A-mr,uw...s Derived ttaft Retunded Bond indentures Authority C'kntrUntion ., .,I Sources ya«-f, .: , , } . + tr' series B �e�ooMds Md rot LK ! "Viso B Interest bfoesat !bt tx, the ►tier Bands And *tees to $12.385,000.00 4.660,000.00 1_naft a $17.046.000.00 ILa. JOS. 0M.M 1.9".96 a tea, W_Y i11.N�.�N.M .I 40 F.(.ix,7IY rnp IFit OnIfflo P1ecye Pursuant to tl,,, Ir:_lc ntute, the series A Bonds are secured by and payable fro"I the Series A Pledged Reventiee, consisting of, (a) (i) all payments of principal of :and interest on such Series A Mortgage Certific-ate,s (including any payments received from GYM pursuant to tl-m i,-im Guaranty and Fannie Map pursuant to it$ guarantee of payments on the Series A Fannie Mae Securities), (ii) amounts required to be delx)sited on t:hri Bond Delivery Date in the funds and accounts relating solely to the Series A Bonds held pursuant to the indenture, other than the Cost. of Issuance Fund, (iii) income or interest earned and gains realized in excess of losses suffered on Investment Securities, and (iv) all moneys, securities and fund=s (except amounts in the Rebate Fund, the Program Expense Fund and the Cost of Issuance Fund) held by the Trustee under the Indenture, and (b) after the Mandatory Tender Dates, all Series B Pledged Revenues securing Remarketed Series B Bonds, all on a parity with the Remarketed Series B Bonds. Series B Bonds are secured by the Series B Pledged Revenues, which consist of (a) as to Series B Bonds other than Remarketed Series B Bands, (i) amounts derived from the Series B Proceeds Fund Investment Agreement and (ii) all moneys, securities and fund_: (except amounts in the Rebate Fund, the Pro -gram Expense Fund and the Cost of Issuance Fund) held by the Trustee under the Indenture in the funds and accounts relating solely to the series R Bonds and (b) as to the Remarketed series B Bonds following the applicable Mandatory Tender Date, (i) all payments of principril of and interest on the Series B GNMA Certificates and Fannie Mae Securities (less the Servicing Fee and any applicable (excess Service Fee;, and any payrr.erat received from GNMA purl;cant to the GNMA Guaranty and from Fannie Mae pursuant to the Fannia= Mae guaranty and all other net prccpeds of such Series B 1;*� .a Certificates and Fannie Mae securities, (ii) aanounts required t- be deposited on the Mandatory T�rndF�r Date in the funds and accounts related solely to the Series B Bonds pursuant to the indenture (other than the Cost of Issuance Fu". the Rebate Fund and the Program Expense Fuad). (iii) income or interest earned and gains realised in excess of losses suffered otl Inve.stmmt Securities held in the funds and accounts relating soler to the Series B sonde lescapt earnings on the Program tManse Fen", the Rebate R1md and the Cost of Issuance Fund) , t iv) all some". seourit res and tuads lencept amounts in the Rebate Eyed, the Psogses ampellea Fund and the Cost of ire Fluid% W d t.y t tw Trustee wrier the Indenture in the wads and ac, r.lLsted aoleilr to the series a Bonds and (vl the Series A P. revenue* on a parity with the series A boasa. 'Plsresuee. are def Swed iA tln laidaatare to seas the series A 911=1arses" and the series • lled*ad &*vow~ . Ae dab, a , I I - - . . !ei t Aa eape sem "M i/[it>•!�i o t run" , " t.lr AtA i.,..r it) , - to It h• (NOW 460 8164 Data awarst a w.Aw a and Geri is it "the t w%da -- - - lsdMtsf'e ai isr t he !Wyss! -W y . • ri 1. .a of same" ar go invest—nt_sx shall nt,t t -e r0nPtr13Pd t_n creat_- arty separate security, benefit. cr i;rinrit_y of claim l:�tweer. Series ,,f the bonds, but i• to be observed for the sol(- putpc.se of astsxi!ttin7 the Aut.hrity and life Trustee in matching the teceipts in respect_ of each :Pries Of the Bonds with the pay--.nts and r -s de^}%t.i:ms nt suc-h Ser.e.s of W t; General T};e }34,nci together with int.erert thereon, are- not genera} r molal obligations of the Authority and do not constitute an obligation, either general or special, of the State or any yl of the Local Authorities (other than the Authority) or any po subdivision thereof, but are special limited otsligations of the Authority payable solely and only from the Pledged Revenues, as provided herein. such moneys are pledged and assigned as security for the payment of the Bonds and shall he used for no other purr.•)se interest and premium, if any, on th than to pay the principal of, e Bonds, except a:: t, the Series A may be otherwise expressly aut}rorized in t}t" Indenture, the series A origination, AgreEemen servicing Agreement and the Series A Program A dminisLration Agreement. The Bends shall in no event he payable from the general revenues of the Authority or the Local Authorities and shall not constitute a deb:, liability, general or rrroral obligation or a pledge of the faith or loan of credit of any of the Local Authorities, the state or any political subdivision thereof within the meaning of arty constitutional ox- statutory provisions;. Neither the Local Authorities, the state nor any political tubdi,rision thereof nor any Participant shall be l i abei tZ r{ut ofr anyirfunds e=vent shall such Bonds or obligations be p: y or properties other than those of the Authority, and then only to t_he extent provided in the Indenture. Neither t}re faith and credit nor the revenues or taxing power of the Iocal Authorities, the State or any political subdivision thereof, is fledged to the payment of the principal_ of thf. Rondo Or the interest thereon or other costs incident thereto. The Bonds are not a debt of the United Staten of America or any agency thereof, or of M or Fannie q,ae, and are not guaranteed },y the full faith and credit of the 1711it4-d Stat':; of America. TLe Authority has no taxing Power. Th- r*mediP5 available to the owners of the Bonds, upott the „,.< ux x Brace of an Event of Default under the Indenture or other d<,c>a to d cril3ed h rain, are in nasty respects dspendeat upon udiriai n and set.ions which are ottesr eabjict tom l Bd=i ms oto delay e•,.* ' pp, , ;v ,,v. As9l�li�"! t(= AND Et eke' hviaift. OunttN" re 4*e But bus : , ; w , 9 9 rreP►ise e+tii Mart teipont . as a Cellidtt ton to pan icipst&M to t&W sqram with respect to on 9ortse A fonds, to pay to CAW AKAOcity . oa=tit:srrsrt MM in COMMONas rytb Its tan fog to ori�JsMt.e is M axe WOM Mws1 to i . MN of it COMMON eta ' het at Wt or to 6"SA s Mecs*�&� ries as Mss �l its q0ft"We"tun" al l cess few to too � bSMI w wsita /+ad ow so WK r+e+twwlarie •� as 110 Mortgagors or sellers as Disc(nint and Origination FAes, as provid-A in the Series A origination Agreement. See "THE PR(Y.'FAM -- Tha Participants" herein. Additional Bonds In addition to Bonds issued to replace Bonds that_ have been mutilated, lost, stolen or destroyed and Series B Bonds remarketed on the Mandatory Tender Date, the Indenture permits the issuance of additional parity bonds payable from the Pledged Revenues on a parity with the Bonds in connection with a mandatory tender and subsequent remarketing of the Series B Bonds upon delivery to the Trustee of the items required to be presented upon remarketing of the Series B Bonds as described under the heading "THE: SERIES it BONDS -- Mandatory Tender Provisions." Reserve Account Moneys on deposit in the Series A subaccount of the Reserve Account shall be used to pay such regularly scheduled principal of and interest on the Series A Bonds on any Interest Payment Date on which there are insufficient monies on deposit in the Principal Account, Interest Account and General Fund for such purpose. In addition, moneys in the Series A subaccount of the Reserve Account may be used to pay accrued interest on the Series A Mortgage Certificates upon purchase by the Trustee on a Certificate Purchase Date. Amounts on deposit in the Reserve Account may be released from the lien of. the Indenture as described under the heading "THE INDEN`rURE -- Reserve Account." Investment Agreements Simultaneously with the delivery of the Bonds, the Trustee and Assured Return Management Corporation (thee "Series A Acquisition Fund Investment Agreement Provider") will enter into an investment agreement with respect to the Series A Acquisition Fund (the "Serik--s A Acquisition Fund Investment Agreement"), the Trustee an:_l Trinity Funding Company, LLC (the "Series B Proceeds Fund Investm,-nt Agreement Provider") will enter into an investment agreement with respect to the Series B Proceeds Pund (the •^aeries 8 Proceeds Fund investment Agrewant") and the Trustee and AIG Matched Funding Corp. (the 'Series A General Investment Agreement Prowider6) will enter into an investment agreement with respect to the Devise A subaccounte within the bond Pund. the Oeneral Fund, the I/t+ogras: $npenes Pund and the Rebate /tend (the "Series A General ta+wtment Agreement*). The respective Investment Agreements will ids for the establishment of fixed rates of return on anciunts with the respective Investment Agreement Providers. The MsisW A AoQnisitiaa Puaid Isvestmmat Agreement Provider will pay t an the amounts tmvested under the Series A Aoquisition VWW lawstamet Agreement at the nate of 5.490 per saws catt1 at least August : , 1 y1? . T2W ser see 9 V.'oOmmds Fuad Investment as ISO Agreement Provider will pay interest on the amounts invrjstr,ci under j,e the Series I3 Proceeds Fund InvC+stment ArIr'eetm-=nt at the rate of 3.70% per annum until January 15, 1997 anci 'It a rata of 5.451 per annum from January 1�,, 1997 to April 1, 1997. The Series A General Investment Agreement Provider will pay interest on the amounts invested under the Series A General Investm=int Agreement at the rate of 5.93% per annum for the term of the Serie: A Bonds. As set forth in the indenture, the Investment Agreements must be provided by or guaranteed by entities whose debt obligations, at aur the time such investment agreement is executed, must meet certain for rating requirements imposed b Mood q P Y Y's. Specific information Ioa regarding the Investment Agreement Providers may be obtained upon GUM request from the Authority. Ser red GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PROGRAM SER 8:d The sum,„nary of the GP1A1A Program, GNMA Certificates and other `�. documents referred to herein does not purport to be comprehensive Acq and is qualified in its entirety by reference to the GNMA Guide and use to the GNvA Certificate.,; and other documents for full and complete Mae statements of their provisions. GNMA is a non -stock corporate instrumentality of the United may States within the United States Department of Housing and Urban Uni Development ("HUD") with its principal office in Washington, D.C. °I'' which guarantees privately -issued securities backed by pools of mortgages (the "GNMA Pools"). der GNMA is authorized by Section 306(g) of Title III of the National Housing Act of. 1934, as amended (the "National Housing Act"), to guarantee the timely payment of the principal of, and interest on, certificate, which represent an undivided interest in a pool of mortgage loan:: insured by FHA under- the National Housing Act, guaranteed under Titles V of. the Housing Act of 1999, or guaranteed by VA under Chapter 37 of Title 38, United States ('ode. Section 30G(g) further )provides that "the full faith and credit of the United States is pl=edged to the payment of all amounts which may be required to be paid under ,any guaranty under this; subsection." An opinion, dated December 9, 1969, of air Assistant. Attorney General of the United States, states that .such guarantees under Section 306(8) of the mortgage -barked certificates of the type being delivered to ttia Trustee an behalf of the Authority are authorised to be mado by f2M and *would constitute general obligations of t_hr T,,nited states backed by its full faith and credit.' Goa cammltments 1n ,rdet to ,auaw thr issuanc•w of ®M Oe!l�ticates. ttw serv5re1 must fir:t ape } y to, arzf reeeew Cava* 4�, ooeie►t rat o to quaxar:tws s.: ,t s rr.: F tA+J1 .mnaemmbt 4111th is" Un erervIi'et t c 3 Hue (1:1Rp [`. r t ; ! i a' {. t a at at" aaomt Arslao a one rent ty peri.,d from the date of the cn it rent:. The Servicer is zejuirpci to advance the application fee to (;NMA for such commmitments. The amount of: commitments to guarantee GNMA Certificates that GNYA can approve in any federal fiscal year (october 1 through eptember 30) is limited by statute and administrative procedures. The total annual amount of ,available commitments is established in federal appropriation acts and related administrative procedures. No assurance can be given that in the future the Servicer will be authorized by GNMA's administrative procedures to submit a request for a GNMA commitment with respect to some or all of the Mortgage Loans, or that GNMA will have any authority remaining to approve GNMA Commitments during the federal fiscal year in which the Servicer submits a request for a GNMA Commitment. Bonds will be redeemed at the times and in the manner described herein under "THE SERIES A BONDS -- Redemption Provisions -- ial Mandatory Rod-mpti-n, " and "THE SERIES B BONDS -- Redemption Provisions - Special Mandatory Redemption" from amounts on deposit in the Acquisition Fund to the extent that such proceeds have not been used or reserved for the acquisition of GNMA Certificates or Fannie Mae Securities. The ability of the Servicer to obtain commitments from GNMA may be hindered by the current status of budget negotiations in the United States Congress. See "PROGRAM ASSUMPTIONS AND BONDHOLDERS' RISKS -- Funding of FETA Insurance and GNMA Commitments," herein. Series A GNMA Certificates Series A Participants have agreed under the Series A Origination Agreement to use their best efforts to originate, in compliance with the Program, Series A Mortgage Loans insured by FHA, guaranteed by VA or guaranteed by RECD and to deliver the Series A Mortgage Loans to the Servicer for purchase from the Servicer's own funds. Thereafter, the Servicer will package the Series A Mortgage Loans into GNMA Pools for the purpose of issuing Series A GNMA Certificate-s, and on Certificate Purchase Dates the Trustee will purchase with mon,2yra from the Series A Acquisition Fund, in accordance with the provisions of the Indenture, on be+h_alf of the Authority, the Series A GNMA reitificates. Bach SeriF.-:c A QNHA Certificate will bee hacked by a G.WA Pcxal consisting eatit,-ly Of 1ew-1 Payment series A Mortgag" 7a:.,n•a with the same Paso Thrf•a rh Rat*, in a total minimum principal amount of $250,000. The t.,*il principal amount c f any i ,t u._ of Series A GNPA Cort it i.-.,t,.. ..1 11 not OXCAMd the aggregat. unpaid principal balance of tht- b:=r I--a A W, rt gaga Losxxs in the GNMA Pool backing such issue. Each Series A cox Cert .f icate will be a 'tully sod. f : i r4mm- thrOugh' security which will require the Servicer to pan ILto the Trust" tbo tegulas monthly payamts on tth isq "o"we" Loans floss contain servtctnq costs and GWV1 +sarasty !ws seed., sn cw2244r, cases, iscuss servtes Fees', whattws ,1. , . ..a- .. n,frr!Vi -oI Am Mortgage Leans, plus .any prepayments of principal of the Mortgage Loans and liquidation proceeds in the event of a foreclosure or other disposition of any Mortgage Loan received by the Servicer during the previous month. Chemical Bank, as paying agent for U'NMA, is required to make monthly payments to the Trustee, an holder of the Series A GNMA Certificates, on the third Business flay following the twentieth day of each month with respect to Series A GNMA Certificates, all as provided in the Indenture. Upon issuance of the Series A GNMA Certificates, GNMA will guarantee to the holder of the Series A GNMA Certificate the timely payment of principal of and interest on the Series A GNMA Certificate. In order to meet its obligations under such guaranty, GNMA, in its corporate capacity under Section 306(d) of Title III of the National Housing Act, may issue its general obligations to the United States Treasury Department in an amount outstanding at any one time sufficient to enable GNMA, with no limitations as to amount, to perform its obligations under its guaranty of the timely payment of the principal of and interest on the Series A G>IMA Certificates. The Treasury Department is authorized to purchase any obligations so issued by GNMA and has indicated in a letter dated February 13, 1970, from the Secretary of the Treasury to the Secretary of HUD that the Treasury will make loans to GNMA, if needed, to implement the aforementioned guaranty. Under the terms of its guaranty, GNMA also warrants to the Trustee as the holder of the Series A GNMA Certificates that, in the event GNMA is called upon at any time to make payment on its guaranty of the principal of and interest on the GNMA Certificate, it will, if necessary, in accordance with Section 306(d) of Title III of the National Housing Act, apply to the Treasury Department of the United States for a loan or loans in amounts sufficient to make such payments of principal and interest. Each Participant has agreed under its; Series A Origination Agreement to originate, in compliance with the Program, Mortgage Loans insured by F11A or guaranteed by VA or RECD and to cif -liver the Series A Mortgage Loan_: to the Servicer for purchase from the Servieer's own funds. Thereafter, the Servicer will package the FILA, VA and RE(.D S-ric-s A Mortgage Loans into GNMA Pols tf)r the pu!pose of issuing Series A GNMA Certificates; and on Ci-rtiticate Purchase Dates, the Trustee will purchase the Serie: A GNMA (-,:ititicates. Bach Series A GNMA Certificate will be backed by a GNMA Pool consistinq entirely of level payment Series A Mortgage with the same Mortgage Loan interest rats. The total l.ri,;ripal amount of any issues :if Series A (AM Certificates will r"I "Y..- f ed the aggregate unpaid principal balance of the Series A Loans In t h- ('.?M 1 1 back i tag such team . "rvicing of th. .'.ri.s A irortgaQe Loans to be soft hetuesn the servicer -d A fe rY l c i n4 AareeYnt . the r ,• , !j.I r is tap the settee A mango" 44 Loans constituting GwA Pcolsa in accordance with FHA, VA or RECD regulations, as applicable, and GNMA re,m lations. The monthly remuneration of the Servicer for its servicing functions, and the guaranty fee charged by GNMA, are based on the unpaid principal amount of the Series A GNMA Certificates outstanding. In compliance with GNMA regulations and policies, the total of these servicing and guaranty fees equals 0.50% per annum calculated on the principal balance of. each Series A Mortgage Loan outstanding on the last day of the month preceding such calculation. The GNMA Pass -Through Rate is determined by deducting from the Mortgage Rate the 0.50% servicing and guaranty fees and Excess Service Fee, if any, because the servicing and guaranty fees and Excess Service Fee, if any, are deducted from payments on the Series A Mortgage Loans before payments are passed through to the Trustee. It is expected that interest and principal payments on the Series A Mortgage Loans received by the Servicer will be the source of money for payments on the Series A GNMA Certificates. If such payments are less than the amount then due, the Servicer is obligated to advance its own funds to ensure timely payment of all scheduled payments on the Series A GNMA Certificates. GNMA guarantees such timely payment in the event of the failure of the Servicer to pass through an amount equal to the scheduled payments (whether or not made by the Mortgagors). If such payments are not received as scheduled the Trustee has recourse directly to GNMA. The Servicer is required to advise GNMA in advance of any impending default on scheduled payments so that GNMA as guarantor will be able to continue such payments as scheduled in accordance with the GNMA Mortgage -Backed Securities Guide (the "GNMA Guide"). The GNMA guaranty agreement to he entered into by GNMA and the Servicer upon issuance of the Series A GNMA Certificates (the "GNMA Guaranty Agreement:") will provide that, in the event of it default by the Servicer, including (i) a request_ to GNMA to make a payment of principal of or .interest on a Series A GNMA Certificate when the Mortgagor is not in default under the Mortgage Note, (ii) insolvency of. the Stirvi.cer, or (iii) default by the Servicer under any other guaranty agreement with GNMA, GNMA shall have the right, by latter- to the Servicer, to effect and complete the extinguishment of the Servicer's interest in the related Series A Mortgage Loans. and the related Series A Mortgage Loans shall thereupon berme the absolute property of 01MA. subject only to tt++ unsatLstied rights Of the holder of the Series A aNM Certificates In such event, all parer and authority at the Servicer with respect to for servicing of such OWa Pools, including the right to collect ttu. *vrvitinq f— -also will terminate and espire. The authority r,; viosr under the terms of the QS Ouide will be passe t a" be Vested in QJM. and Q1 M will be the to all respects to tie sw"joer is its capacity as Sol v a 4,W1 , and wi l l be sebj• + t o at l a .1 too placed as the am - leer n by the GNMA C-uide. At any time, GNMA may enter- into an agro,e--nt vrith an institution approved by GWWA under which such institution undertakes and agrees to assume any part or all of such duties, and no such aq_r•CeTent will detract from or diminish the 1',e.sponsibilitres, duties or liabilities of GNMA .in its capacity as (,guarantor. Payment of Principal of and Interest on t;he Series A GNMA Certificates Regular monthly amortization installments on each Series A GNKA Certificate are required to begin no later than the month immediately following the date of issuance of such Series A GNMA Certificate and will be equal to the aggregate amount of the fbcheduled monthly principal and interest payments on each Series A 1,1ortgage Loan in the GNMA Pool backing the Series A GNMA Certificate, less the servicing and guaranty fee of 0.501; per annum of the outstanding principal balance of the Series A GNMA Certificate and less the Excess Service Fee, if any. The Series A P1ortgage Loans in the GNMA Pools will bear interest at 6.65# per Annum (except as otherwise described under the heading "THE PROGRAM — Interest Rates on the Series A Mortgage Loans") and the Series h GN"MA Certificates will bear interest at the Pass -Through Rate of 6.15% per annum, the difference being equal to the GNMA servicing And guaranty fees and the Excess Service Fees, if any. In Addition, each payment is required to include any prepayments of principal on Series A Mortgage Loans underlying the Series A GNMA Certificate and liquidation proceeds in the event of a foreclosure or other disposition of any Series A Mortgage Loan. FEDERAL NATIONAL MORTGAGE ASSOCIATION PROGRAM Wortgage-Hacked Securities Program Fannie Mae is a federally chartered and stockholder -owned itorporation organized and existing under the Federal National Mortgage Association Charter Act (12 U.S.C. 5 1.716 et sea._). (Fannie Mae was originally established in 1938 an a United States government agency to provide supplemental liquidity to the mortgage warftiet, and was transfntrr*-d into a stockholder -owned and privately managed corporation by legislation enacted in 1968. The Secretary a*f Rotolag and Urban I;rvelopm¢nt rxerciaes general rrqulatory power uwmr Fannie Has. panni* Mae provides funds to the ntoit:gage market ]puevhas i coq mor t gage 1 cares from lenders. thereby replenishing !t r fun" ?tor additional iendiag. Fannie Hae acquires funds to purchase mortgege loans tetaa marry capital market investors that may isnot ordinarily invest to moctgoge Ic-ns, thereby expanding the 'total amount of funds av atlable far h, , i nq . In addition. Fannie Mas iseseste b�scload eeomrit tel I , : mar t l y in emebaage for Iooele ce am , - SaLir tcvs Odes . Altfateo Un qualetser d the Ti r of the Suited itateg hes osemis M-sese &GOWT astlwrity ':ase abl iget iasis of JK 11lie Mae, neither the United States nor any agency or lltrumentality thereof is obligated to insural under th-7 I finance Fannie Mae's or assist Fannie c..��nfo€+a to tart CO't! ,ligations Mae in any manner. see 'THE pjtoOPAM• Fannie Mae has implemented -A mortgage-backed securities Communi-ty Now* Burl tinam pursuant to which: Fannie Mae issues securities backed by 1.t Pursuant to tl of moriaaye loans (the "MHS Program"). The obligations of tale Mae, including its obligations under Fannie January 1, 1995, Mae Securities, obligations solely of Fannie Mae and are not backed by, or Conventional Mortga $207,000 to be eli< iJtled to, the full faith and credit of the United States. Mortgage Loans eats The terms of the MHS Program are governed by Fannie Mae ling and Servicing Guides "Fannie value ratios not it under the Fool Pur (the Mae Guides"), as modified the Pool Purchase Contract (herein, defined), with loan -to -value and in the case of tG�age loans such as Series A Mortgage Loans, of primary mortgag a Trust Indenture erg as of November 1, 1981, as amended (the "Trust Indenture"), the Fannie Mae Gui' be acceptable to F, .a supplement thereto to be issued by Fannie Mae in connection h. each pool. The MBS Program is further described in a Under the Fc spectus issued by Fannie Mae (the "Fannie Mae Prospectus,,). The limitation for Seri t recent Fannie Mae Prospectus is dated January 1, 1994 and is of (1) the acquisit aged from time to time. home, or (2) the aF Copies of the Fannie Mae Prospectus and Fannie Mae's most rehabilitation. T' 951 where su'oordin exit annual and quarterly reports and proxy statements are illable without charge from Ellen Goldberg, Vice President a variance under t for Brltor Relations, Federal National Mortgage Association, 3900 Contract also provi Fannie Mae (,,—rminO :ionsin Avenue, N.W., Washington, D.C. 20016 (telephone: /"052-6724). be made from the r for and detetminil The summary of the MBS program :;et forth herein does not requirements for n :)nrt to be comprehensive and is qualified in its entirety by 'Fannie The Fool P;lzc- at'ence to the Mae Guides, the Fannie Mae Prospectus and ,either documents the Serie: A v tr•t referred to herein. the F.ar;ni,- bias' ,-.. L Purchase Contract Series A Fannie Ka IC is f!xpected that F.annir_ Mae and the Servicer will enter Sacci series A a Pool PurCharse Contractinterest ribs ^icol Purchase Contrast"), in a ap riaant to which the Servic_crr will ix- p,!rmitted to deliver, and Flt' Mae will by Purchased Fai+ agree to pure h:,:,.. <�c:rrventional Mortgage "no in nn mi€tained Pai dings for' Series, A Fanni,, Mal: Stec -unities. The purpose of the xeh seri" A Par Purchase Contract i:: lu provide for certain additions, tions and changes to t1,._' ;?S0,000. Tt- Cor Fannie Mae Guides relating to the- -lease of Conventional M<,rtgage famle rise se—rit Loans. in the event of a list between the pool purchase Contract and the Fannie Mae --m"ding *Tom FSCYM/ ime~ at 4,40.t I "'s' t hr Po*1 ft Ca>tttt rajc-t will control. The description Cort ' ntereat at 4.1%1 t h t,e i ov asr€e�s t h., t 1 t„ - r , .. ! Pur'chass Cunt r act v i l l be 41 i t ei irres Dat trate 'Itted subatantfaIIV !n + r..• 1, ;+entad by Fannia rias to the- rlivor as of t b. dat . ham•, , „t Fails&• Mrs wi 11 pencils.. '�.,`l•- .. ri igib�le iurdsa tka quadelioso set ' i -MTwOut itstlaI Stott Sage LOane F'at=r+; Mal, noith�, t trnitod States nor any o9v**cy or ,rip tt(;mentality then -f is c•t'ligate+d to finance Fannie Mme's ,4 14,44t iom or assi=t Fannin Mwo in any wanner. F atrniP Ma- has implenwnteri a wortg&"-b&cted securities t x �<at am pursuant to who i h Fanni- Mae isswrs securit ies backed by -I Mort r'aTR+ l at = (t hp yl :, prr,-at q-, 1Le obligations of Fannin Mae, includinq its obligAtfans Tamps Mss pities. aro- oblifaticns Aolely of Fannie Hae ar, i are not backed by, or «int itled to, the full faith anoi credit c,f tt,a ftited States. The tome of the KBS i°tugram ate quv-i ned by Fannie Kas SPI ] i nq and .cervicij; a guides (the •t+ =l* Mae rAjides•) , as modif led by the tool Purchase cont _tact (herein defined) , and in the case of mort.gage loans such as Series A Moi,tIi Loans, a Trust loidenture dated as of 1r'c."' 7,i 1981, as ascended (the "Trust. Indenture•) , and a sur plrm-nt t h-1 -t:o to be issued by Fannie Kae in connection with each pc -c1. The MRS Program is further described in a FezOPP-ectu ; isued 1_,y F--annie Mae (the *Panni* Mae Prosspectua•) . The moatt ec-ent. Fannie N,ae Pi ospect uc is dated January 1, 1994 and is updatwd from t] tf' to tir-:-. Cf-F,ivs .,f the Far.nic ?,,c,. 1°tospectus And Fannie Mas's most recent .annual and quat t c.t ) y :-ports and proxy statements ars ova i l at; -1 f wi t i.<_ -it charge f i F:; ] 1 -n Goldberg. Vice President for lnventot Felat.ons, Federal ft..ti nal Mortgage Association. 2900 wi sc•ons3i n Avenue, 11. W. , ra::f ; ngton, D. C. 20016 {telephone: ltr2,1 % i.)- 6')[A) . The suirsary of the w program set fortis herein does not i;utf,,:zt to be eospreher,=ive and in qualified in its entirety by r Ierenc=p to the Fannie Mae Guides, the Fannie Mae Prospectus and the ether documents it^f-tt-d to herein. Pool Purchase Contract wdl t h.. t r ..taupe Mae and the SerViosr WI l l sates r:..ae CLMtTact (the *pool Purchase (oO tracy). Pur suant t , spa, t, i he Servicer vi 11 be persitted to del iner. and F ante, "A,. will age+e to purchase Ocawut iotnal Mortgage Loans Ur exchange 1, ) Series A Fannie Mea Seceut it ies . fte purpose of the Paul Pure t se *gout ract to to prwrr ids tot Cert a is adds t iar. dalet "w " .`4 too the Faaaie Mss atldr relat Uy tO tae pure"".. , s Co mac tawai Mortgage gar. in the eveft of a vast 1 i ct batawr ire pool Poitcosse Cs■tgWt awd the PONUO RAO QMLdss , the pool A-8 Obese oast east Will GeNtmil . The deans UFS 009 tost b 661401400r a that tre Pool OwaftmM r Cu eaCS rl i i be oneorrted w4tavt4alltr► v w tae" Preemtard Our pArS. an t• the OWv&ast r of ire brie avert . ands: t Ir 00" Air Coutlet A■N" ter }rel i re both K ima! rl�5timmabon" &"4010 ! tris tet► iw r hs F swaNe of insured under t l'o, 'r annie Viae ct-Ameunit y Holtz Buyer's Program which conform tc- the Condit ionN set forth in the pool purchase Contract. See "THF PROGRAM" for a general description of the Fannie Nae Ccmv*vtuni ty lln-te Buyer's ProgrAN, Pursuant to the requirements of tho Fannie Mae Gaides, as of January 1, 1995, the original principal balances of the Conventional Mortgage Loans to be sold to Fannie Mae may not exceed $207,000 to be eligible for purchase by Fannie Mae. The Series A Mortgage Loans must be Conventional Mortgage Loans with loan -to - value ratios not in excess of 951 (unless authorized as a variance under the Pool Purchase Contract). Conventional Mortgage Loans with loan -to -value ratios exceeding 801 must be insured by a policy of primary mortgage insurance with coverage levels which satisfy the Fannie Mae Guide. The provider of the mortgage insurance must be acceptable to Fannie Mae. Under the Pool Purchase Contract, the 95m loan -to -value limitation for Series A Mortgage Loans will be based upon the lower of (1) the acquisition cost plus rehabilitation cost, if any, of a home, o7 (7) the appraised value of a home after completion of any rehabilitaticn. The maximum combined loan -to -value ratio is also 951 where subordinate financing is provided (unless authorized as a variance under the Pool Purchase Contract). The Pool Purchase Contract also provides that, in underwriting Mortgage Loans for the Fannie Mae Cc-nmunity Home Buyer's Program, certain exceptions will be made from the Fannie Mae Guides for down payment requirements for and determining whetht-r a household's income satisfies the requirements for purchase by Fannie Mae. The Pool Purch=ase Contract obligates: the Servicer to service the Series A Mortgage Loans in accordance with the requirements of the Fannie Mae- Guid-!s, and the Pool Purch•:a:aN Contract. Series A Fannie Mae Securities Each Series A Fatuiie Midas Security will represent the entire interest in a specified pool of Conventional Mortgage Loans purrhase+d by Fannie Mae ft the Servicer and identifiers in records maintained by Fannie Mae. The pool purchase Contract requires that each Series A Fannie Has Security be in a uinisan aoount of '21,0,000. The Conventional Mortgage Loans backing each Series A Fannie Mae S*curity will (except as otherwise provided under the heading " PWX&A 1 -- tatereat Rates on the Mortgage Loans-) bear interest I +„6Sf r asumm and eachi Fannia Mae Security will bear sntersa? .? $.,IS% r annus (the •Pese-lbr+ough Rate*) The liffwr•n, ween the interest rets on the Convent sacral Mortga Lge oar:e e. i ? +.� 14u - ltr'auph Rata as this ►sesta Mks seem ty wi l l be ,-ol ".. ? ..i ,- tin Servicer and and to pe this sssfteise tee of • .771i &ren : , .lm: and ►awls Nee'e OW&CAety Tee of 0.?1I per aeello, and, "WADS < tr ? •sat a �teearestssoer. tot>s dohs Semtex M to the Sorvioer es described under t, hiota” -M /Si0�t81 ! m erns *mos as the tleet~ Losns - • as Fannie Mae will quarantep til t he, Tr Ost-rt,d holder of the Series A Fannie° Mae Spc-urit-les that, it wi 11 distribute asouttta representing scheduled principal aiA interest. at the applicable Paas -Through Rate on the Conventional Mortgage Loans in the pool represented by such Series A Fannie Mae Securities, whether or not received, and the full principal balance of any foreclosed or other finally liquidated Conventional Mortgage Loan, whether or not such principal halanc-e is actually received. The obligations of Fannie Mae under such guarantees are obligations solely of Fannie Map and are not backed by, nor entitled to, the faith and credit of the United States. If Fannin Mae were unable to satisfy such obligations, distributions: to the Trustee, as the registered holder of Series A Fannie Mae Securities, would consist solely of payments and other recoveries on the underlying Conventional Mortgage Loans and, accordingly, monthly distributions to the Trustee, as the holder of Series A Fannia Mae Securities, would be affected by delinquent payments and defaults on such Conventional Mortgage Loans. Payments on Conventional Mortgage Loans; Distributions on Series A Fannie Mae Securities Payments on a Series A Fannie Mae Security will be made on the 25th day of each month (beginning with the month following they month such Series A Fannie Mae Security is issued) , or, if such 25th day is not a business day, on the first business day next succeeding such 25th day. With respect to each Series A Fannie Mae Security, Fannie Mae will distribute to the Trustee an amount equal to the total of ('i) the principal due on the Conventional Mortgage Loan in the related pool underlying such Series A Fannie Mae Security during the period beginning on the second day of the month prior to thA mnnth of such distribution and ending on the first day of such month of distribution, (ii) the stated principal balance of any Conventional M1_1111;age Loan th,+t was prepaid in t.uil during the second month next preceding the month of such distribution (including as prepaid for this purpose at Fannie fur's election any ^.onventional Mortgag- Loan after it is delinquent, in whole or in part, with respect to tour consecutive installments of principal .,rid interest; or because of Fannie fW's election to repurchase u h Cc.nvont Tonal Hortgags too" under certain other circumstances .:; ). r m i t t ed by the Indenture), (iii 1 the amount of any partial ),aym-rt. of a Ctonve t: tonal fiortq Loma received in the second r=, ,t h next preceding C1M swath of Loma and l►el one *w .,r t h' a interest, at the Pass • Tf-t n:.qh Rat• an the pritrcipal bslatrce t t t SO t i f O A For;?-, ffas i t y as report ed to the Trustee �:.e. ax,icaq the Trust.-.• ;. � h- feted boLder) to connection with t t,r ulnas diet r.1 i .. IPecting the first distttbution. t t,: 4, t i See' ipa 1 taw ! .. a ►rials Mss escuc i t y err i t s idsree date). Istat rMposes est diststi :ass. a aswatiaael ftwx Os Lmaa wi i I d asss 14 be" btwx: sawfe A is hill i t . is I 40 *A*'* osisanile jtr mew , the tel assrrnR tLnalIV eseowsAble are wommt s1 r,. by pri exF Acc) and par I'rc int is of such r- 11.1- tntional Morigagp les In has been received, whether or not such full ;%mount is equal to the stated principal balance of the conventic:nal Mortgage Loan. Fannie Hae a", in its discretion, include with any distribution, principal prepsyments, both full ani partial, received during the rnnth prior to the r nth of distribution Hit is under no obligation to cd,) s:o. PROGRAM A.^,SLWTIONS ASID RONDBOI.D€,RS' RISES Program Aaaumptions The Authority estimates, based on information provided to it by the Underwriters (herein defined), that the payments of principal of and interest on the Series A Mortgage Certificates expected to be purchased with amounts on deposit in the Series A Accptisition Fund plus the -oneys on deposit in the various fund: and accounts related solely t.o the Serie<s A Bonds, including earnings thereon (except for amounts in the Rebate Fund, the Program Expense Fund and the Cost of Issuance Fund), will generate sufficient revenues to pay On a timely basis the principal of and interest on the Series A Fc.:ids. The sufficiency of such revenue_; is based on the following assumptions: (1) Series A Mortgage Certificates will be purchased by the Trustee cn behalf, of the Authority on the Certificate Purchase Dates (or such other dates as provided in the Indenture) on the terms set forth in the Series A Program Administration and Servicing Agreements and the Indenture. The Series A Mnrtgage Certificatrs are backed by the Series A Mortgage Loans, which provide for level monthly payments of principal and interest and gear interest at 6.65% per annum, except as described below undt_r the- heading "THE. PROGRAM -- Interest Rate:: on the Series A Mortgage Loans." The Pass - Through Pats ,n each series A (3NMA Cert i f icat a and Fannie Mae security n"t r,t awounte retained by the Servicer t(,r UitMA and the Fannie Mae guarantee and servicinq tees, respectively, and the R=mws se ry i c+e Pea, if any, will d e equal to 6.1S% per annual. Tine principal psywant s and p repayment s on the Series A Mortgage Loans are passed through to tete Trustee as holder of the S+ries A Mortgage f`_tt j icat es. (i) To t h• est ant. that the awounte On deposit in the So t i• a A Ac-qu i s i t i on Fund are not used to purchase no. gpe Certificates on behalf of the Authority in the &einust ant. i c i pat ewe! , such aXney will be used instead to tredeesi the series A bonds as deecribsd lanais. ass *I= Milo A sups ion prow 1 s a ace' herein. (3) a1 ) .;rt .. z A Mott Ossa IAW w wall have low UWKalp t.ayawwta I i , ; j 1 and t+rtt east over iN wnwtINS asd way be pev"tif at airy t ,mc %tatbout pswsity. s" (4) Vich cif t h- lnvostw4mt Agreeetents will prow -ode for t h< est Abl i shment_ (,t f i x -d x ate* of tutu= on aewnurts invvsted with the respective Invest.ment Agvsgl t Provider. The Series A Acquisition Ft;nd Investment ftmommt Provider will p=ry interest cn the amounts invested under the Series A Acquisition, Fund Investment Agreement at the rate of 5.49% T-er annum until at least- August 1, 1997. The Serie; A General Investme=nt Agreement Provider will pay interest on the deposited in the accounts and subaccounts of the Bond Fund (including thct Principal Account, the Interest Account and th^ Reserve Account), the Oeneral Fund and the Rebate Fund related solely to the Series A Btmde at the rate of 5.93% per annum for the term of. the BCtldg. The obligation of each Investment Agreement Provider to repay the amounts invested with interest at the specified rates will be an absolute and unconditional unsecured general obligation of such Investment Agreement Provider. Failure of an Investment Agreement. Provider to honor its obligations under it:; Investment Agreement would materially adversely effect the ability of the Authority to repay the Bonds. The Authority and the Underwriters make no representation regarding the creditworthiness of any Investment Agreement Frovider. (5) All future expenses with respect to the Series A Bonds, including the Trustee Fees, will be paid in full on a timely basis from investment income on funds held by the Trustee and a portion of the interest paid on the :series A Mortgage Certificates. The fees of the Servicer and the GNMA or Fannie Mae guarantee fetes, as applicable, will total 0.50% per annum on the re>pective aggregate outstanding principal amount of A Mortgage L{ an:. underlying the GN4A Certificates or Fannie Mae Securities, as applicable. In adlition, in certain circumstances where the Series A Mortgage Loans bear interest at rates of 7.12% or 7.65% as described under the heading "T1E PROGRAM Interest hates on the Series A Niortgaye Loan.,,," the Servicer wil l i-tain a total of .17% or 1.00% poo at,taum, as applicablf which iri+-hides the applicable Servicing :and i:xcwee Service Fee =.nd GHKA or Pannie Mae Guaranty f—, -tach amounts will be paid from pro- -is of the Series A M�)tt gage Loans and will not be paid with -eeds of tate aerie!. A Mortgage Qsrtificatws. All Progra -e are f heed. and , + ti. -r than the Servicing tree, the Ti rs and the A+it t„,: ;i t :: no other e3Wenees will be paid tion the Trust Eatatr. (il itis statua hies of the serftee A loads bare been est abl laird an tea beet" of sat tcipsted selndule0 pavomts an the serisa A~�a Qsrtlftost". �aq tmove is so pre"ywom d daasrios A 11art~ Loses, it is ma tcd hemretr.t , tam too §b w�s Loses will be past&A as .:.t:DP Pet�sad a< t�ieetod Pros to UWif retspaetive mat sorties Sts a roads of swaats seer as sale. Mfisslt < 01014841RK bas Or cssralty logs - is to o t h- ang t 7) sot r a¢ A Priarcipel P.epsVENCte find ftee" dal r omee will be usrd t ' , put chase or - N LW - series A Dom" at per in acroosdance with the Indenture, It is anticipated that a portion of the atria A bonds will be mandatorily a do -sad without premium beginning May if , 1991, the first scheduled special wdatory redesiption date. because of non -origination of Series A Mortgage Moans, prepsylue+nt of Series A Nastgfige Loans of the application of twoes Revenues. goo *TM Ap�B,�,�,� F-4eeption Provisions ,,��t7�cia1 Manda��.. at i. " hr nin, (A) t -e tc:5 the differing irntetest- rates on the Series A M-1 t ,aa,�e S.F-;kn8 as deprril--d tsndl,r the heading •?Hili PROOBAN -- 1 TIt."t est k, -Ates on t h- r=ter i A M,�rtgage Loans, • Serifs A N r t �ar�e L_-ann which Swat int -7 est at the higher interest rates r.,ay ,-- Perion— hitt-,-r rates of prepayment than other Series A M rtaage Idoati__.; In x eachi nq the that- such revenues azo- expected 10 bet sufficient 1-y def -;t service f --)n the Series „ Bonds and iDther llrogram F.xp-nses, the Authority has reviewed cash flow )inalyses which assu-te the different cirru-st-anres described below: (1) on the Si>1irs A Y --i+ ,,ire Certificates are received c n t t:a t hi it ieth ll y of t"n, -- r,th in which they are due. (2) 1 he Series A Mortgage Loans will Prepay at various speedy of FHA experience, including (1) 0%, (2) 100%, (3) d00V, or (4) t00% until the Outstanding Bonds maturing April 1, ;'.()1t3 ate retired and ti% thereafter. (l) 'Sherr will be various levels at origination of Series A M -r t gage Loans including (1) 100% origination, (2 ) SO% origination, (3) origination of =250,004 in Mlortgage t,,..,r;r, or (4) origination of no Series A Mortgage Larne. I)l — 1 -n t , yr*lowntat ions made and information provided to it by tim 111ridet-wt it o -t a at -A Participants. time Authority believes it is pl+aa xiat i- t -, n.a t t,," assowVt-ione but there cyan be no amaaramos what poevat t t.at events will correspond to the to -you* ilkswuntj t i r �nx . 110.99, i a l Caws i ds o a t., ,r a l a l.attwo to )I }.r (.'I i Italatiori = t :, i � x A W I i aaat• 9900 r. ata rya 4106416100 saw iii W • $be%~ lafame aw an II: ;.at WIS. +•fia+M w 06241IpW df:&Ctan"M mint d to 6 -- weet a aa, :.t unfit to t 1w amo'M of trAeft fieot i1 Gor GINI& 4", dw. vd t*0 Mae 1 fasten as aaeaaslt tai weal 404as• ,4 : -a:.a to t#s 00611.4d" twrdr is eaMs wry teams SMR tMeglaw Mhwr+ee awd ase etaw tafee sora age 6".+we• eiaea fittt«o t ie f, Osis � tAlat Y on i we arm..gs t rwr • 21 Nhott 000 of f undF i 1a t t.o L-Vanties to Sam such loans at interest s at es rfm"t it ivp with that spoeif led for the Series A Mortgage Th i a condition could change during the or i q i nat i on Period i n t h- sp i i es A Nott gap Loans, For errarple , preva i 1 i ng t nt erest at -;t f, s c-onventlona l mortgages 1n the Counties could decrea", or t,t h-r i undo to wake real estate loans at rates and an ogler teres equivalent to or more favorable t'-,an the rate and torus of the er ies A Motto lec�-v ans ll Y- >aie available by the Florida r• H,3ain,; Finance' (the "J1aer. y° In the event that, prior to all cif the Series A Mortgage Is:.arEa ging originated by the 1'a7tiriE-,ants, funds to make Series A Mortgage Loans were to become ay.4i ]at,lr in the Counties at rates c apetitive with those specified f,,, t },F-, rf i les A Mort,aage Loans, the Participants might not be able tc� utilize all of the funds available for the origination of Series A r^c,rt grime Loans. In 1995, the Aut hoz i t - i rr;j3erd its Single Family Mortgage Revenue Brands, Series 199,.'Al proximately SS7.11S.4195 in funds s+^gain available under the program at a mortgage loan rate of 7.4S! i ,-, annum. Although the Prrgram rate for the Series A Mortgage art of 6.6S* per annum is i -,-,s attractive rate, the fact that t here are additional low inter—est rate loans available ±say cause thA I99,t, Program funds to yriginate more slowly. to addition. general e.ccncTric conditions, mortgage market interest rates and mortgagor mobility also may constitute r:i,snificant factors in deternainina the demand for residential real rr:tate loans by prospective borrowers. In the event that such c< an d i t i cans we r p to reduce the demand for such l oars and t hue indirectly eliminate some of the shortage of funds in the Counties ,r) sake such I{)ans, the Partici patnto might not be able to utilise ail e,t th+r funds availablp for the originatiotn of Series A Mortgage I.caans . The Pi-;ram requires the Servicer to purchase Series A Mf> r t gags 1,ua n : and provide for the issuance of Series A Mort co rt i f i , a t to F i- , ked by such Mr fes A Mort gage loans toe purCiaM i t a,,,. ^ 1,;,: t -,, t r = T: Ser ies A bond proceeds. It the SerViasr. for argil► InA: T1., is sable to purchase Series A Mortgage Looms or issms :'r I a r s A Mt. 9 ' 4090 Cart n t icates for per'c=m t he Trustee and so J"119 ted •Ncc es or eetrti low am be s 6 1 i t 1st . the Mer lea A Bawds will be a .4 f r0ft PWOOMM& mot appl ted to Nast } t n cat N �-TasOsted re�ooseds W ass i h• i►u t s i t iaa rand will be veW to eoaow Mertes • 8ando at psi b"tM1.46 Islay 14. 9"T t SMR l.. IM. or am& Mawr dwas est aw aebod Prison to tis [issirtam. as desenhad tea. bra ragsee d Peis the Sayles a tias /Itted will be read to tester See les a hes` at OW != cite u. 19" SUMMO Ageo r ii.i l bawa iw Mea ��M WAM a � �, tr if ea totemoo $Mveaa is 110 Ooda LA,'r-` _: : -r t gin trquit at9 as to the gaalIILest ion 40atial O=JVo,.i is for Reties A t+brty see L+o4e1111 to be SM"Ired P Yervicer under t tw Pt ograw, and the purcha*0 rr t c-•+ of the Mlices whi! h way i*pr-rm— subjpct to a Serie* A M-..-4a,;e LOnn. lregui r rr-r= ,t P Seat r i (t the ability of poter! a i mortg@4—pm Md 11ritial w�,, t F t o gi.al i f y f nt Series A Mot tga9e LOMO dad �Y may n:,, i -: * a l l y i t ra i t t hr? Trustee ' s ability to putCb&M A 14ortgagp Cert ifrcat es hack -d by Seriep A Mortgage tronas. itiqu i reagents ar- auto i pct t(:, change and .,iy btcosie snore A.6t1vr, thereby ronultinq in a decrease in tha number of A'al arort9agors rt 1--;cf-nt i.al unitEa oligih•le for inclusion in dtlgr am , %* Cade requires a payment t t h- ?'nited States frosa certain aj;porg with ze-spert to eerie=: t, w--7t-gage Loans as described "THE V,Rclt RAYI -- fierier a 1 7,, -ix l,aw Requirements -- ARGABLUM i if1L" herein. The Aut.h(.) i t y i F unable to predict what effect, r, this provision might: h;A-o- on the origination and prepayment A,es A Mortgag+, Loans f imine, A with the prooe"D of the Series de. See "THE i'FOGRAN F, Tax Law Requiretaents - - .lire Prn i iLzj " of FNA Inou: atice and GN'MA Corm tznPntu M,4- funding of �perationi; (- I Ii,itain federal agencies which dmN services in connection* with the Program is subject to the q,al of the U.S. COVAJ'ress. 11-.- funding of operations of FNA, dlirg the delivery of mortg-if, insurance with respect to FHA - 14 mortgage loans, has ter ri approved by the U.S. Congress qlh septomber 30, 19% only. it an extension of the funding 11111 is not appr-nved prior to Septesiber 30. 1996, no FFA vnc-* will be available for the origination of Mortgage Moans tiiated ur,d•r the Program after that date. Failure to extend fig for FRA could result in the purchase of fewer CUM C i cat es 1)y the Trustee. In addition, the funding of the 1.1on of GMIFA. including the issuance of coiniaitsesnts for t2MM I'.LCatea and the delivery of 40M Ouarant ies in connect Lou with 011M tart. i f i c steo . has In v ,- author t sed t brow" ttarch 22. 19% so sitter.aion beyond Karr% 22. 19% of authority for the 11010 of tom► ocaimitmsnt s t.as *+ren authorized as of the dots C. The i nabs 1 i t y of FFA to dr l i mer WOrt949e insurance M tbs ility of the *ervioer to cAA ain out f iciest 43WFM c+owsaitwMte tar 1,"rsa eau l d now I t in a higher l i ke l idood of a hand be 0104 przWAant to a spec tot eawAat ovy redoapt tan ar darer ha�adsta! • TM of t L tts A OO1+tUs rMafDt ieiw pea►tallear - 113 I�tawt t*dsa�t sur+. • %*I &Ait r tot be 160lime" h � *www aw will bom 44"6 64M ��ffa No" ad ds'• 1 � Ort i t teawe is ammen" �INI�i � t9.• �.pisittaa+ /tinned lifer etszli �. it N •zR INa t.e wt,.t t t + . t saw. t wt use tedwal Nil MW rw aAis Ora l i s t sf 00 O W "M to 4644" dtl " W iNw � 4111111001144 a•a M 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,_,.. Other Risks Tho remedies available to the owners of the Bonds upon an Event of Default under the Indenture or an event of default under the other documents described herein are in many respects dependent upon judicial actions, which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, the remedies available under the documents may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by the application of equitable principles. The Series A Mortgage Loans financed with the Series A Bonds will have terms of not to exceed 360 months, unless otherwise approved by the Servicer. However, a number of factors, including general economic conditions, mortgage market interest rates and mortgagor mobility, will affect prepayment experience with respect to the Series A Mortgage Loans and, therefore, the average life of the Series A Bonds. In addition, Series A Mortgage Loans bearing interest at rates of 7.12% and 7.65%s per annum may prepay more quickly due to increased refinancing activity or default. The ability of the Authority to pay the principal of and interest on the Bonds during the Certificate Acquisition Period depends primarily upon the ability and willingness of the Series A Acquisition Fund Investment Agreement Provider to honor its obligations in connection with the Series A Acquisition Fund Investment Agreement. A downgrading of the rating of either of the Investment Agreement Providers or deterioration of their financial strength could adversely affect the rating and marketability of the Series A Bonds as well as the ability to meet debt service obligations on the Series A Bonds. unexpended proceeds on deposit in the Series A Acquisition Fund will be used to redeem the Series A Bands (or a portion thereof) as described herein under the caption "THE SERIES A BONDS -- Redemption Provisions". The ability of the Authority to pay the principal of and interest c;n th«_ Series B Bonds through the! Mandatory Tender Data dePsnds prinarily ur-11 the ability and willingness of the Soria* B Proceeds F'un 3 Agreement Provider to honor its IJKLQations in : ca r, -c-+ ,,:.t, with the Series B Investment Agreement. 21w Soldiers, and Sailors, civil Relief Act of 1940 (the 188=*1 protects service men and Mown called to active miIita daty by sumps"Lny enforcement of civil Iiabilities thsoug� toreCLO Are and providing relief from current obliyyaa�low . Speeif ical ly, each act provides that no obligation of I iabi l ity bearing imtorest at a rate in excess of •% per anrn incurred by a perms in active military duty prior to his or tar entry into is active military duty, shall bear interert. at a rate in excess of b$ per annum, except in certain limited circumstances. In the opinion of the U.S. Department of Housing and Urban Development, the benefits of such act constitute a forgiveness of the obligation in excess of 6% per annum rather than a forbearance of collection. Fannie Mae has indicated that it will follow the requirements of the SSCRA and forgive interest in excess of 6%, and that it will not require the Servicer to be responsible for paying any deficiency resulting from such forgiveness. However, the Pass - Through Rate on the Fannie Mae Securities would be reduced by the forgiven interest amount. GNMA has indicated that, in the event the SSCRA causes a deficiency in amounts received on the Mortgage Loans backing GNIMA Certificates, the Servicer, and not GNMA, would be responsible for paying such deficiency. There can be no assurance that the Servicer would be willing or able to pay any such deficiency. If any such deficiency is not paid by the Servicer, GNMA will pay such deficiency, to the extent required by its guaranty of the GNMA Certificate. The Authority is unable to determine whether the provisions of the SSCRA will affect the willingness of Participants to originate Mortgage Loans, or the willingness of the Servicer to perform its obligations under the Origination Agreement. THE PROGRAM General Description The Series A Mortgage Loans will be secured by first mortgage liens on Single Family Residences in the Counties. The Single Family Residences may include condominium units or units in a Planned Unit Development ("PUD"), single family attached and detached residences meeting the requirements of FHA, VA, RECD or i.anrie Mae, as applicable, and the GNMA Guide and Fannie Mae Guide, as applicable. Series A Mortgage Loans must be made to persons or families who intend to principally and permanently reside in the Single Family Residences and who are of low, moderate or middle income who qualify for such financing based upon the income limits established from time to time by the Authority. Unless the Single Family Residence is located in a Targeted Area, each person executing the Mortgage must be a First-time Homebuyer. The Maximum Current Annual Family Income for the Counties, which ameyunts may b* redetermined by the Authority frc:m time to time, is asa follows;: Participants shall set aside a portion of their Program Allocation for origination of Mortgage Loans in certain designated Targeted Areas for a period ending one year from the Application Start Date, during which the Participant's Targeted Area Allocation in the amount specified in the Notice of Acceptance shall be used to purchase only Series A Mortgage Loans originated in Targeted Areas. The Participant shall use reasonable diligence to originate Series A Mortgage Loans for acquisition of Single Family Residences in Targeted Areas in an amount at least equal to the Participant's Targeted Area Allocation. Up to 33t of Series A Mortgage Loans originated from a Participant's Targeted Area Allocation may be utilized to originate Exception Targeted Area Loan3 to Mortgagors whose Current Annual V,.mily Income ,xcecds 1401 (120% far families with one or two mFrbirs) of the applicable rrredian family income but is not mire than 150% ot. the :4pplicable median family income, provided that each of such Ko taagors shall be Eligible Persons and Families and such Series A M,,rtgage mans x" ll otherwise satisfy all re"icements set tooth in the Origination Agreement. At no time during the Origination Period shall the &aggqregate principal amount of Exception Targeted Area Loans originated by the Participant and purchased by the Se ry i rs r ertcwd 311 of the aggregate pr i nc ► pa 1 ;.m,,unt of Targeted Axw Loans which have bona originated and t! , , t seed i roan the Vogt icipant ae of such slate . 17 litfia___iazaaLed-Btsaa Taraated Araaa• 1 or 7. 3 or More 1 or 2 3 or More Family Family Family Family MQM.s.:f s>1'A NUMLaYa mcmhers__ Citrus County $40,000 $46,000 N/A N/A Escambia County 40,000 46,000 $48,000 $56,000 Gadsden County 42,900 49,335 N/A N/A Hardee County 40,000 46,000 N/A N/A Hernando County 40,000 46,000 N/A N/A Indian River County 40,400 46,460 48,480 56,560 Leon County 42,900 49,335 51,480 60,060 Marion County 40,000 46,000 48,000 56,000 Okaloosa County 40,000 46,000 N/A N/A Okeechobee County 40,000 46,000 48,000 56,000 Santa Rosa County 40,000 46,000 N/A N/A St. Lucie County 42,700 49,105 51,240 59,780 Walton County 40,000 46,000 N/A N/A + Two-thirds (in principal amount) of Mortgage Loans originated to finance Single -Family Residences located in Targeted Areas are subject to the income limits set forth above, with the remaining 1/3 subject to an annual income limitation equal to 150; of the applicable median family income subject to redetermination by the Authority as provided above. Participants shall set aside a portion of their Program Allocation for origination of Mortgage Loans in certain designated Targeted Areas for a period ending one year from the Application Start Date, during which the Participant's Targeted Area Allocation in the amount specified in the Notice of Acceptance shall be used to purchase only Series A Mortgage Loans originated in Targeted Areas. The Participant shall use reasonable diligence to originate Series A Mortgage Loans for acquisition of Single Family Residences in Targeted Areas in an amount at least equal to the Participant's Targeted Area Allocation. Up to 33t of Series A Mortgage Loans originated from a Participant's Targeted Area Allocation may be utilized to originate Exception Targeted Area Loan3 to Mortgagors whose Current Annual V,.mily Income ,xcecds 1401 (120% far families with one or two mFrbirs) of the applicable rrredian family income but is not mire than 150% ot. the :4pplicable median family income, provided that each of such Ko taagors shall be Eligible Persons and Families and such Series A M,,rtgage mans x" ll otherwise satisfy all re"icements set tooth in the Origination Agreement. At no time during the Origination Period shall the &aggqregate principal amount of Exception Targeted Area Loans originated by the Participant and purchased by the Se ry i rs r ertcwd 311 of the aggregate pr i nc ► pa 1 ;.m,,unt of Targeted Axw Loans which have bona originated and t! , , t seed i roan the Vogt icipant ae of such slate . 17 410 Each Particip,ant_ls Program Allocation -ay i,,� h<-,14 for Builder Reservations suhject to the Ori(lination Agree-ent regarding the time period for commitment of funds, provided that no r --)re than 50t of the total funds available under the Program rr_ay bf, so reserved for builders without the prior consent. of the Authority. The mount of approved Building Reservations) for each Participant is specified in the Notice of Acceptance delivered to such Participant. No particular builder (including related persona as defined in the Code) may reserve funds from all Participants which total in the aggregate in excess of 20% of the total funds available to purchase Series A Mortgage Loans under the Program. Each builder is required to exhaust its Builder Reservation prior to seeking any other Program funds for Series A Mortgage loans on Single Family Residences identified in the Offer to Originate. In the event the Authority extends the Origination Period as provided in the Indenture, the Authority may, in its discretion, allocate funds available during such extended period and may, in its discretion, provide for reimbursement of Commitment Fees. During the Origination Period, a Participant, with the prior written ccnsent of the Authority and the Servicer, may transfer all or a portion of its Program Allocation to one or more other Participants, for the purpose of ultimately fulfilling its obligation to the Authority, complying with the requirements of the Origination Agreement, or for such other reasonable purposes that shall be specified in writing in the Participant's request submitted to the Servicer and the Authority. At the end of the Origination Period, the Authority shall terminate any Program Allocation or portion thereof that is not then the subject of a Series A Mortgage loan submitted for Purchase. Commitments for Series A Mortgage I.oann within allocation regions described in the origination Agreement will he made on a first-r_ome, first -:served basis, including commitments made from reservations of funds for builders. Participant_-: shall originate Series A Mortgage Loans and close and deliv.-r such Series A Mortgage foams at :such times as will enabl.• the Servicer to purchase such Series A Mortgage Loaria by the final Purchase Date of the origination Period, subject to the availability of funds for purchase and the availability of Series A Hortg-vle Loans in amounts esul f icient to form a Pr�ol . Series A Mort stage Loan must be secured by a first asa».jrt qa,4 - lien on the Single Family Residence acquired thereby, and made to finance a residence in accordance with the then current utiderwrit innqq policies of FHA, VA. R . the PM insurer. and paint* "&*, as applicable, and all other requireemnte established by the originattaa Agrom ent and the Code and the then current criteria set f ort A Lo the GIM outdo or sante Use Ou tdos . as app1 i cab 1 e . subject to the final review o! the Gervtoer Hach series A Mott"" Leen (s) shall bear tatere t at the rate of ♦ as• per &same tenx+apt as othervtae deecrtbed Under the himAtsq •T= PSOURAM 56 •1 • 1' -- Int.e+rest Rates on t_he Series* A Mort,;age Loans"), (ii) shall provide" lot level monthly payments of principal and interest due the first day of each me,nth (which payment shall be accompanied by amounts for deposit in an escrow account to provide for timely payment of taxes and insurance), (iii) shall have an original term of not to exceed 360 months, unless otherwise approved by the Servicer, (iv) shall be assumable only under the terms and conditions set tort.h in the Origination Agreement, (v) shall comply in all respects with the Program Documents, the GNMA Guide, the Fannie Mae Guides, the Lender's Guide and FHA, VA, RECD or PMI Insurer's rules and regulations, as applicable, (vi) shall be in a principal amount not exceeding such amount as conforms to the eligibility and credit underwriting standards specified herein and the application limitations of FHA or VA, as applicable, the Program Documents, the Lender's Guide, the GNMA Guide and the Fannie Mae Guides, and (vii) shall be the subject of a mortgagee's title insurance policy. See "THE PROGRAM -- Insurance" herein for a discussion of the insurance requirements under the Program. Pursuant to the terms of the Origination Agreement, the Servicer will purchase Series A Mortgage Loans originated by Participants which are submitted to the Servicer and which are in compliance with all the terms and conditions of the Origination Agreement to the extent funds are available in the Series A Acquisition Fund for the purchase of Series A Mortgage Certificates. The Servicer shall pay to the Participants, for each Series A Mortgage Loan a purchase price as described below under the subheading "Interest Rates on the Series A Mortgage Loans." Only Series A Mortgage Loans submitted in accordance with the requirements of the Origination Agreement will be purchased by the Servicer on any Purchase Date, subject to availability of Series A Mortgage Loans for purch;ire .in amounts sufficient to form a Series A Mortgage Certificate. Interest. Rates on the Series A Mortgage Loans Each Series, A Mortgage Luan will bear interest at: a rate of 6.65b per annum, unless the Mortgagor elects to ente-r into a Series A Mortgage Loan at a higher rate described below. In connection with Serir�s3 A Mortgage Loans which b—a r interest at a higher rate describFtd below, the Servicet will pay to the Participant an Addit ic.t,,tl price for purchase of such Series A Mortgage Loan as 1<>srx iL. rl in the table below. such additional purchase price is to )•e utilized to pay the discount ter and origination fee otherwise ,�-QQuuired to be paid by the. Mortgagor, and any excess may be used to t ed closing costs or downpaya►Pttt of the Mortgagor in ac=rdanc* with applicable guidelines of GUMA, i'MA, VA. ROM and PINK. The ,,:.., , ..:. interest on ouch Serie* A Mortgage Loan above the sus of the s., :- -up, Pate, tr,r. ...r.,: inq fee and the 0� of FNM guaranty ,: A *.I! I laeatlnq lnter+at at a tate of f .-,%,. r .: i . + ., ' � Yi+r l e'er m ari Ilac+ae ai. t v s : • .t 41teetedter 441fe94 .-:a. % servI -r rill purchase no ml:,re than 70% ot t_h, total a' mni. of f.erie:; A W)rtl-a_te Loans 01i9inated sander the program at t_he higher rates. Purchase Price Paid by SQrvicer Mortgage Loan (as a percentage of principal amount of the Mortgage t.,_ian) FIi&IYA;Loans $Ec"QAaa 4anventi2ual Laans 6.65% 1010.75% 100.40% 100.15% 7.12 102.50 102.15 101.90 7.65 104.50 104.15 103.90 Fannie Mae Community Home Buyer's Program The Program will also offer more flexible underwriting than otherwise may be available to first-time homebuyers participating in the Program whose conventional mortgage loans are backing Fannie Mae Securities, through the Fannie Mae Community Home Buyer's Program sponsored by Fannie Mae. To qualify for the program, the mortgagor must first participate in home loan counseling seminars which will be made available on an on-going basis throughout the Program. The seminars cover: (1) how to purchase a home; (2) budgeting; (3) evaluating the Mortgagor's current ability to repay a mortgage; (4) homeownership planning; (5) loan closing; (6) home maintenance; and (7) avoiding a default. Federal Tax Law Requirements The Code provides that the interest on qualified mortgage bonds will not Le included in the gross income of the owners thereof if, among other requirements, all of the proceeds of such bonds remaining after the payment of costs of issuance (the "lendable proceed,") are applied to the purchase of mortgage loans of which at least 95t at the time such mortgage loans were made by the lending in,.;titut_ions, complied with certain mortgage eligibility requirements described below. The Code provided that (i) in determining whether 95% of the lendable proceeds of the issue are to be used to make mortgages satisfying the mortgage eligibility requirements, the issuer of the bonds may rely on certain specified affidavits of mortgagors and sellers and certain bpecifi,-d examinations made by the issuer or its agent, (ii) the issuer must, in good faith, attempt to meet all of the mortgage eligibility requirements before the mortgages are executed, and (.iii) the issuer must correct any failure of a mortgage loan to meet such requirements within a reasonable period after such failure is discovered. The Author it has covenanted in the indi n..ure to comply with the Code and the procedures required by r, Origination Agreement, and the origination Agreement includes if.- affidavits and examinations Which the Cods spsciiles may be i e 1 i ed upon by the Aut heat i t y is determining oospl iatrce With such r wQu i reimwnt s . rto.so t equ i t went s and pcoeedums are summar i sed "o Cods. a, appl ted t o t he i ds t c6tMet east est ot tis Mt prove ds sd tis boom Lu 101. be used t o f inance i esidpricps of Fliqible Persons anri Fa-,nij ),,�g Ul have not had a piesent ownership interest in a prilicipai !+idence during the three-year period Preceding the date on which Ill Mortgage is executed. The portion of such proceeds used to 0:e Mortgage Loans in Targeted Areas is treated as used for such I Vpose. Under tilt, Code, the Authority may rely on its or its Tillits, examination of federal income tax rLt-urris and the A'tgagors I affidavits t o ascertain compliance with this !-�,fuiremerit. The Origination Agreement requires each Participant ) obtain and the Servicer to examine for each of the preceding it,ee (3) years federal income tax returns of each of the )l'tgagors or a mortgagor's affidavit containing the statement that ic�ih mortgaqor was not required by law to file any such income tax !turns for such year, unless the Mortgage Loan is for a residence )t!ated in a Targeted Area. e . encc__R_-qujj:cmjeat. As required by the Code, the Indenture i di the origination Agreement, all residences for which nier-financing is provided with tile proceeds of the Bonds must be Irigle Family Resiaences located within the Counties. Both the il,hority and the Eligible Persons and Families must reasonably ciiect that the financed residence will become the mortgagor's .-J.ncipal residence within a reasonable time (60 days) after the )rtgage Loan is executed or assumed. The Series A Origination Ireement requires the Participant to obtain from each mortgagor a !rtification that at the closing of the Series A Mortgage Loan ic�:h mortgagor intends to make the Single Family Residence his �tncjpal residence within 60 days from the date of such closing. idler the Code, the Authority may rely on such certification for 11'poses of ascertaining compliance with this requirement. lilcom,- LimitatiUns- As required by the code, the Indenture All the origination Agreement, the family income of each mortgagor kv not exceed the applicable jx�rcetitage of the current median ,1;ms inco-rw_ for the Counties. The applicable percentage of. median 000a incume is 115% (1001 with respect to a family consisting of tile than three (i) persons) for residences not located in a It'geted Area and 1401 (120% with respect to a family consisting of tits th4n thril,-� (�,) I-- - -roons) for Targ*t*d Area residences. The r'Cqram T-quir�s lh,At Eliqible Persons and Families supply in �Vidavit xottinq 1-ith their family income. The Code, as applied to the Ulds. roquiro's that the *Acquisiltion cost* (&a defined in the )OC of each rvoideace bei" tinanc*d may not exceed 90% (or 110% % the cadw of Targetaid Arm") of the laverj4p &tva purclhase prlc** plolicabl* to dneab limmideme. The determination of the av*r4MM rl:tta Ce narKvd Crchmoo price applicablel to eseb lrellpidge belvAg I& mad* as of the date on wktcb the Part scipent commate to OW Ow "ortiogo Ulna or. it earlier. the data of purc*Asm og the N it 1 dkenc,* . 41 40 in accordance with the Code, the United States; Treasury Department has published certain "safe harbor" average area purchase price limitations for residences financed by bond financed mortgage loans in the Counties. The Program establishes limitations on the acquisition cost of any Single Family Residence which comply with such "safe harbor" limitations. Thai Program requires that both the Eligible Persons and Families, and the sellers of the Single Family Residences supply an affidavit setting forth the acquisition cost of the Single Family Residence and certifying that the Single Family Residence is a completed residential unit that includes only such land as reasonably maintains the basic livability of the residence. The Code prohibits the financing of a residence which will be used in the trade or business of the mortgagor; accordingly, the Program requires that the Eligible Persons and Families certify that they do not expect to so use the mortgaged property. Under the Code, the Authority may rely on such affidavits for purposes of ascertaining compliance with these requirements. The Maximum Acquisition Price in the Counties as of the Bond Delivery Date for Series A Mortgage Loans originated on new and existing Single Family Residences in the Counties is as follows: Non-Targeted_Arcas Taraoted Areas New Existing New Existing HQM= domes Homos _liom w Citrus County $106,366 $98,523 N/A N/A Escambia County 106,366 98,523 $130,002 $120,417 Gadsden County 106,366 90,056 N/A N/A Hardee County 106,366 98,523 N/A N/A Hernando County 88,680 83,491 N/A N/A Indian River County 106,366 98,523 130,002 17.0,417 Leon County 106,366 90,056 130,002 11(),068 Marion County 106,366 98,523 130,002 1:,.0,417 Okaloosa County 106,366 98,523 N/A N/A Okeechobee County 106, 366 90,0!',6 130,002 1 20, -1 1'l Santa Rosa County 106,366 90,056 N/A t./A St. LUCis County 92,4644 9r>,68.1 111,212 1146"945 Walton County 106, 61, ,+y, 521 N/A N!A The Maximum A—luisition Pt ice limitations are based .,n *sato harbor" average ar-,a purchase prices published by the United States Treasury Department and way be redetermined by the Authority from time to time. Maximum Acquisition Prime limits are also subject to the applicable nwvA/RMM limits for the Counties- The Cods doss not al lav proceeds of s qua t ted "ort gage issue to be used to acquire esaae mart gewe Rtherstry r ;rAtrtAq the Authority to apply avec P90000ft curly to m mir-oriltee"" mortgegssl . oc to rmtu� SKMing teems. aa. -pt camstrsetiem period loans. W idye !amus er other statim tsmposerV must N� used to finance residences of Eligible Persons and Fa^ilies who have not had a present ownership interest in a prin,�- residence during the three-year period preceding the date on which the Mortgage is executed. Tile portion of such proceed, used to make Mortgage Loans in Targeted Areas is treated as used for such purpose. Under tiie Code, the Authority may rely on its or its agents' examination of federal income tax returns and the mortgagors' affidavits to ascertain compliance with this requirement. The Origination Agreement requires each Participant to obtain and the Servicer to examine for each of the preceding three (3) years federal income tax returns of each of the mortgagors or a mortgagor's affidavit containing the statement that such mortgagor was not: required by law to file any such income tax returns for such year, unless the Mortgage Loan is for a residence located in a Targeted Area. HQLiid n Re atirFImPn As required by the Code, tyle Indenture and the Origination Agreement, all residences for which owner -financing is provided with the proceeds of the Bonds must be Single Family Residences located within the Counties. Both the Authority and the Eligible Persons and Families must reasonably expect that the financed residence will become the mortgagor's principal residence within a reasonable time (60 days) after the Mortgage Loan is executed or assumed. The Series A Origination Agreement requires the Participant to obtain from each mortgagor a certification that at the closing of the Series A Mortgage Loan such mortgagor intends to make the Single Family Residence his principal residence within 60 days from the date of such closing. Under the Code, the Authority may rely on such certification for Purposes of ascertaining compliance with this requirement. Incomf Limitation r As required by the Code, the Indenture and the Origination Agreement, the family income of each mortgagor may not exceed the applicable percentage of the current median gross income for the Counties. The applicable percentage of median gross income in 115% (100% with respect to a family consisting of less than three (3) persons) for residences not_ located in a Targeted Area and 1401 (120% with respect to a family consisting of les,-; than threw (3) persons) for Targeted Area residences. The Prc,graam requires that. Eligible Persons and Families supply an affidavit s+rtting fc.tth their family income. iS11;)r hitt J,i�it® i The Code. as applied r lands, r,q,,res that the iOition aost• des defined 091601 -1 each resid-tnce beteg timed may not oxcoed got ii, in the , ase of Targeted Areas) of the *average area purchase price* applicable to such residents. The deterianation of the averagr aseapr t ce applicable to each res t denc'e being emet tafds a• of the dote an wbtcb the Partictprnt cess 400 the MsstW" Lam of . it esa i ser . the date of purct6o" r— 11- . 41 ii n i t i a I financing of 4 nt hs or less. Th.- Series A Origination A,jrv-rm-n* i-quit4bs that the Eligible Portes and Families supply an a; f i day i t i t i f y i nq t hat t he wortgaqp. loan proceeds vi 11 not be lit-1-d in A MIT111-1 Which W-U11 violate fj)js requirwe"t. Re ja L iij Ttw CcAe requires that AVJY M(A.11age loan fin,inced with the pjoc-f-d; of a qualifying mortgage issue may he assumed only if th- applicable mortgage eli'libility requirements relating to princ-ipal residence -- absence of home ownership for the prior three years, intent to occupy r-h-- residence, income- limitations, and acquisition cost limitaticns Applicable to a r 'rwly-oriqinated Trortqarzf- loan -- are Poet with respect to the assupticn. Tilt, deternin-.Ation as to (-c-pliance with these xequi2 r ment z is to IN as of the date on which the mortgage loan is t%eing assumed. Accordingly, the Authority must deter-mine the relevant average area purchase prices for each statistical area within the Counties and the current applicable median family ince-e and MUSt assure coTpliance with each of the applicable requiie-Ants of the Code for any such -issumpt ions. The Series A Originaticn Agreement provides that any person or family assuming a Series A Mortgage Loan must meet each of the eligibility requirements and b,.-, approved by the Authority in the same manner as newly originated tr_�ztqages are ap.prnved. "jx rtifln of Non-complianco, Tt-.f, Code provides that the Authority is required to cure any failiji- of a Mortgage Loan to comply with code requirementrz within a reasonable time after dis(:ovt-zy of such failure. Th- Series A Origination Agreement ivquizcs the Participants to repurchase any such defective Series A Morto.jag- Loans at the direction of the Servicer, and the dorum.mnts evidencing or securing the Series A Mortgage Loans provide that upon discovery of fraud or misrepresentation by the Porrower on the Loan Application or Mortgagor's Affidavit and Gertif icate such Series A Mortgage Loan may be declared Immediately due and payable. Tei &d Arama The Code roquires the Authorit to make *t least the lesser of W 204 of the lendable proceeds of the konds or (11) 40% at the average annual aggregate principal Awomt at "00" en&cuted in the p. tog three calendar Years for GLIV410 f;013tary"otiner-oct-upiod restdsoess located in Targeted kreas available to purchase "o"ga" Loans soft to finamm single I-'asst IY lads 14 11480 to the T&r9oted are" for a period of at least rA year tram Un date ot szo%&nce of said ban" asid to ame 1*@*0VAbl* dtttqwiear to place ADUCh proceeds is qwalitied wartgovis to TUr"ted ,Areas . The Aut hoe at y WW CaggNA&Ud is the judwa We OMM t to rVqU 4 8Vd van too of t 60 140dable oeaessas7 ~141ble is out t 141fto to t6w sea tee A (W t6s, wartteavems ==M�ted to ease— rwssasasale— - a &vow* to FUWS f=1W0 'As it red ""Ve"as to V" ad Usas "a Cods *— &M1PMMJtg 00 VWV&NG9 Of 0 WAINVOW &� W1@dW 90 40 11-01,60 6*nqww fAW 6" 0 presna WANW464V "misses* to 0 P"Moss- 68866as "446W "W t*WVW raw" pes."W saw ponswiftse too 68 F': - Sitio9 of the Itoi t tis•a- i f t So t-014pnce f ins"ced with the i r •qmOft of the $% rte 1—;%n y is I oca+ r ', within a Target -i At—a. be Cbde reguiree issuers ,:,i Mort"40 towel bow to file two types of information reports With the it,tertenl ft@V ap •atvice. Uh er the Cbde, not later than t h,p 24th day -f f the escond Ca l eadar leoath after the CIO" of the <4uay+e-1 is which the 00nds are issued, the Authority is t r,,1t i red to f ; 7 Q an infornat ion report containing information on t i+ondit. Pursuant to the servicing Agreenetrt, the servicer is t�q;.tira3 to file such reports on behalf of the Authority. The At, t h -t i t y haFt rn-venant ed t t; f ; 1 P the rreport s requ i red to be filed, ih- c. -d- PI-Ovideit that an issue is treated as satisfying tho t ai:4K,trd areas and arbitrage requirements of the Cods if (i) the isr-u-•i , in good faith, attempted to "eet these requirements, and (; )) .4ny f a i l ut e to argot chasm requ i r r went s is due to inadvertent Pr r r'r of tPr t ah;n�2 reasonable stej -. in complying with such rQ r-irenta. A?Ini t r 92 t L_ r,t L. he Cbd- ; ,..ntains special arbitrage 1,1(.visiors applicable t- issues of qualified mortgage bonds. F I I --t , t h- Code provides t hat the *of fort ive rate of interest • on t h r • clot t. , , a fire Loans my not exceed the yield on the dards by sore than 1.135 percent. Second, the Code requires that issuers rebate COUM MLtad Stater certain investment earnings on •nonpurpose • Uffraettsants other than mortgages) to the extent that Che 0MMMt Of MR& easttinga exceeds the amount that would have been MtOsd an such iarsstsaats it those investments were earning a Mttrsea equal to the yield ca the Goods . The Authority has direct ed Chs 1UMUa to pay to the 901ted States the arbitrage earned On i t s e0apuspOes laaasstmaot6 in aeoordtnnce with the computations of the rbi e Amomt under the todenture and has covenanted not to take or prsit two be taken any action wbieb would cause any Good to violate MW of the arbitrage restriction applicable to the Goods under SDOtioa ltirgi or section 144 of the Cods. In addition. the AUUmwtty has dirsetad the Trwtae to comply with a Isttor of trtcuat&one to be do ivevedGood Counsel slayitansousl with UW Leswe coe and delivery of the surds wblcb contains proir�sleer des i lned to asscare that the sub i t raw prvn to kers of *act lar 1s 1191 sea 140 of t1W Code ars satisfied, &Mcdo Ur4soG. TM Codeiris a poysmst to 00 cure c1es�tave mostwsss With eteaoset to iron.. ,rhes► saes of it raide.oes t i.eeees by a ta. 1r�..4F""WW t+evaalan".. as M ,141 a...a.tis a.� tam :down" to dadma ow ee em ve ��t1a�t. i L aUq o Ia ..�.. so as so" me t& 6alol be as wro ofa ar ds�eee� ectesver ttr tOm oft ver MOWar�11 d4stw a temew sf am am* nes was +: •Mw ad #AR~ to amm wm wmpm • to sales or dislx�sit-ions occurring after year nine. An ojtcopr. i.-' 1 excludes from recapture part: or all of the subsidy in the rasa of assisted individuals whose inc•o^e was less t-h:in presc.rit- i aunt9 at. the time of the disposition. Origination and Purchase In connection with each Series A Mortgage Loan, the Participant may, as permitted by FHA or VA or Fannie Mae, charge and collect from the Mortgagor or seller of a Single Family Residence at the time of closing of the Series A Mortgage Loan an Origination Fee and a Discount Fee not in excess of the amounts set- forth etforth in the table below, provided that the Origination Fee and the Discount Fee shall not in any event exceed the applicable Fannie Mae, FHA, VA or RECD limits. The HUD -1 Settlement Statement and related loan documents shall separately and distinctly disclose the Origination Fee and the Discount Fee .and shall clearly reflect that the Origination Fee does not exceed 1% of the principal amount of the Series A Mortgage Loan. In addition, the Participant may collect at the time of lean application an application fee for the costs of the appraisal and the credit report (any moneys remaining out of the application fee must be refunded). Participant may also collect at the time of Closing from the Mortgagor or seller as permitted by Fannia Mae. FHA, VA or RECD, as applicable:-, all reasonable and custor^=try out- of-pocket costs permitted by law paid or incur -red by the Participant, including Lut not limited to notary fees, settlement fees, document preparation f«,es, hazard, mortgage or life insurance premiums, survey, titl,. insurance premiums, appraisal fees, attorneys, fees,�12S Series A Mortgage Loan review fee, documentary and int,an•liblw taxes, it any, recording or registration tames and charges, ),I, --paid escrow deposits and similar chargee. Such fees and ext.—times may be collected only once in connection with the originat1 .n of the series A Mortgage Loan and shall not rxc,eed l iwi t a est at,I ished f rom t ine to t ier by federal law or state lsw and in any event may not exeead like amounts charged Mn ouch area in cases %lhete CA0001 financing is not provided throw" t" - ex« 1t t evveoe bon". To the extent permitted by low. the /etst , cipaat may collect from the seller of a single rMuly fteioeftoe the VMMttx%. it any. of the orrtgLottler♦ Fee that may em be coi2ested trot a - A 'POOR d e to tederal se state low re :i'tat Lars 46 Origination Origination Origination and and and Discount Discount Discount Mortgage Loan Fee Fee Fee j 15_ Rat_Q (FjA/VA LoaIls) SCD LQrjajl-_1 (rOn'✓entional Loans) 6.65% 1.75% 2.10% 2.351 7.12 0.00 0.35 0.60 7.65 1.00 1.00 1.00 The HUD -1 Settlement Statement and related loan documents shall separately and distinctly disclose the Origination Fee and the Discount Fee .and shall clearly reflect that the Origination Fee does not exceed 1% of the principal amount of the Series A Mortgage Loan. In addition, the Participant may collect at the time of lean application an application fee for the costs of the appraisal and the credit report (any moneys remaining out of the application fee must be refunded). Participant may also collect at the time of Closing from the Mortgagor or seller as permitted by Fannia Mae. FHA, VA or RECD, as applicable:-, all reasonable and custor^=try out- of-pocket costs permitted by law paid or incur -red by the Participant, including Lut not limited to notary fees, settlement fees, document preparation f«,es, hazard, mortgage or life insurance premiums, survey, titl,. insurance premiums, appraisal fees, attorneys, fees,�12S Series A Mortgage Loan review fee, documentary and int,an•liblw taxes, it any, recording or registration tames and charges, ),I, --paid escrow deposits and similar chargee. Such fees and ext.—times may be collected only once in connection with the originat1 .n of the series A Mortgage Loan and shall not rxc,eed l iwi t a est at,I ished f rom t ine to t ier by federal law or state lsw and in any event may not exeead like amounts charged Mn ouch area in cases %lhete CA0001 financing is not provided throw" t" - ex« 1t t evveoe bon". To the extent permitted by low. the /etst , cipaat may collect from the seller of a single rMuly fteioeftoe the VMMttx%. it any. of the orrtgLottler♦ Fee that may em be coi2ested trot a - A 'POOR d e to tederal se state low re :i'tat Lars 46 An Assistance paj—nt will be proviIf in an :� ^:ret equal t0 the following Fe+tcmntar3es cif the prim -ipal a >unt of Mortgage Loans bearinq interest at. a rate of 7.653, which A--sunt may be used by the Mortgagor to pay a portion of the dc;wnpay--nt or closing colts as allr,wAhle by the applicable insurer or guarantor: EL1t i/YA R.LCD r'onv n i Il -1 3.00t 2.61A 2.40'% With respect to a unit of a condominium or a PUD, such unit must be acceptable to Fannie Mae, FHA, VA or RECD, as applicable, and Gh'MA or Fannie Mae standards. There is no restriction on the percentage of condominium or PUD Mortgage Loans that a Participant may originate. With respect to Manufactured Homes, each such home must meet GNMA Standards and be acceptable to FHA, VA, RECD and GNMA, as applicable. The Participants are required to consider each application for a Series A Mortgage L. -an in the order in which received, on a fair and equal basis. A Participant is not permitted to arbitrarily reject a Series A Mortgage Loan application because of the location and/or age of the prcl-erty and will not, in the case of a proposed mortgagor, arbitrarily vary the terms of a Series A Mortgage Loan or the application procedures therefor or reject a Series A Mortgage Loan applicant because of the race, color, religion, national origin, age, sex or marital status of such applicant; provided, however, that a Participant may refuse to accept applications for Series A Mortgage Loans to refinance construction loans if the Participant desires and intends to make no such loans under the Origination Agreement. In addition, Series A Mortgage Loans can be made only to those persons who certify their intent to r.>ccupy the property as their principal residence and wh,)s,<- Maximum Current Annual Family Income does not exceed the current inc-o,re limitation. Insurance All Series A Mortgage Leans are required either ti) to be insured by FHA or quaranteed by the VA or RZCD before they are by the Srtvir_er and delivered to COM upon the issuance of a *ties A GNMA Certificate, or (ii) to he insured by a policy of pr i �'.at a mortgage insurance to the Extent required by Panni* Nae bef-te they are pooled by the Servicer and delivered to Fannie Nae upnt, the i+e»;uaiice of a Series A Fannie Nae security. Al 1 :i ' irha A l6ort9ags Loses rout t..- covered by a standard harai s insurance policy and a flood LVAIWAMM policy. if the Single Ssn. 1 1 y MOL400M DOCWUQ fol Sarins A Ibst~ Lasa to located lee Sn ares i d nt i f tad by the Seame.ary of !Mountand urban 110-1 && vise " arae &ise npeeux flood humu ". alb� ftnemew of !the solevem Aamo M 8,40 sasoesattesa will pelt tas Standard 60t a r•, WAVACOnae and flood to urroe pal icy prw. %ow . Paw a w coWlete description of the teims of t -hese polic=ies, refeten— is made to the provisions of the resp-ctive insurance Ix'Aicies and to the provisions of the Origination A-lreement and the Ad-inist_rati^n and Servic=ing Agieement:s relating to these policies. F.ach Participant is required to obtain anti maintain an errors and omissions policy, and fidelity bond in ar.�unt., required by GPeMA and Fannie Mae for parties acting in their capacity under the Program: FHA's authority to issue commitments to insure the Mortgage Loan is subject to a statutory limit on the dollar amount of commitments to insure that FHA may issue during a federal fiscal year. No assurance can be given that FHA's authority to issue commitments to insure aeries A Mortgage Loans will not have reached its statutory ceiling for a fiscal year before it has issued a commitment to insure with respect to some or all of the Series A Mortgage Loans. See "PROGRAM ASSUMPTIONS AND BONDHOLDERS' RISKS" herein. Servicing of the Series A Mortgage Loans The Servicer will service the Series A Mortgage Loans and will have full power and authority, actino_ alone, to take such actions as may be necessary to discharge its duties with respect to servicing. The Servicer shall be entitled to a monthly servicing fee, and, under certain circumstances, compensation from insurance proceeds or liquidation proceeds. The Servicer shall be required to pay all expenses incurred by it in connection with its servicing activities under the Series A Servicing Agreement (including maintenance of its errors and omissions insurance policy and fidelity bond) and sherd riot be entitled to reimbursement therefor, except Ars specifically provided in the Servicing Agreement. The Service.- :.a required to perform all e)f its duties in servicing Series A Mortgage Loans with due care, diligence and reasonable proatptnesa and to use at least the same degree of care in tservicing Series A Mortgage Loans as it employs in servicing mortq.sge bens to confora to at least the minimum requirements established by CBM and Fannie alae. The Servicer is also required to furriirth all required reports in accordance with GUM and Fannie t l!'A'rr tM Darier A PVC.—graft Administration and Servicing f, at :1" Tit=s, the S+rvicer has genwral responsibility tar OrUg the Program for and on behalt of the Aritharity, The t.ilicies of th.- servioer as administrator include rev&owuq ~, +, 11 ..qa File it. ,rder t ietersins that all • have r. It ted It. ?Taper s urn and that bawd upon snch u, : , . = t i , ►p , t as ► Nort ge" Lroan q" 1 i t ias toys purcbsee a► pursuant to the atonies A Pr -gram Ad° initiation And ervirinrr Agreements, the Seavic¢r- I's required to take steps, ar tions ar: i other l.roceedings Consistent with custo—Ary practice in thr mortgage servicing industry for the ^nforcemnnt of all tPrr-g, covenant:.-; and conditions of all Series A Mortgage Loans, i.racleading the prompt payment. of all Series A Mortgage Loan principal and interest payments and all other amounts due thereunder. The Servicer shall establish and maintain a separate account or, accounts (collectively, the "Escrow Account"), to be maintained in accordance with GNMA and Fannie Mae requirements and shall deposit therein all moneys received by it as escrow payments, including amounts representing collections of real estate taxes, assessments, premiums of any standard hazard insurance policy and comparable items. The Series A Program Administration and Servicing Agreements provide that the Servicer may not assign or transfer its rights and duties thereunder without the express written consent of GNMA and Fannie Mae and if required by the GNMA Guide or Fannie Mae Guides, the Authority. The Series A Servicing Agreement provides that the Authority, with the prior written approval of GNMA and Fannie Mae, may terminate the Series A Servicing Agreement at any time if the Servicer is no longer a GNMA-approved issuer -servicer and Fannie Mae approved seller -servicer. Under certain circumstances, as described in the Series A Program Administration and Servicing Agreements, by notice in writing to the Authority and with the written consent. of GNMA and Fannie Mae, the Authority may terminate the Servicer after which a substitute servicer shall succeed to All rights and obligations of the Servicer concerning the servicing of the Series A Mortgage Loans (which substitute servicer may, but need not, be the Trustee, must be acceptable to GNMA, Frannie Mae .and the Authority and must be a Gh'N.A--approved issuAr-servic•-r of FHA insured, VA Guaranteed and RECD -guaranteed Mortgage Loans and ,an .authorized issuer of ';NKA Certificates and a Fannie Mae approve=d seller -servicer). A &uzaption Roatrictione It, any case in which a Single Family Residence subject to a M,,itgage has been or is about to be conveyed by the Mortqagos and } ),� l,urchaser d"Ime to assume all the rigfrt a and obligations of i he teortgagor unlet the Series A Mortgage f., sat. the Servicer may t «lease (subject to any required OMtll. Faun.+ Mae. PMI Insurer. s'RA, VA or WSW alrproval . as applicable. and 1n accordance rrttb •appl i r. ablm Pft. VA or R!CD rules and regulations. as the ease may ) w�) the Ortgfef I ttoetgagor and take or sinter into an assUrpt ton asre*etent from or with the person to %line wed Property hu boom or a atxsut to beooawy+edt �a�o�rLbed. bow V. that welt asaarpttom may only be permitted it til tr porchow r is se S.I ivt,bi• Nagano or AMM l Y. f 111 glen pusC660es artll 000rpy tlra Sugl. Pat ly tweadomos a :this 40 dam at the asnrort ioni r tis pltrcoag . • ps ►ac teal r�&adeaoa MW latwra to mo atais Un 8"Ote Pauly widowe sa M • his c,7- her princil'al. I CSideri! e AR lcrtg as he Or a1K2 ie tiat?le c n fpr the Series A Mc rt._3age Loan, (iii) the A%(luisition Price cf the Sin, ile Family Residence does not exce=7d limits then applicable '.or an existing Single Family Residence in the Counties, (iv) the. Series A Mortgage Loan will continue to be insured under the insuranre policies described in the Origination Agreement and approved by the Servicer, (v) the purchaser's Current Annual Family Income does not exceed the then applicable Maximum Current Annual Family Income, as established by the Authority, (vi) the Series A Mortgage Loan will continue to comply with the requirements of Fannie Mae, FHA, VA and RECD Regulations, the Program Documents, the Lender's Guide and the GNNA Guide or Fannie Mae Guides, as applicable, (vii) the Servicer provides to the assuming mortgagor notice of the recapture provisions of the code, (viii) except for residences in a Targeted Area, the purchaser is a First Time Homebuyer, and (ix) it does not contain terms which the Servicer has been advised will affect the exclusion from gross income for federal income tax purposes of interest on the Bonds. The assumption restrictions shall be incorporated in the related Mortgage and kept as a part of the Mortgage File. In connection with any such assumption agreement, the interest rate of the mortgage note shall not be changed; however, the Servicer may charge in connection with each assumption an assumption fee not to exceed the maximum amount permitted by Fannie Mae, FHA, VA, or RECD as applicable, plus, to the extent permitted by law and Fannie Mae, FHA, VA or RECD as applicable, the reasonable and customary out-of- pocket costs paid or incurred by the Servicer as specified in the Series A Origination Agreement. Foreclosure Lavers A standard form real estate mortgage is used in the State as the security instrument in real estate loans. The Mortgagor continues to hold legal title to the real property involved and the mortgagee obtains only a lien on that property under the Mortgage. The Mortgage must include a description of the property encumbered by the Mortgage and must identify (but need not describe in great detail) the indr.4,1-ftess secured or to be secured by the Mortgage. In they Stator ,,f. Florida. mortgage foreclosure is a judicial 1)rOrppdi n'a . The Servicer THE KdYAAOING I !<i i-4MTI(W R11Si,J!'1"Bi TO AND KU SIM BY FIR" NAT I ( (taw f pa Its t,4tVG"TI()t1. SUM II//(ONftTICM IM Wr 2i VWI 1 i -D AT TU AtTUOtM. Tat taRaaZf6 IT'M. THUN RJWJFaITIVN COMLL OR am tom. AND IS IM QNRAMVED a TO as MXNACT R. AW p Eff TO IS 0�10 At A or TS AgawalT. Tis RZ IMS. TW IR RANNMaCTM COt11. Co aW Tas bsrrtoet, ►►rs�t ret 1.aorraee ose�xat Iw. rr lsase�ss�tw a. irwe •. leve rmAes sas at sal State at of Delaware. The co -pang is a wholly owned subsidiary of First Nationwide Bank., a federal savings lank, formerly First: Madison Bank, FSB. The Bank is an indirect. subsidiary of K-icAndsew t Forbes Holdings Inc., a corporation wholly owned throt.igh Mateo Holdings Inc. The Servicer is in the rrvort.gage banking business and is primarily involved in servicing, originating and administering mortgage loans. Loan production operations are based in Dallas, Texas and the loan servicing operation is based in Frederick, Maryland. The Servicer is ( i ) an approved FHA and VA lender, (ii) a GNMA-approved seller and issuer of mortgage-backed securities guaranteed by GNMA, (iii) a FNMA -approved seller and servicer for conventional home mortgage loans and (iv) a FHLMC-approved seller and servicer for conventional home mortgage loans. First Nationwide Mortgage Corporation acquired certain assets of Lomas Mortgage USA, Inc. on October 2, 1995. This acquisition included the assets and personnel of Lomas' correspondent lending division, VLB administration, PERS administration and Bond administration. As of January 31, 1995 the Servicer's mortgage loan servicing portfolio balance was approximately 800,000 mortgage loans with a total principal balance in excess of $50 billion. THE SERVICER HAS NOT PARTICIPATED IN THE STRUCTURING OF THE PROGRAM OR THE BONDS OR THE PREPARATION OF THIS OFFICIAI, STATEMENT, EXCEPT TO THE EXTENT OF PROVIDING THE INFORMATION CONTAINED UNDER THIS CAPTION "THE ::ERVICER." THE SERVICER ACCEPTS NO RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT OR FOR THE BONDS OR THE: CREDITWORTHINESS OF THE: BONDS. Issuance of GNMA Certificates and Fannie Mae Securities The Servicor, pursuant to the Origination Atlre*ement and the S,-ivicing Agreement, has agreed to use its b- t_ efforts to purchase Series A Mortgage Loans originated by ths- Participants in accordance with the terms of the Oriqination Agreement and to submit an appropriate application to CNM.A for commitments for the guaranty by GW4A of the issuance of So -ties A OHM Certificates. Th- :;eraicer shall e7Gmrcise its beat judgment to cause the aggregation of Series A Mortgage Loans to occur to enable the formation of mortgage pools sufficient for the issuance of Series A (I.W.a Osrt if icates and Fannie lies securities in as expeditious a as possible so that aggregate (tort gags loans may be funded I tka"t my delays rnsttIti" to the Part icipants or the mortgeows, Servicer any. in its discretion, maim the dstoraunatiom to t , : • •in for the issuamos of Series A (AM Certificates or Fam us, jr i! ive at sue* tis in the judgment of the se"taer. as 1 901"s A *Amos" Liamme ori4tested by tbe r out t wlew t or the tasasae seg loo A alm 108 ar Peseta Ilex rsoritLos br tr MWWWat T%o ,' , , _, ny�r• tine sertme A MR OW Lia me acct tl awcs i is to that the Servicer deems it advisable to cause the i5giran+:n of a Series A GNMA Ceit.ificate or Fannie Mae Security. The Nervi-er is required to ensure that no Series A (-=IVhA Certificate or Fannie van Security will lir issued in such an amount which would either- (i) preclude the origination of subsequent Series A Mort -gage Ioans, or hi) if Series A Mortgage Loans are originated and a mortgage pool is comprised of such Series A Mortgage Loans, preclude the issuance of a GNMA Certificate or Fannie Mae Security backed by such mortgage pool. The total principal face amount of any issue of Series A GNMA Certificates or Fannie Mae Securities shall not exceed the aggregate unpaid principal balances of Series A Mortgage Loans in the mortgage pool. The Servicer must notify the Trustee before each proposed delivery thereto of a Series A GNMA Certificate or Fannie Mae Security of the aggregate principal amount of the Series A GNMA Certificate or Fannie Mae Security to be acquired. The Trustee shall disburse Mone}'S for the acquisition of a Series A GNMA Certificate or Fannie Mae Security only upon delivery of the Series A GNMA Certificate or Fannie Mae Security. Upon delivery of a Series A GNMA Certificate or Fannie Vitae Security, the Servicer shall be entitled to receive as payment therefor an amount equal to the Certificate Purchase Price. Subsequent to the purchase by the Trustee of the Series A Mortgage Certificates on behalf of the Authority, the Servicer is required to remit to the Trustee all scheduled payments of principal, interest and any principal prepayments that are payable with respect to th'. Series A Mortgage Loans which back the applicable Series A GNM,A Certificate or Fannie Mae Security when any of the sastte shall be due and payable (net of the Servicing Fee and Excess Service Fee, if any, and excluding the scheduled interest on a Series A GNMA Certificate or Fannie Mae Security received in th,� month such Series A GNIMA Certificate or Fannie Mae !.ecurity is purchased) and to Meet all its obligations under the GNMA Guid#,, the G 4A Guaranty Agrees—nts, the Fannie Mae Guides and the metol Purchase (ontract or contractualagreementsagreements to be entered into betwe.=n the :vie+^r and GNMA or Fannie Mae. T'he Participants: TU* terthc:ity W(Aicity-d Lllera to orlgioat• Mortgage Loans 11COR lend q hast i t kt i una k ,j r*9 business in the Counties. The ftllowt" lending i nal at ut : ems havo been tpigned Program Allsostione. including but l4or Waservat tans. in the Count iso tsdicated below for which ttry will pay the Lata CoURitow" rhes to the Authority (provided. that the ==1t"@h7 to its dLOWMtLOW . It t to pair a prat Lan of the Cositennt 1 1i Il't P.,i14-1 Tarq-I--I Pr -brae F:m:." XAL"m ALMA-Lmads &LLQQALiaQ Firtt YvJeral Punk .1,000,000 0 0 $1,000,000 Total 1,000,000 0 0 I, 000, C,"a vaLnrr QQ12 Treasure Coast Mortgage Corp. 500,000 0 0 500,000 Total 500,000 0 0 500,000 xx1?s4AN_T Cot'•,dTl Molton, Allen 5 Williams 750,000 0 0 750,000 Total 750,000 0 0 750,000 IMIAN RIVER C01,7 1( CFS Mortgage Corporation 400,000 0 100,000 500,000 Harbor Federal Savings Bank 400,000 0 100,000 500,000 Total 800,000 0 200,000 1,000,000 AGN CC'U1�� First Federal Pant. 515,384 1,000,000 484,616 2,000,000 First South Rank 1,325,961 0 424,039 1,750,000 Peoples First Cotamunity Bank 378,846 0 121,154 500,000 Total 2,220,192 1,000,000 1,029,808 4,250,000 ST_t L)CIE COL^�TSt Transland Financial Services, Inc. 0 773,355 101,635 675,000 CFI Mortgage Corporation 773,355 0 101,645 875,000 Harbor Federal Savings Park 883,834 0 116,166 1,000,000 Trea6ure Coast Mortgage^ Corp. 984,834 0 116,164, 1,000,000 Total ,;41,022 '773,355 435,663 3,750,000 Cse..ai `ii� �z T rtN Chase Manhattan Mortgage Corp. 1,400,000 0 0 1.400.000 first Northwest Florida hank. 040,010 0 0 480,070 M01tan Allen i williarns 1,200,447 0 0 1.200,049 powles First commmity am* 1,100,000 0 0 1.100.000 wap 1 ea list repel bank of sl4mville 710, sea 700..000 0 4w. 070 sunTrtq/t Usk. wont ILscfds 2,*is.0" O O J. 071.000 Mar*tve4.0 llt,stems c 1 , 470 ,;tie 1.0", OM 0 2.470. JM 050W y M f 4. 4 4.6' /1. O 1.60.00! Vaud 911031944 1 , "G.000 !. 0". 900 U. inw. am tWA1.40tOOM !•004 e". 903 0 1.011.64/ a. Oft. OM 4mmm TGOU. OV .r.6 f 096 !ft ♦,!0!.091 86.946.606 ANAA A. ravaaa4w &4 t:n. L.rt.4L"'%t t 4+64r 6,a 440 i4tis11ss1D Ot 46D `y ammum of Parra-0 w... 40 .#- t4w a...r • 40Jr4044000 Orr 6m 6� MW641W &A%Dd st ►t sw 4, a.m.t�t ar 4614111tHi ► MF 1st • •� 4M SECOND MORTGAGE. PR0(;PAMS The Series A Origination Agreement and the Indenture permit the Local Authorities at their option to provide additional rt,neys for down payment or closing cast Assistance in connection with the origination of Series A Mortgage Loans. No assurance can be given as to whether any of such moneys will be available, or under what ter-M.S. No default under any such second mortgage* will impair the security of the related Series A Mortgage Loan or cause a default thereunder. THE AUTHORITY General The Authority was created as a public body corporate and politic in accordance with the Florida Housing Finance Authority Law, Chapter 159, Part P:, Florida Statutes, as amended, and an approving ordinance by the Board of County Commissioners of Escambia County. The Authority is authorized, in furtherance of the public purposes descriLed in the Act, to alleviate the shortage of affordable residential housing facilities, and to provide capital for investment in :such facilities, for low, moderate or middle income families or persons within its area of operation, through the issuance of its revenue bonds for the purpose of providing funds to purchase home mortgage loans to finance the acquisition of single family residences and by pledging such home mortgage loans as security for the payment of the principal and interest on any such revenue bonds and by entering into any agreements in connection therewith. The Boards of County Commissioners of Citrus, Fscambia, Gadsden, Hardee, Hernando, Indian River, Leon, Marion, Okaloosa, Okeechobee, Santa Rosa, St.. Lucie and Walton Ccuntif_-d, respectively, by resolution approved or - are scheduled to approve, and, if other counties are added to the Program, the Poard cit. County commission* t s (A such counties will approve the implementation and administrat.ic=n by the Authority of tho Program within the fx�,undaries at such C(".111ties. The Authos ity has entered a,t will enter into separate Intrrlaoal Agreements (collectively, the m;nterlocai Agroements*1 with the honsiaq finance authorities ut Ler>n, Nation and St. Lucia 0WAWAias sad tlr Board of county ©ommissiolaers of Citrus. Gadsden, Verdes. Menutudo, Indian River, Melee". ots+ehobeo, Santa Sara and Walton Cuatiee, and may enter into eudl ams with other hon s"q rtmance authorities or oouatime designated by the Authwitr latah mB1t�. t+� with t:he Authority. caollectivelr retorted is as ills '"local Asitias" and *sod wt be refesrrd to as an "*AdORiRy~' t =sw atiw CbWWV ver - L►� the Antrottty. tbb at�s4tedowt boor t tomm w aK bar 1 t ire we" a rs&"" M pubtit tee emwPo et,e and =it iC is aacruirdssrae wita tIIs `Raise I ° ... - . V nor. tot i.*irtM the a4apt taw Of dope" i ma 08 ordinances by the rest-ct ive Aoatd of County Ccarmissinn--r t-f mar county, and are. authorized to carry out public putpo. that :are substantially identical to those of the Auth^rity through substantially identical rw ans within their respective Country areas. In addition, the Board of County Commissioners of each County has approved the implementation and administration by the Authority of a multi-county single family mortgage revenue bond program to be conducted within the boundaries of each County pursuant to the Interlocal Agreements. The Interlocal Agreements provide that the Authority will issue the Bonds and that a separate portion of the proceeds of the Bonds is to be allocated for use within each County pursuant to the guidelines of the origination Agreements. The Authority is composed of five members appointed by the Board. The current members of the Authority, the dates on which their respective terms expire and their principal occupations are as follows: Principal Na'.L.f' ,'rm Expjj, L; occupati0I1 Seymour J. ?Marshall 7/31/95 Retired Elbert Jones, Jr. 7/31/97 Lending Officer Sandra J. Ward 7/31/99 Real Estate Management Lamar B. Cobb 7/31/99 Bank officer James D. Cronley 7/31/98 Owner/Building Company The Authority will neither originate nor service the Mortgage Loans, and the Authority will have no responsibility with respect thereto or with respect to the collection, transfer or payment of any moneys derived from the Mortgage Loans. The Authority has contracted with the Servicer to administer its Program through the monitoring and supervision of the origination .and sale of the Mortgage Loans by the Participants and to service all Mortgage Loans financed under the Program. The Authority's staff consists of an e-xecutive. director, Gordon R. Jernigan and one assistant. In approving the Pi o -p am and the issuance of the Bunds, the Authority has relied upon c+it-tin information and r--pres+ntations provided to it by cQonsultants ;ir.d attorneys and by the Underwriters. Secondary Market Uisrle+suro 4 - Au t h": it y hs! a; a. d t. o sed natio* at i no l y tanner of mat rt ial svernts (within' ata knowledge) in sc rdanee with Rsls 1 sea j2. promu 1 gat ed under the Securities focta.nge Act of 1911 i "Rule 1St:2 12" i sztd further covenants to provide annual financial informsrat iaA in aceosdanoe with Rule 1SC2-12 within OM buindted t went y t 1201 days of the and of its ft=al year, so tang as owb :aqui r r -greets are is ettect . Attached homto as Appendix • to a ounna: y of t.hw root tmtAUiq Disclaeaesee Big eatesed lata by the &at hot It y . M Prior Ponds The Aut-hority has previously issued ten .�p)iai atn .4nrixes of sins le family mortgage bonds. The table set forth L -t -low seta forth the interest. rate on the mortgages originated under- each program, the type of mortgage loans originated under each program, the delivery date of such series of bonds, funds originally available for acquisition of mortgage loans under each program, funds actually used to purchase mortgage loans under each program, and the percentage of the funds originally available for acquisition of mortgage loans actually originated. AMlhorill Escaabis Canty Nousing Finance Authority Simple Family Mortgage Revenue Bonds, Series 1982 Escanbia Canty Rousing Firwwe Authority Single Family Mortgage Rcver Bads, Series 1984 Escaabia Canty mousing Finance Authority Sinrqgle famity Mortgage Revenue Bond;, Series 1985 Escaabia County housing finance Authcrity Sinrgqle Family Mortgage Reven— Refundir�l Bonds, Series 1987 Escaabia County wousing finance A,thsrity Single family Mortgage Reverm bonds, Levies 19,159 AA8 tscaanbia County Raising Finance Authr,,ity Single family Mott9a9e Revetnle Bads, Ser tet IWL €staat�ia Carty No.xing finance A;athc:rrty Single FsoIly alpr tgage aeverwae R-rv+rta, Ler t!s 1990A Isi.aabis County Nausimp Firwilt.a A4thor1ty L inglr Iaa 11y Mir tyapn Fgvtnum badt, W rare WA f ti ast l atows" y 14 4 1, np 1 i'tt/OaAa O*101 1 If A 1ngls f aN.11 y k..1, t yam•asvamata 001911111s, lar laN 19916 t a.. std:ia l.w.rit y Iiii— 1 try 1 tato m Ameh r i ty 1 1ng1. taxi 1, k'." t9.9• Fevakme OarF$A, a...id£ 14y" lit Funds Funds alvailablf Used to % of Mortgage Loan Delivery for Purchase Issv_ ._Rata._ IM —PAIS— AUUUi3i_9n _L4itiLu-_ QC-UlnUed 11.950% VA,Conv. 07/15182 S26,108,274 S 1,758,652 6.71-% 11.100% Conv. 09/20/84 521,478,000 $18,971,463 68.33% 9.750% Conv. 12/18/85 517,687,00) S 947,595 5.351'. 9.500% FFA/VA 06/01/87 115,000,000 5 8,636,483 57.59% 8.550% FkA/VA 03/28/89 545,690,09'1 K0, 654, 234 88.9?'. 8.1500% F'A/VA 06/27/87 513,865,000 $13,156,506 91.911 8.25:% LAA/VA 13/27/r0 $36,965,000 511,,941,6.6 17..4% 7. nM Ik,A/,A a1lakml h7,910.000 5.).141,31. S. :_"% 7.'AM IeA/vA GWII& T isi.MC.Mi us. JIM. 1>w AS -an 7.aSG't. i"ivi1/ al4llifi s 01m1111.3w, on W.a5a,7ri ♦s.fta Claw. 4'. ; .4" a. 'W1 i —1 1 1 W..' 41104 t~ taaoi t Vt.. W .$,.Fat am Saw 140 1,:..r r w it a1.5millft a• aatlarw 1. IMP T! r - A;.: t ! i r , a lal hilt t tw t agro a ovd t0 t L� laf>r a• writ l as ams &M P"Wievely Lose" revs w aawa tag f, t.- "is it an alts" to tam aa~sty tag ur tK And thtr Fonds will ncl 1-,e :rcuTte9 by the revonues rel at.in-s h. sond 3 . OTURR PARTICIPATrUG LOCAL AUTHORITIBS OIL forth below is certain information with respect to than Local Authorities participating in the 1995 program: County itrus County participated in the Authority's Series 1992A and 1995 issues and one other single family bond issue issued in ryt 1991 by another issuer. Prior to 1991, Citrus County had >_iriously participated in any single family mortgage programs. County is located on the Gulf of Mexico in the central part state, north of Tampa. The county seat is Inverness. County has riot established ;a housing finance authority. ni County a,dsden County has participated in the Authority's Series 1995 Gadsden County is located in the north part of the state, f. Tallahassee, and the county seat is Quincy. Gadsden County t. established a housing finance authority. County arrdee County has not previ(,,sly participated in a single bond program. Hardee County is located in the south-central III the State of Florida, and Wauchula is the county seat_. iCounty has not established a hou::ing finance authority. Ebt) County drrnando county participated in the- Authority's series 1992A mind other issues by other issuers;. The County is located on vAral Gulf coast of Florida, south of cedar Key and north of The county seat is Brookaville. Nernando County has not �.reh+ d9 A housing finance authut i t y. ]River County I►dian River County pat t ictpat t -d tal the Series i992A and 299% issues and case other issue Leawd In 1904 by mither Ttw 0311 is located on th0 000tral east coast of 41., rl :rt h of P't . Pierce asd Oa A of NeUm levo. and the ooupty III r a DoI ladtatr Rtww Camty bus sot est abl isbrsd a 11 , ; ;. r„•e AMONority, 14 Leon Authority The iron Autharit.y pat t: ic91 at rd in t hs� Authority's 1982, 19R9A and B and 19911 issues and has previously issued its own single family is=sues for progratlsts, most recently in 1995. Iron County is located in north central Fl()' "(14, between Jacksonville and Pensacola, and the county seat. is; Tallahassee. Marion County Marion County has, through the }lousing Finance Authority of Marion County, participated in four previous single family programs issued by other authorities and through its Board of County Commissioners participated in the Authority's Series 1995 issue. Marion County is located in the central part of the state, south of Gainesville and north of Orlando, and the county seat is Ocala. Okaloosa County Okaloosa County has participated in the Authority's Series 1995, Series 1992A, Series 1991A, Series 1990A, Series 1989C and Series 1989A and B issues. Okaloosa County is located on the Gulf of Mexico between Panama City and Pensacola. The County seat is Crestview and the major- city is Ft. Walton Beach. Okaloosa County has not established a housing finance authority. Okeechobee County Okeechobee County has not participated in the Authority's previous issues. Okeechobee County is located in the south central part of. the State, adjacent to hake Okeechobee. The county seat is the City of Okeechobee. Okeechobee County has:; not establisht*d a housing finance authority. Santa Ross County Sema Rosa County has participated in tilt- Authurity,s Series 1995, Series 1992A, Series 1991A, Series; 1990A, --i s 19890. Series 198'+A and B, Series 1997 and Series 1985 issues_ Santa Rasa County is located inowdiately east of Recambia County on the Oulf of M+•x i < At'd this county seat in Milton. Santa Rosa County has no OPO rat in t,oustag fioewe author i t y. at. Lucie COUVAT rbs St. Ldeie Autt.s:,ty pa" ietpated is the Authortty•s seri« i tit 1 Sade . isi lee 1992A i saw ascd Series 1991A 1 sow Sad two ��ec++►►r 1 osa sisigle testi lY issnee issued by ours adult iee . St. Lido CbW KY is located as tee asst CONK of /tort4s. ecortb of Nese ftIS •scab Sed sora& of V090 Nee* The cooft soft is R Herne U8 ft, Lathe QntAiw i t y was eat eel t abed as MY as. 99" sr i BOndS, ar,d the R("MI= wi 11 1) )!. I-- src.IiI nd by t_h'7. r= „•.,n4 tee: at_in-I to such Bonds. OTHER PARTICIPATING LOCAL AUTHORITIES Set forth below is certain information with respect t,o the other Local Authorities participating in the 1996 program: Citrus County Citrus County participated in the Authority's Series 1992A and Series 1995 issues and one other single family bond issue issued in February 1991 by another issuer. Prior to 1991, Citrus County had not previously participated in any single family mortgage programs. Citrus County is located on the Gulf of Mexico in the central part of the state, north of Tampa. The county seat is Inverness. Citrus County has not established a housing finance authority. Gadsden County Gadsden County has participated in the Authority's Series 1995 issue. Gadsden County is located in the north part of the state, west of. Tallahassee, and the county seat is Quincy. Gadsden County has riot established a housing finance authority. Hardee County Hardee County has not previously participated in a single family bond program. Hardee County is located in the south-central part of. the State of. Florida, and Wauchula is th(r county seat. Hardee County has not o stahl i sho(l a hou,, iti l t i rr_rric- .rut h_lri ty . Hernando County Hernando County participated in the Authority's series 1992A issue and other issues by other issuers. The County is located on the central Gulf Co.a>t rA Florida. south of Cedar Key and north of Tampa. The cc3unt y tie- at is Brooksville. Hernando County has not .stabli,.hed a hr,usin<j firiance auth,,z oy. Indian River County Indian River Canty participated in the Series i993A and S*t i r . a 1515 a ssuee and one other issue issued is 1904 by Spot bsr i sit :" r , Tt..- COUNty U beat ed on the creat ra l east coast of FiA.r idr, nv.,tt t, of R. fterce and south of Melbourne. and t1r Consty most if! ' .rt; %�acb. ladiao elver County bits slot emabitsbed a � t i t:aty r tYtbioratr . Leon Authority The Leon Authority pa,ticiJated in the A.st.hority's 1981., I999A and B and 19911 issues and has previously issued its own single family issues for prtx11ams, most recently in 1995. t,eon County in located in nolt.h cent tial Florida, between ,Jacksonville and Pensacola, and the county seat is Tallahassee. Marion County Marion County has, through the Housing Finance Authority of Marion County, participated in four previous single family programs issued by other authorit=ies and through its Board of County Commissioners participated in the Authority's Series 1995 issue. Marion County is located in the central part of the state, south of Gainesville and north of Orlando, and the county seat is Ocala. Okaloosa County Okaloosa County has participated in the Authority's Series 1995, Series 1992A, Series 1991A, Series 1990A, Series 1989C and Series 1989A and B issues. Okaloosa County is located on the Gulf Of Mexico between Panama City and Pensacola. The County seat is Crestview and the major city is Ft. Walton Beach. Okaloosa County has not established a housing finance aut}tority. Okeechobee County Okeechobee County has not participated in the Authority's Previous issues. Okeechobee County is located in the south central part of the State, adjacent to Lake Okeechobee. The county seat is the City of Okeechobee. Okeechobee County has not established a housing finance authority. Santa Rota County Santa Rosa Cournty has panticipatrd in the Authority's Series 1995, Series 1992A, Series 191>IA, Series 1990A, Series 19$90, Series 1989A and B, ::.zies 1987 illd Series 1985 issues. Santa Rosa County is located iffmo-diately east of Bacambia County an the Qulf Of Mexico and the county seat is Milton. Santa Rasa county has no apezat iz,(1 housing finance authority. at. 1.uc90 e0401y rJs1 CLS AUtt.bWJty :&rt LCdpUed to ttr Authtoc it y • 6 2013,08 PtsM &6&A* , ; r two 1"3A 16000 sed Mtr ten 1 "LA loom and two er owthowattes. ft. Lweia OmwstyA toO loratted t�an t.1i ONO Comm of rttattdsmans et man Palm trs •. and 601st t* at Were taec& . T%O CNWAM Mat to ft. Itsa*. R- •;'tu ! ! ie AM"ttty V" 089464 "16" as r si. t9". •V Walton County Walton County has Varticipateci in the Authority's Series 1995, Series 1992A, Series 1989(' and Series 1989A and B issues. Walton County is located on the Gulf. of Mexico t.-etween Panama City and Ft. Walt on Beach. The county seat. is DeFuniak Springs. Walton Courity has not established a housing finance authority. DEFINITIONS OF CERTAIN TERMS The following terms have the following meanings when used herein unless otherwise specified. "Acquisition Price" means the cost of acquiring a Single Family Residence from a seller as a completed residential unit, as more fully described in the Origination Agreement. "Additional Series B Bonds" means additional Series B Bonds issued on the Remarketing Date and payable from the Series B Pledged Revenues pursuant to the Indenture. "Application Start Date" means, with respect to the Series A Bonds, March 27, 1996 and, with respect_ to the Series B Bonds, a date specified in the Series B Supplemental Indenture. "Area of Operation" or "Eligible Loan Area" means the area within the territorial limits of the Counties. "Authority's Fee" r,i "Issuer's Fee" means, with respect to the Series A Fonds, a:i annu%sl amount equal to 0.01751 of the outstanding principal '1>.41ance of the Series A GNKA Certificates and Fannie Nae Securities A::; of the date which is 35 days prior to each Interest. Payment Date (as certified to the Trustee by the Servicer) p,syable to the Authority on each Interest Payment Date com"ncing October 2, 1 99(; . "Bond Delivery Date" means the date on which the Bonds are fl -.1 i vorwd 1c) I I,- -r purchasers t hereof . "load Year• n .. r,:: t h" period (i) commencing on the Band I?!^I7v,-jy Date and rr.lar.,a :-pEwher 1O. 1996, and (it) thereafter. .r-ro- t . r- ing on Oct obe t 1 of any calendar year and end l ng on the asst rrdittq September 10, as the cavo say be. e tUdss Resermtiomso sasns the amount of funds reser.rsd by a uori icipsat from its Ot+tsgram Allocation for builders, sub)sct to t tie ).t Ca►f aione of t t- Origt.ostson a greaenot . "iusiasee Day" means &IV day othar thea a Saturday. mod -y. 1.1r 4W uhlah OeeI twee •tdt ems to the Otago. it. M .lett time prtottpal oettee of tar Tevstee. toe M Investment Agreement Provider or the c^rvicer lc;cued are authorized by law to close, or a day on which the N,!w York Stock Exchange is closed. "Cash Plow Certificate" means cash flow projections using the )egiiiiements required Ly Mocdy's to maintain the current ratings on the Bonds, prepared by independent certified public accountants or financial consultants approved by the Authority indicating that sufficient revenue will be generated for each Interest Payment Date to meet expenses ani debt service requirements for the Outstanding Bonds, and other available assets of the Program are sufficient to cover outstanding liabilities for each Interest Payment Date thereafter. "Certificate Acquisition Period" means, (i) with respect to the Series A Bonds, the period commencing June 1, 1996 and ending on May 15, 1997 (June 15, 1997 with respect to Targeted Proceeds), unless extended as provided in the Indenture; and (ii) with respect to the Series B Bonds after the Mandatory Tender Date, the period specified in the Series B Supplemental Indenture; provided, however, that in each case the Certificate Acquisition Period shall end no earlier than 45 days after the end of the Origination Period (or such lesser number of days acceptable to the Servicer). "Certificate Purchase Date" means the date (which shall be a Business Day), established by the Servicer pursuant to the Indenture, on which the Trustee purchases one or more GNMA Certificates or Fannie Mae Securities pursuant to Section 1.11 of the Servicing Agree--ent, which date shall occur at least once each month (assuming the Servicer: tenders a GIM Certificate or a Fannie Mae Security for purchase!) during the applicable Certiticate Acquisition Perjod. "Certificate Purchase Price" freans, when used with respect. to a purrha€se from the Servicer, (i) with respect to the Series A Mortgage gage Loans, the purchjr ;,.- price of each Series A GNKA Certificate and Fannie Mae Security in an amount equal to 99.15! of the aggregate unpaid balance )t the Series A Kartgags Loans comprising tfm Pool backing a Sriies A GNMA Cert it mate or Fannie Mae Security as of the first day of the month in which such Series A GNMA rest 11icate or Fannie Nae Security is purchased (atter taking int r, account any scheduled principal reduction required on the Series A Mortgege Loans on ttw first day of such month) or, as described to the Indenture as of the first day of the precolinq month, as certified to t.tw Trust—bythe Servicer with respect to muck series A OMN Oertifieatee aParente Ilse securities, lW arrRwedLmtlr+est to, but not includtoq, the Certificate .t gad til$ with "wWwct to Ow Series b Nortops hoaem. the 7), t;ase g t -1r-e met forth to the Series d ou"1 t• 111dmmture 'C0400 +seams %6W Interval •ey100100 lade st 10". " 0000dsd. . a . 1 •t tear V443014190te4 clwislmde '. ass all ieiP""t &am 4sIV swatted by tin OsmV of tits W64Mtet •9 s Each reference to a section of tha Cf-Kie herein shall b - include. the United States Treasury Regulations proposed r in effect with reelect thereto and applicable to rho R,-)ndrx ri)r the use of the proceeds thereof. "Commitment Pee" means, with respect to the :series A B�ncfs, the program participation fee submitted by each Participant to the Authority in connection with its Offer to Originate in an am,:)unt equal to 1.001 of each Participant's Program Allocation not subject to Builder Reservations and an amount equal to 1.501 of each Participant's Program Allocation for Builder Reservations, which amounts are not refundable, except to the extent offset by amounts paid by Mortgagors or sellers as discount and origination fees or - paid by the Servicer in the Mortgage Loan Purchase Price as provided in the Origination Agreement or by transferee Participants, as provided in the Series A Origination Agreement, and, with respect to the Series B Bonds, shall be as established in the Series B Supplemental Indenture. "Commitment Period" means, with respect to the Series A Bonds, the period during which Commitments must be issued by Participants in accordance with the provisions of the Origination Agreement, commencinct on the Application Start Date and ending (i) 12 months after the Application Start Date for Builder Reservations and all other funds other than those originally reserved for use in Targeted Area, or (ii) at. the end of they Origination Period for funds reserved for use in Targeted Areas, unless Such period is extended Ly the Authority. "Conventional Mortgage Loan" means a Mortgage Loan other than an FHA/VA/RECD Loan which meets the requirements of the Origination Agreement and Fannie Mae. "Counties" mean: thr• Counties of. citrus, Escambia, Gadsden, Hardee, Hernando, Indian River, Leon, Marion, Okaloosa, Okeechobee, Santa Rosa, St. Lucie anti Walton, or any of them, and any other part:icipat inq counties dt-signated by the Authority for part icipat ir.n in rh- Program. "Current Annual Family taoome' means the total current aranu rl i rt d i r;r;1n=.v .;i t t..• ry . t t gage: and all adult members of a t,aniay residing or intending to reside permanently in the Single I-attiiy Residence tram whatever source derived and before taxes or wit htyoldis�s. Pws Por purpoof this definition. *current amnialiaed rw'L ms* includes Prisy employaemt ayp earniand rec�og"sable -,evoodary Iscome such as bmusee. oasiasio O. Overtime. part - t it aurniats, dividends, interest. royaltles. peastaws. VA cospeneattew a:, t t rvwt.al income, other Looms !such as al tuaay. child si.W > , public asstetawn. std psy. social sscyrlty bare Its. INIe0, ! ." --nt 0001pswsat too. to omm revsiVed twos trusts asd mcome rawa ved 11;'m hirtaree aft Nit Cas 0r tiwstwome. volt tawt im of rdA4b 40 r .+.4440 hosed aw tor+wMble va80ss edrart4=ffIos Osrd "M as i Ago, 'a ati tdswit to ar& 098801, x11 do carirted at M the tiro of application for ;a M'ir:tgagf- lr.>an, and con fitiried At- the time of Closing. "Eligible Persons and Families" reans a person or persons arvi family or families (i) intcndi-nq principally :and perrranently to reside as a household in a Single Family Residence; (ii) WIIO3P total Current Annual Family Income does not exceed the Maximum Current. Annual Family Income; and (iii) with respect to each Mortgagor who purchases a Single Family Residence not located within a Targeted Area, each Mortgagor is a First Time Homebuyer (provided that Participant may originate Mortgage Loans to borrowers other than First Time Homebuyers in Targeted Areas). "Excess Revenues" means revenues described in subparagraph (v) under "THE INDENTURE -- Flow of Funds," above. "Excess Service Fee" means that portion of the interest on Loans bearing interest at a rate of 7.12% and 7.65% which exceeds the sum of the Pass -Through Rate and the Servicing Fee. "Fannie Mae" or "FNMA" means the Federal National Mortgage Association, a corporation organized and existing under the laws of the United States, or any successor thereto. "Fannie Mae Guaranty Fee" means the annual fee equal to 0.25t of the outstanding balance of the Conventional Mortgage Loans in a FNMA pool payable monthly to Fannie Mae by the Servicer in connecticn with the, issuance of a Fannie Mae Security. "Fannie Mae Security" means a single pool, guaranteed mortgage pass-through Fannie Mae Mortgage-backed security, providing for the regularly scheduled monthly payments and any prepayments thereunder with the final regularly scheduled payment thereunder to be made not later than ,June 30, 2027 Ojnles!i the Certificate Acquisition Period is xt" riJF d as provided in ;h-- indenture, in which case the Fannie Mae Security shall mature on or before such date as shall be reflected in the verification report submitted to the Rating Agencies in connection with such a-xtension), bearing interest at the Pias -Through Rate unless diffeaent rates are deterained upon ext.etwion of the Cartificate Acquisition Period as provided In the I ndeMure, issued by Facade Mae in book -entry forei, recorded in the nabs of tbs Tnotee or its no■ i nee for the benefit of the Dand elders as part of the Trust Satate, guaraateed as to tiaoely punt of principal and interest by Fannie Rae and backed by conventional Nwt Loana in the related nortgage pool, with a l x t . r a. ) cabs eaatv!r i t.y date :i: t later than Jens 1, 2037 and to any pvt.! t."t lstfa t):.+=s 60 da;e: i -fore itual Solid saturity. eor"" ro .... . i f"de! _a l a:r Aftla1Kratlo• of the U.S. !h-1-1 ! flu t!t 1 ., .. t l Og at bast �� to "Fixet Time Homebuyer" —mans a Mt,rtga aor w1:t> has n r. )ia i an Ownership intelest in a ],rir;cipal feesidence at any tip- di.;rin•I the three-year period ending on the date: the Mortgage is executed, as more fully described in the Origination Agreement. OOMMA" means the Government National Mortgage Association, a wholly-owned corporate instrumentality of the United States within the Department of Housing and ilrban Development, Its powers are prescribed generally by Title III of the National Housing Act, as amended (12 U.S.C., 5§ 1716 et seq.). "GNMA Certificate" or "Certificate" means the fully modified GNMA II Mortgage Pass -Through Certificate (or the electronically transmitted confirmation provided for hereinafter), issued by the Servicer in exchange for Mortgage Loans and in the Form of Appendix 39 "Single Family Mortgage -Backed Certificate" of the GUM Guide, as defined in the Indenture and registered in the name of the Trustee or its nominee and guaranteed as to timely payment of principal and interest by GNMA pursuant to Section 306(8) of Title III of the National Housing Act of 1934, as amended, and the regulations promulgated thereunder and based on and backed by FHA Insured Mortgage Loans, VA Guaranteed Mortgage Loans or RECD - guaranteed Mortgage Loans made by the Participants with a final maturity date not later than May 31, 2027 (June 30, 2027 as to Mortgage Loans from Targeted Proceeds). In the event the Servicer so elects by notice to th=e Trustee, "GNMA Certificate" shall also mean fully modified GNMA I Mortgage Pass -Through Certificates (or the electronically transmitted confirmation thereof). if the Servicer delivers a GNMA Certificate which is in a denomination that is les: than $250,000, the Trustee may conclude that GNMA has approved such lesser amount. In the event- GN14A so requires, pursuant to GNMA's bc:ok-entry system, in lieu of the aforesaid certificate, the confirmation of GNMA's quaranty obligation shall be t:ranssmitt(,cd to the Tiust-ee, or it:; nominee, e1mc-tronica11y. "GNKA Guaranty" means the on._- nr more guaranty a<ireements of GNM.A s"t iotth on ,-act, of the GNMA Certificates (unless in book entry forth) pursuant to which GNHA has agreed to guarantee the t imwly payment of (sNYA cast t if icates. "GNNA Guide" --Anti the GNM 1 or COM 11 Mortgtge-sacked Securities Guidr c;r 4uides then in off --t on the date of its application, it any, under the Indentur-, •Oowrxcmarsatal Obitgations" i- i; —_•t general obi igat ions of , of abligattone the tin* ly t ,, r.t of the prtocspa I of aM Titof a e:t tart atsi r!s aT• un -e=dit d, t..r l l y guaranteed by. the United :'t at : � t t. at the t ler• are 140941 investments under t ho ! awa , t t }„ <. ±or the w10Myo p r.opoeed to be taMeeted 6s "Interest. Payment Date" -.-ans, ( i ) Apr i 1 i incl October 1 of each year in which ;' i;d are (hatstandir,rl i--P_;innilzg October 1, 1996. "Investment Agreements" or *Investment Agreement" r-eans the Series A Acquisition Y1111�i Investment A,Ireement, th^ `>eriee A Pror_€°eds; Fund lnvestmont A(Ireement. and the Series A General Investment A(Ireement, as well as any substitute investment agreement provided with respect to the funds and accounts established pursuant to the Indenture, provided that any such Investment Agreement must be provided by or guaranteed by an entity (including an affiliate of the Trustee) whose senior unsecured debt or short term paper, as the case may be, is rated P-1 by the Rating Agency for an investment agreement of less than one year; for an investment agreement of up to two years from the date of the Bond Closing, any entity whose short term unsecured debt is rated P-1 by the Rating Agency and long tern unsecured debt is rated at least A2- by the Rating Agency; and for an investment agreement of more than two years, an entity whose short term unsecured debt is rated P-1 by the Rating Agency and whose long term unsecured debt is rated Aa2 by the Rating Agency. The Trustee shall notify the Rating Agency rating the Bonds of the substitution of any Investment Agreement thereunder., which shall be accompanied by an opinion of counsel to the provider of such substitute investment agreement, in form acceptable to the Rating Agency, as to the enforceability of such substitute investment agreement. "Investment Agreement Provider" shall mean, collectively, the providers of the investment Agreements. "Investment Securities" means any of the following which at the time of inveetme,nt are legal investments under the laws, of the State for moneys held under the Indenture and then proposed to Ise invested therein: (i) Governms:-tstrll obligations; (ii) Trustee's cash management mast(--i repurchases agreement (provided, that the entity entering into the repurchase agreement meets the following rating requirements of Moody's: for a term of greater than 2 years: at least A&2/P-I.; for a term between I and 2 years: at least A2/P- 1; and t,�r a term of less than 1 year: P-1); (iii) bonds. deb#a Yo ute i;, totes or other evidences of indebtedness (other than intptest-only strips) issued or quaranteed by any of the following frd.tal agencies: Federal Now Lean Mortgage oospotation iseniot d.b—nt urea only) , the GOVOctttsOnt National Mortgalp Associat ion. F+.detal Rational W)rtgage Association, P•deral Haar Loan Banks. (iv) master repurchase agreswsnte *#--,red by lovertal Qbiigat icons which have a fair warltet Yalta- ' S ,Of .ne cash Paid for s4c h i nv. steent (provided. that the —! : ' =scrag lute such re,pul chase sqe $ ,seta woe the r'ePtirew-4. _ forth to clause (i i) st+ovel a (v! the tol loving t.awmetimm a. t e imsur+sd by the Todwr r l Impoett I"oureatce owporst law: cert t t , _ ALM of dopmett. savings a= moots. deposit woorote or dspost gem&-vto bavum css igi€aa that u€ it &MO Ot 001t IMMIe t6M if% day. ar 9edW9611r Or etaR/ cahslt.i..ci l.at.itA of ECwt oslnpO jee Itaet++" Clio Tivetae er elttitst.AWs barest $ . "+rasp awe too* aesortat teas "A wit cal 61 C7 savings banks wit h Capital suriIltts And undivided profit _ `. not less than $100,000,000, provided the unsecured obligations of any such institution are rated 1'-1 short tern or hett.er by thai Rating Agency; (vi) the Investment. Ajreempnt; and (vii) any other investment which would not adversely affect the rating on the Ponds. "Mandatory Tender Dates" means the date or dates established by the Authority for the mandatory tender of. the Series B Bonds, which date shall be on or after January 15, 1997, but not later than April 1, 1997, as designated by the Authority in accordance with the Indenture. "Maximum Acquisition Price" means: Non -Tara eS pd -Axe�a Taigetcd Ureas New Existing New Existing Hemes Homer Homes Home Citrus County $106,366 $98,523 N/A N/A Escambia County 106,366 98,523 $130,002 $120,417 Gadsden County 106,366 90,056 N/A N/A Hardee County 106,366 98,523 N/A N/A Hernando County 88,680 83,491 N/A N/A Indian River County 106,366 98,523 130,002 120,417 Leon County 106,366 90,056 130,002 110,068 Marion County 106,366 98,523 130,002 120,417 Okaloosa County 106,366 98,523 N/A N/A Okeechobee County 106,36E> 90,056 130.002 120,417 Santa Rosa County 106,366 90,056 N/A N/A St.. I:ucie County 92,644 95,683 11.3,232 116,945 Walton County 106,366 98,523 N/A N/A which amounts may kx� redetermined by the Authority and provided to the Servicer for dissemination to Participants, from "Safe Harbor* average area purchase prices published fres time to time by the United States 'Tzeasury rx�partment or from surveys or other crrApilations of acquisition prices that in the opinion of i-cogriiz�d counsel represent acceptable wethr,ds for detertaination of such average acquisition prices for purposes of &action 143 of t her Cbde and in compliance with any requirements for each County. Arquisit ion Pr i, i iasits are also subject to the applicable FKA/%IA/>+ECU lit,..' I -r each County. *K&XJarsm: c"; r.rit Annual Vanity &no~ nomm. with respect to Series A ti• ; - LL. originated an sw and eaisting Single Putty SeeW. , - , the applicable Baits as stated below. which 40000"bs r terulwd by the authority aid provided to the Mases Eos aiao: M&Aatmw to parsictpaexs. trrs stat• aedir i.ose. 949MOO pwbsireeers by tis esut.d Iltatass Depestasat of lions♦ Md GV600 hew la jmswt t rmw tins to t tew - N • Two-thirds (in principal amount) of Mortgage Loans originated to finance Single -Family Residences located in Targeted Areas are subiect to the income limits set forth above, with the remaining 1/3 subject to an annual income limitation equal to 150% of t} -.e applicable median family income subject to redetermination by the Authority as provided above. "Mortgage Certificate" shall mean a GNIMA Certificate or .a Fannie Mae Security. "Mortgagor" means any person who has a present ownership interr�st in a Single Family Residence subject to the related Mortgage and/or executes the Mortgage (but does not include any person who exf-utes> only th,t Mortgage Note as a cosigner or ;uarant_or and wf;rl dr r; not h:Avr-• ,a present ownership interest or who doer. n.tat_ ,-r...-cute th.- M'.at-gage Note although executing the Mt)r tgarle) . "Mortgagor's and Seller's Certitic&tionsa means the tons of Mortgay>r's Certification, Mortgagor's Affidavit, and Seller's Affidavit, substantially its the totV attached to the Origination Agre,orwnt . -Otter to Originate" +.assns the Offer to Origlaate Single Family Mort gage Luac s and as�r allodmont.e thereto pisstts>ett t0 Balch a Part i r i paint of!* r a to origlaate Mortgage Lamm is ao vwdettoie ttl t o t t:;vI*S''r,y � I t t.r 0r1,9LdM{tlpq Ag.Tessegt . 'urifiratium wqresssate means. collectively. the eartee A w stgPlaret theme Nias4" meet eet to M%~ taw oK 4% lis:n-iAla s<tPt {L^'A, 1 or 2 3 or More I or 2 3 or Family Family Family Farr ily iit<IISLf:Z$ MembEL7; tea.. LfZ.`L Citrus County $40,000 $46,000 N/A N/A Escambi.a County 40,000 46,000 $48,000 $56,000 Gadsden County 42,900 49,335 N/A N/A Hardee County 40,000 46,000 N/A N/A Hernando County 40,000 46,000 N/A N/A Indian River County 40,400 46,460 48,480 56,560 Leon County 42,900 49,335 51,480 60,060 Marion County 40,000 46,000 48,000 56,000 Okaloosa County 40,000 46,000 tV/A N/A Okeechobee County 40,000 46,000 48,000 56,000 Santa Rosa County 40,000 46,000 N/A N/A St. Lucie County 42,700 49,105 51,240 59,780 Walton County 40,000 46,000 N/A N/A Two-thirds (in principal amount) of Mortgage Loans originated to finance Single -Family Residences located in Targeted Areas are subiect to the income limits set forth above, with the remaining 1/3 subject to an annual income limitation equal to 150% of t} -.e applicable median family income subject to redetermination by the Authority as provided above. "Mortgage Certificate" shall mean a GNIMA Certificate or .a Fannie Mae Security. "Mortgagor" means any person who has a present ownership interr�st in a Single Family Residence subject to the related Mortgage and/or executes the Mortgage (but does not include any person who exf-utes> only th,t Mortgage Note as a cosigner or ;uarant_or and wf;rl dr r; not h:Avr-• ,a present ownership interest or who doer. n.tat_ ,-r...-cute th.- M'.at-gage Note although executing the Mt)r tgarle) . "Mortgagor's and Seller's Certitic&tionsa means the tons of Mortgay>r's Certification, Mortgagor's Affidavit, and Seller's Affidavit, substantially its the totV attached to the Origination Agre,orwnt . -Otter to Originate" +.assns the Offer to Origlaate Single Family Mort gage Luac s and as�r allodmont.e thereto pisstts>ett t0 Balch a Part i r i paint of!* r a to origlaate Mortgage Lamm is ao vwdettoie ttl t o t t:;vI*S''r,y � I t t.r 0r1,9LdM{tlpq Ag.Tessegt . 'urifiratium wqresssate means. collectively. the eartee A w stgPlaret theme Nias4" meet eet to M%~ taw oK 4% with pt of=f-ds of the :'crit=s B I=cn:i, c,r any Additional Ponds. "Origination Fee" -:ears a fee not in excess of It of the original principal amount of each Series A Mortgage Loan bearing interest at a rate of b.65% and '7.65% per annum, to be retained by the Participant as partial compensation for originating each Mortgage Loan, payable in the manner provided in the Origination Agreement. "Origination Period" means, (i) with respect to Mortgage Loans originated with proceeds of the Series A Bonds, the period for the Purchase of Mortgage Loans from the Participants by the Servicer commencing on the Application Start nate and ending on April 1, 1997 (May 1, 1997, in the case of Mortgage Loans funded from Targeted Proceeds), unless extended as provided in the Indenture, and (ii) with respect to Mortgage Loans originated with proceeds of the Series B Bonds, the period for the purchase of Mortgage Loans from the Participant by the Servicer commencing on the applicable Mandatory Tender nate and ending on the date twelve months following such date (thirteen months with respect to Targeted Area Loans), unless extended as provided in a supplemental indenture, in each case, with 60 days' notice to, and the written consent of, the Servicer; provided that each Origination Period shall end at least 30 days prior to the end of the Certificate Acquisition Period (unless waived by the Servicer). "PMI insurance" shall mean private mortgage guaranty insurance requited in connection with a Conventional Mortgage I.cr3n. "Pass-Through Rate" m+aans that rate of interest stated on a Serie:; A G'MA CertiIicat_� or a Fannie Mae Security equal to 6.15% per annum. "Planned Unit Development• or •PUD* m-Aans a real estate development of c p:ir at. ] y owned lots, with: ( i ) cont iquous or noncontiquoas areas ()r facilities usually owned by an owners, association in which th- owners of the lots have a stock or t*embership interF :;t ; (ii) title to the real estate under the dwelling unite being held by the individual lot owners and not by the owners, association; (iii) th0 association having title to and mdainisteri,aq the caxnoon areas, and levying amthly charges against the lot OWUS Is for common areas expenses; and 9iv) membership in + he owners' association not being serrered t roe the ownership of an r,dividu',] unfit. "Ylmdg*d ltese®IIMe srsaOs, collectively. the fence A Pledged a: ,. .. • . series a Pledged levessase. tUs Mostgaps Lamme bold ae past of a us Pavexes 8100 peel of bboeteave Ld 0 . abseA 09 WIWI0 ilk blest tt te+0tes as Pss>Rie 1800 M "Pool Purchase Contract" -leans the Fannie Mae Pool Purchase Contract l -t -ween the ,;frvi_(-rr and Fannie Mae relating to the sale by the Servicer of onvent ic.na:jr l MtgagVit e Loans to Fannie ae a cnd the servicing thereof "Principal Prepayment" means a payment of principal on a GNMA Certificate or Fannie Mae Security in addition to regular scheduled payments of principal. "Program Expenses" shall mean, collectively, the Authority "ren and the Trustee's Fees, including the Rebate Analyst Fee. "Purchase" means any purchase by the Servicer of a Mortgage Loan )pursuant to the Origination Agreement. "Purchase Date" means the date on which a Purchase of a Mortgage Loan by the Servicer occurs, which dates shall be established by the servicer during the Origination Period, as set forth in the Lender's Guide; provided that the Servicer shall establish at least two Purchase Dates per month during the Origination Period. "Rating Agency" or "Moody's" means Moody's Investors Service, Inc., its successors and assigns, and, if such entity shall for any reason no longer perform the functions of a securities rating agency, "Rating Agency" or "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency de.,;ignat.ed by the Authority. "Rebate Amount" means the amount calculated pursuant to the Indent.uie required to be paid to the United State_,; of America puz:ruant to Section 148(f) of the Code. "Rebate Analyst Fee" m-s,ans the fee charcied by the Rt -bats Analyst fur i_t..; .;,-i-� "RECD" tt:ans 11'- Rural Ecoriumic leve:loptrwnt Agency, toim—rly known as t.ha• Farmer:; Iicme Adminiattati(,m. *Record Date" Nana the fifteenth day of the month next prereedit.y Any Interest Payment Date tar the date of ssloctiom of F (,nde for redemption. to the event Bads ars to be redeemed on of her than an Interest Pey+meatt Date), provided that with respect to overdue interest or interest due on any ove-edue amount or on othez than a tPWI&r Interest Payment Date, the Trustee may establish a spec i o 1 t erord date of mot more than 20 days before the date set "Rea►arket teas Dante meale40z4ate or dates mom or atter Jasrary i . , i • v 9 imslndtp i l 1. t"7. ss LocuW by t6o Memssist amO w : t bl tis ee 000Mlrrlesa0 oet tOe MK Qas t t y. ore U%&Cb fit• all or i of tis lanes S Bswes 0ia11 be asb)eet to a ;t M : • 1 IUtlet io" a to tie tsirmr am amd raaeaswa we •V which Remy- iketcci B }aids shall b:n subject- to t:he proviai-ct4 of the Series R Su}'(Slt*ilentdi Indenture t') k Pxerut.ed in crrnnecfinn therewith. "Remarketed Series B Bonds" means Set -ins B tionds which have been tendered and t;�T-Aarketed pursuant to the provisions of the Indenture on or prior to April 1, 1997. "Series A Subaccount of the Acquisition Fund" means thn subaccount by that name created pursuant to the Indenture. "Series A Acquisition Fund Investment Agreement" mean, that. certain investment agreement between the Trustee and the Acquisition Fund Investment Agreement Provider, pursuant to which the Trustee shall invest moneys held in the Series A Subaccount of the Acquisition Fund as provided in the Indenture and any substitute thereof. "Series A Acquisition Fund Investment Agreement Provider" means Assured Return Management Corporation, or such successors or assigns thereof which will not have an adverse effect on the rating of the Bonds. 'Series A Bonds" means the Authority's Single Family Mortgage Revenue Bonds, Series 1996 A (Multi -County Program), dated March 1, 1996. "Series A General Investment Agreement Provider" mean,, AIS; Matched Funding Corp., or :;uch ;ucc ::>ars or t:;:;igrls thereof which will. not have an ad•.•erse effect on the radio# of thy. Fonds. "Serios A GNMA Certificates and Fannie Mae Securities" means GNKA Cor tificate-s and FaIT) ia.• KASocu I it. iv.,; f,; with fun -is o:I deposit in the Serir.s A Ac:cluisit.ion Fund. "Series A Origination Agreement" means, cc)11•+ct. iv,•ly, all of the mortgage U:ictin,t.iorr i+',r.., nt:s, dated as of Mtt,•h 1, 1496. by and amnng the Authr�rity, each of the Participant;, th•• custoe and thr Srtvicer, as amended and supplemented. *Series ti Plefted Revenues' means (a) ( i) all i ayments of principal of and interest an the Series A GIA Certiticates and Fannie Me* Securities, and any pe t received from t7/1A pursuant to the Series A GO M {guaranty from Fannie lire pursuant to the Series A Fannie Koo "ranty and all otter not proceeds of such Series A t31M certifscotes MW Fannie Mee securities. (11) amounts r oqu i t ed t r, be depw .ted on the lord tee i i veOuts in the hs� and accz,ut.ta related &'duly to the Series A �oade pur'r•MM to the I n4ow ut e ! rx her tAan Uw Cost of leouance AMM. tAr labete FNIId and t he. i,t oqt an @mVeeSa lumW . ( i i 11 iaoa ms of Later mat easy" rite zt ha t e. i : aed lay aw-ap 99 Les�sSif• Mdfeeed = twunstammW e�u t t t , es he 14 to It M t uwr ad S/IOwWI SeLat tw eelely to hire 3e t lob k b a l'Is ' 10, "apt ensrte ie UW time ftec Ur rVapd>w Expense Fund and th.-. Cost. securities and funds (exce rocaram F.xpenr:t. Fund and t h Tru!tee under- th=- lndentine solely to t. he Series A Hund funds held in the Series A Mandatory Tender Date, all Remarketed Series B Bonds, Series B Bonds. of issuance p Pt amounts e Cost of I in the ft s and (v) a Reserve A Series B all on a p Ftrnd) , (iv) all moneywr in the Rebate firma, the ssuance Fund) held by thn fu and accounts related 1 moneys, securities an_) cc:ount, and (b) after the Pledged Revenues :securing arity with the Remarketed "Series A Principal Prepayments and Excess Revenues" means (i) Principal Piepayments with respect to GNMA Certificates and FNMA Securities purchased with funds on deposit in the Series A Acquisition Fund, (ii) Excess Revenues with respect to payments received on G&'MA Certificates and FNMA Securities purchased with funds on deposit in the Series A Acquisition Fund, and (iii) any revenues that constitute Series B Principal Prepayments and Excess Revenues after the Series B bonds have been paid in full. "Series B Acquisition Fund" means the acquisition fund established after tht, Mandatory Tender Date with respect to any Series B Bonds which remain Outstanding. "Series B Acquisition Fund Investment Agreement" means any investment agreement governing the Series B Acquisition Fund. "Series B Acquisition Fund Investment Agreement Provider" means any provider ul a Series B Acquisition Fund Investment Agree-ent. "Series B Bonds" means the Single Family M<>rtgage Revenue Bonds, Series 1995 13 and any Additional Series P Bonds issued pursuant to the indenture. "Sarils 8 GHMA Certificates and Fannie Use Securities" means M.A GNt'�crtificatf>s ,,r.d };inn ,! M.+= cur it. ie purchased atter the Mandat.ol y Ton+fr� ll,++ with fund:; :; �-11?, t: ::it. in the Series B {'r c:x;awd Fund. "Series 8 Pledged Revantuse' omenta (.t) .+: to the Series B Bonds r,t t,ryr -than Remarketed Series H Bonds W the Series B Proceeds Fund l r've�t mast A41VOOMMrt aid ! i i) all moneys, securities and funds (exr•ept amounts La the Roebate Fund. the Program UpenN Fuld and the Cost of tesuaance Pundi 'held by the Trustee under the Indenture ir, tete t� and accounts related solely to the fors!! • bonds and (b) sa to the Remarketed Settee a Bawds following the applicable Mandl, ury TAwAar tats. (i) all paVwonta of principal of and ,t tr t e at ata Cbl Macioa s GROM art e t ! es taand Fumnio Nes t a ee, Md MW pay me at reco l ved from LAMrt to t he �w ,lust ir.r y a" ft"t Faoate era! pars mn to tingnraraat et Mr Nat prune " of � terla+s • � tits i t &Amos Mas b�sawit ase. (a i 1 cin' a and to be I�n�ltr as gas MA:r Wtory l+eftew pat.! to too twos �lcaanets #Ofsted oslely to 60 the Felies B Binds puisuint to th, Indenture (other than the Cost of Issuance Fund, thn Rebate Fund and the Progran Exp -,nae Fund), (iii) in(-01ne or interest aarned aril gains realized in excn$a of 1ci'ssaes= suffered on Investment. Securities held in the funds and accounts relating Solc*ly to the Series B Bnilds (except earnings on the Program Expense Fund, the Rebate Fund and the Cost of Issuance Fund), (iv) all moneys, securities and funds (except amounts in the Rebate Fund, the Program Expense Fund and the Cost of Issuance Fund) held by the Trustee under the Indenture in the funds and accounts related solely to the Series B Bonds and (v) title Series A Pledged Revenues; all on :i parity with the Series A Bonds. "Series B Principal Prepayments and Sxcess Revenues" means (i) Principal Prepayments with respect to GNMA Certificates and FNMA Securities purchased with funds on deposit in the Series B Acquisition Fund, (ii) Excess Revenues with respect to payments received oil GNMUI Certificates and FNMA Securities purchased with funds on deposit in the Series B Acquisition Fund, and (iii) any revenues that constitute Series A Principal Prepayments and Excess Revenues after the Series A Bonds have been paid in full. "Series B Proceeds Fund" means the fund by that name created pursuant to the Indenture. "Series B Supplemental Indenture" means an agreement supplementing the Tru. --t Indent=ure for the purpose of providing the rates, maturities, redemption provisions and other details of the Series B Bonds and any Additional Series B Bonds, adopted in accordance with the Indenture. "Servicer Premium" means an additional payment made by the Servicer ill conrie:ct.ion with the purcha:-e of Mr_,rtgage Loans bearing interest at 7.12% or '7.651 per annum. "Servicing Fee" means a monthly fee equal to one-tw-,lfth (1/12) cf .50% of the aggregate outstanding principal balance of the Mortgage Loans, which tee is rrtained by the Servicer as providoad in the Program Administration and Servicing Agreement for services rendered thereunder, and which fee includes a (;lm q+uaranty fwe or a Fannie Mae guaranty tee, as applicable. "Siri�la Family V*sidwnc*O means a now or existing residential urW w h l , h IV t ., ; ,ri aa; , .a l property under the lava of the State. whi.-h `exr*,l ieb w i l h the f ,1 isfinat ion Agtnaanimmit and %Rich is located wi t hin t he, Ll igtt:le Loan Atw. inciudiaq a unit to a caldoetat%s or Plaaeled Unit De"lapAYsat inq Ono of FAM10 Nae standards, and a c COW a1.,1 a to MA. %% or MM, ae appl i cable . but not tae 1 udtaq tW*-. thre:- or COW -Cantly twtd8QCOG. sad a.w "*Jp of q&1<cb Is Am too sl"pte. sad land afpurtmeaat to the •es►Aeat tal snit. its (i� t� t yt •iy tot rsstaeat Cal hoetrat by lit *Wwatesl as pt+eotd♦d to to oridttft t4s I1p.e.OK to Law as elp" ad wef u1 M* of est lar t*Aft t1A&Vty ISS1 yes -. (Crit VLtetls will so eseilptod a tan Mortgagor as his or her principal residence within a reasonable time (i.e., not. later than Sixty days) after the Closing Date of the Mott -gage Loan, (iv) the Acquisition Price of which does not exceed the Maximum Acquisition Price, and (v) the land appurtenant: to which seasonably maintains the basic livability of the resi.dpnce and does not provide, other than incidentally, a source of inco-- to the Mortgagor. A Single Family Residence is "new" if it has not been occupied prior to the issuance of a Commitment to a Mortgagor for a Mortgage Loan financing such Single Family Residence under the Program. A Single Family Residence is "existing" if it has been occupied prior to such Commitment. "State" means the State of Florida. "Targeted Area Allocation" means that portion of the Participant's Program Allocation which must be used to make Mortgage Loans in Targeted Areas, as designated in such Participant's Notice of Acceptance. "Targeted Areas" means the areas within the Counties listed as Qualified Census Tracts, as described in the Origination Agreement. "Targeted Proceeds" means that portion of a Participant's Targeted Area Allocation, for which Mortgage Loans have not been originated on or prior to April 1, 1997. THE INDENTURE The following is a summary of certain provisions of the Inclenture and is qualified in its entirety by reference to the Indenture. For a dec>cription of certain other provisions of the Indenture, see "THE SERIES A BONDS," "THE SERIES B BONDS" and "SECURITY FOR THE BONDS." hetein. Transfer and Exchang® The bon" may be presented for exchange at the principal carporate trust office of the Trustee which is constituted and appointed the Roel Registrar of the Authority. The Trustee may require payssnt of a sum sufficient to cover any •:proses incurred in makins such transfer or enchan9e. any tax or other governmental charge t may be imposed in relation thereto but say not impose gay otbar service charge or fee. The Authority and the Trustee Y nowt be required (i) to issue, transfer or eachalge any Bonds danag a pa r is ad til axaM at the Record tate and ending on the T t+t -:art Y a yment Date or obs period eosmsme ing fifteen 41s) daps i" : , Y to t tte day an mihlcb Un applicable sot too Of redespt ice is gjvst, and rnding oA t!r dst* sued sotiCO is 91•OIN. or kill to t r ami e t us a actaaaage gal► Bamds selected. ea l led or be tsg ca l led ton s�sdsmot ice is %*A" Or to part . Tl i In the event. any Rc•�nd is -tit -flat-ed, 1--;t., stolen or 4ent.roy-0, at the request of the owner ot any such Ilona,. the A_rth7rity M.ay execute (if the Trustee dc;es not. have executed Hnnds in ._ possession) and the Trustee r' -ay authenticate and deliver a new of like date, interest rate, maturity and denomination as that which was mutilated, lost, stolen or destroyed; provided that, in the case of any mutilated Bond, such mutilated Rond shall first be surrendered to the Trustee, arid, in the case of any lost, stolen or destroyed Bond, there shall be first furnished to the Trustee and the Authority evidence of such loss, theft or destruction satisfactory to the Trustee and the Authority, together with indemnity satis=factory to them. In the event any such Bond shal.1 be about to mature or have matured or been called for redemption, instead of issuing a duplicate Bond, the Trustee may pay the same without surrender thereof. The Authority and the Trustee may charge the owner of such Bond their reasonable fees and expenses in this connection. Series A Acquisition Fund (A) Moneys in the Series A Acquisition Fund, which will be held in trust by the Trustee, shall be used solely to purchase Series A Mortgage Certificates arid to provide a portion of the moneys required to pay interest due on the Series A Bonds or to redeem the Series A Bonds in accordance with provisions under the Indenture. (B) Series A Mortgage Certificates shall bfl purchased by th,> Trustee from the Servicer on a Business Day to be selected by th Servicer not exceeding five times each month during the Certificat:° Acquisition Yericd. The purchase price of each Series A Mortgage Certificate shall lie an amount equal. to the Certificate Purchase Price as defined in the Indenture. Series A Mortgage Certificates shall be purchased only if (i) the purchase of th-t Series A Mortgage Certificate is being effected during thr. [`<<rtificate Acquisition Period, and (ii) the Trustee has recei vpd f;am.- clay funds in an amount sufficient to pay to the .Servicer t. h- C -r t. i f i tate Purchase Price for each Series A Mortgage C'r't t i f i( -At r° la - ng purchased. (r') On each Certificate Purchase Date, the Trust** shall trannfer from the Series A Acquisition Fund lit to the subaceount f t hp Reserve Account related to the Series A Bonds an amount equal to 0.504 of the principal amount of each Series A Mortgage restititate to be purcbseed on such Certificate Purchase Date, to tw appited as Pswtdsd to tbs Iodsaturs, and (it) to the Ooet of l asuaruas Pond an amount equal to 0 . 3st of the pr anotpal amount of a< h set a*a A Mortgage Hest itic"AR to be parcbse" (t ) Ttre rriastse d"I I mot purebsse a met too A�ss e r t r t a, a t r aserspc eA a Qeft 9f Coate Pattehsss Dat a arc O& l y� *US— ** t t h*- t' : ; .W, s ,# e011"t &URS MIM barwa eat ►ad ted Ts (1) The Truste:m has received a certificate of the E,er:vicer statins that, after reasonable review as provided for in the Series A Origination Agreet^•ent, the gervieer believes that all Serir-s A Mortgage Loans backing the Series A Mortgage Certificate are Series A Mortgage Loans within the ar_�aning of the Origination Agreement and that the Series A Mortgage Certificate Conforms to all requirements of the G.`tAi.A Commitment and the GNMA Guaranty or the Fool Purchase Contract, and the guaranty of Fannie Mae, and the GNMA Guide and Fannie Mae Guides, as applicable. (2) The purchase price of each of the Mortgage Loans in the pool represented by a Series A GNMA Certificate was equal to the percentage of the unpaid principal amount thereof described in the table set forth under the heading "THE PROGRAM -- Interest Rates on the Series A Mortgage Loans" (plus, in each case, any accrued interest less unearned prepaid interest). The Trustee may rely for this purpose upon a certificate of the Servicer regarding the purchase prices of the Series A Mortgaqe Loans. (3) The principal component of the Series A Mortgage Certificate was purchased at the applicable Certificate Purchase Price based upon the aggregate unpaid principal balance of the Series A Mortgage boars in the Pool represented by such Series A Mortgage Certificate. The Trustee may rely for this purpose upon a certificate of the Servicer regarding the principal 1,alances of such Series A Mortgage Loans. (4) No Series A Mortgage Certificate will mature later than May 31, 2027 (June 30, 2027 with respect to Series A Mortgage Loans originating from Targeted Proceeds) (unless the Certificate Acquisition Period is extended as provided in the Indenture, in which case the Series A Mortgage Certificate hhall mature- on or before such date as shall have been zef lected in the verification report. submitted to MUocxiy's in connt-rt iorr with such extension) and each Series A GfA4A Certificate shall bear interest at a rate of 6.IS! per annum and «arh Serieu A Fannie Mae Security shall tw-nAr :merest at .a forte- of (-115% per annum, respectively (unless different r.3t5 ,re drtaru ned upon extension of the Certificate Acgijisition ieraod as provided in the Indenture), which in the 5 �s:>• of Series A COM Certificates is O. SO% below the Interest a.t �• b,)rne by the 6.6S% Series A Mortgage Loans in the Pool :'-E z---,,-nt4d be- such Series AGLOW certiflcste and Ia the cath s --i i ee A Iaaanie Mae Securit lee is 0 . SO% below the &Merest r.tM irur" by the 6.6SR Series A Mortgaqe Loses 1O the POOL a»seatod by sada Series ma N ies A roIe Use cvr I t y. %JUC6 est ss attr•..:rata will be utilised too par toss of the Servicer sed the ';WA OW P*Mt* IRM JUAVOMY ieMj plOVided. tet est, rea0eet t,-, ~tr A Mort f"p Lame boas �sg Iatereet at 7 l� pss Md 1. G" pO t eseirO ss =:rL= "now t be booth `1! ffta • • tsK..r+st SAR*e r tis Sorw a Iertlsegs Lew. • car Is 114rs-thrc;119h rate rn the Set ie,s A GWA Cel t.ificatens anti "errs A Fannie Mae Securities will I-,(- 0.9'73 aril 1.503, ra»pectivp below the int-etest rate borne by such Srties A Me)it_gage Chane. (5) Fither (i) the Trustee or a third party acti.r,,-1 solely on i>ehalf. of the Trustre has physical possession of the Series A Mortgage Certificate and such Series A Mortgage Certificate is registered in the name of the Trustee or its nominee, or (ii) the Series A GNMA Certificates are credited to the account of the Trustee, as trustee under the Indenture, at a clearing corporation, as defined under and pursuant to the Uniform Co:tmercial Code applicable to the clearing corporation, and the clearing corporation is registered as a clearing agency under the Securities Exchange Act of 1934, or (iii) a combination of (i) and (ii), or (iv) the Series A Fannie Mae Securities acquired by the Trustee on behalf of the Authority shall be held at all times by the Trustee in trust_ solely for the benefit of the Series A Bondholders until the Mandatory Tender Date and thereafter for the benefit of all Bondholders and shall be held in book -entry form through the book -entry system of the Federal Reserve System, pursuant to which the Fannie Mae Security shall have been registered on the books of the Federal Reserve Bank in the name of the Trustee (acting as a "depositary" within the meaning of 24 C.F.R. Section 81.44(b)), the Trustee shall have received confirmation: in writing that the depositary is holding such Series A Fannie Mae Security on behalf of, and has identified such Series A Fannie Mae Security on its records as belonging to, the Trustee an(i if tht_- Trustee does not receive payment, or advice from the depositary of payment, with respect to a Fannie Mae Security when clue by the close of business on thF• 25th day of any month (or the next Business: Day if the 25th i_3 not. a Business Day) , the Tru>tee shall be entitled to dt!marvi payment from Fannin Mae in connection with the guaranty c>t tim-ly paym-rats of principal and interest by Fannies MAe. (E) Any amount:;, other than Targeted Proceeds, remaining uttox;>�raAed on May 1S, 1997 :shall 1w_ applied on any date between May 1e,, 1-.97 and August 7, 1997 (car in each came such later dates based on an extension at the Origination Period and Certificate Acquisition Period) to the redemption of the Series A Bonus, as provided in the indenture. Any Targeted Procee_im remaining wended an Juno IS, 1997 shall be applied on any Aat.- t, -.en Juno 16, 1997 and AL*Wt 1. 1997 (syr in each Nae awh 1 -.=et dates based on an extension of the Origination Period sad ortttifieate Ao"Laition Period) to the redemption of the Series A booda, as pew► in the Indenture. The Origiaation Period. the Cbmi4csent l�Le tits tartifneat* Acwtaltion Period and the garegotno date of radeept &on sial+ t» a xt eede'd is oest.aia C t FCU rtaooas as descr abed La tea todeatwre. ire MIM A so" • •tan plowteame ' hasets. ertes M hO�e sacra Lo ass tees A Mute tea Arad no hupat 1. 1"'r tea seal Lauw- date boned am ens eet+oasiaw at tow of se"We Loa wee ad a d 9• Certificate Ar'quisit ion PeriL-d puIsgant_ to the ItIdent.rre shall transferred to th Principal Acc-cnsnt of the 8o€1d Fund anti ,,:�e i r_o redeem Series A Ber-,c9s on the= first mandatory re+dempt ion dar p . (F) The Trustee shall purchase, if directed by the Servicer, Series A Mortgage Certificates in a principal amount less than the standard minimum GNMA or Fannie Mae Pool size provided the lesser principal amount is allowed by the GNMA Guide or the Fannie Mae Guides, as applicable, or the Servicer has provided to the Trustee written evidence of approval by GNMA or Fannie Mae of such lesser principal amount prior to the applicable Certificate Purchase Date. Series B Proceeds Fund The Series B Proceeds Fund has been created pursuant to the Indenture. Upon issuance and delivery of the Series B Bonds, amounts deposited in the Series B Proceeds Fund will be invested in the Series B Investment Agreement until the applicable Mandatory Tender Date or Dates. Cost of Issuance Fund Moneys in the Cost of Issuance Fund shall be used to pay the costs of issuing t),e Bonds, all printing expenses in connection with the Indenture, the Series A Origination Agreement, the Series A Program Administration Agreement, the Series A Servicing Agreement and the Bonds, all legal fees and expenses of Bond Counsel, Authority',: counsel, fees and expenses of: counsel to the Counties or the applicable }lousing Finance Authorities of thea Counties participating in the program, fiscal fees and any accounting expenses incurred in connection with determining that the- Bonds are not arbitrage bonds, the initial fees and expenses of the Authority, the initi al Trustee Fees and expanses (which shall include the fees of Trustee -'s counsel), the initial Servicer's fees and expenses (which shall include the fees of the Servicer's counsel), the initial Rebat- Analyst F. -e, Fannie Mae's counsel's fees, rating :aq,+ racy fees, pa intinq expenses and the fees and expenses of the Underwriters with respect to the Bonds. The amounts distureed under the Indenture for paying the costs of i r= s u i nq the bards sba l l not exceed the amounts deposited in the U—t (A 181nSoe P1u4 pursuant to the Indenture and the Origination Agreement. The Oast of Issuance Fund shall be closed following the Md of tla Acquisition Period and say balance shall be rens' the Authavit y . y r e"I t e rn elvenoo grad P=, ve in the M'IIPWM k DWORWO Sued shell be used safely to psi r.,e hes. sear udind the erste AAalyst tie. the Anthstity ►` r. _ + + a smVpeeses d ars UWUQ comms l l e t 000 1 amd. to tax Meet 10, tea osy trf 0108" Of Mf[ 1 t i cat tame sed ardits p�� to 1�-rete sp . i%0 TOWWWO t• art bw asad to •►taw some :ems ' , A r 40 eqpsmse hwd to swM sweam" ser at awe t bwr r • provided in the Indenture. In the event the Trustee and the Authority have rer-eived an opinion of Pond Counsel that calculation of the Rchate Amount. is no longer required, as provided in the Indenture, the ams)unt: of the Rehate Analyst's Fee transferred to the Program FXpense Fund may be used to pay the costs of verifications and audits pursuant to the Indenture. Flow of. Funds The Authority will cause all Pledged Revenues derived from Series A GNMA Certificates, includingpayments from GN— A pursuant to the GNMA Guaranty to be deposited with the Trustee on or before the third Business Day following the twentieth day of each month, and will cause all Pledged Revenues derived from Series A Fannie Mae Securities, including payments from Fannie Mae pursuant to its guarantee, to be deposited with the Trustee on or before the twenty-fifth day of each month. The Trustee shall credit all such money to the General Fund. The Authority shall cause the Servicer to designate to the Trustee whether such moneys are derived from regularly scheduled principal payments, Principal Prepayments or other moneys with respect to the Series A GNMA Certificates and Fannie Mae Securities. The Trustee shall also credit to the. Reserve Account the amounts transferred by the Servicer to the Trustee on each Certificate Purchase Date, as described above in Paragraph (C) under "THE INDENTURE -- Series A Acquisition Fund." Subject to the pro -.inions of the Investment Agreements, there shall also be deposited in the General Fund any income or interest earned by, or increment to, any Fund or Account, other than the Rebate Fund, the Cost of issuance Fund and the Program Expense Fund (which earnings shall remain on deposit in such accounts, respectively) established pursuant to the Indenture due to the investment thereof; provided, however, that_ on the date Bonds are subject to special mandatory rt-drmption, the Trustee shall first apply earnings on moneys held under tht- Investment Agreements to pay accrued interest on Hortds that are subject to such special mandatory redempt is n. Pursuant to th,- ind-ntuit the Trustee will create separate .ut=.a, cciunts with rerI--(.t. t;, t_h- ,eries A Bonds in the General Fund, t_hw stc,nd Fund and t t,=- _ c_, ,:,ants therein (including the Reserve Y,,-, <:iu,t ) , the Progr..m l,:Y.I - t; Fund and the Rebate Find. M=aneys in the ;«:;=w t d I k and shall be used for the follows aq ;...•yn,, ,to «+ the following dates and is the following order of ,,:city (taoneys rc;=uJt in:) ttom int -text earned as anomts in the tso ! 1 ... 1 , tither gemageys in the t't,r nal /-d atlajec. t t I. , ls; t csV�c,t a f v.i posit to the Rebate, :,,•J t„us401mmt to the In'l.i (it ON the /ue x 1., _ * ISas lOt eteat tveyteairt Deva. tAsre eb444 be ttsart�„ iby 60[97( to ! Ito Lsta~ &DOWAVA is t be bond Vand M awersa statt totes+e t . U] pay interest cc�nina dire on the P,,wis on sur -h interest Payment Pate to th— extent: not available in they Interest. A - count; (ii) On the Rusiness Pay 35 days preceding a principal payment date or a sinking fund redemption date, there shall be transferred (by ledger entry) to the Principal Account in the Bond Fund any amount- necessary to pay the Bond principal maturing or to be redeemed on such date to the extent not available from amounts in the Principal Account; (iii) On the Business Day 35 days prior to each October 1, to the extent required by the Indenture, the Rebate Analyst: shall be required to make a preliminary calculation of the Rebate Amount and there shall be transferred (by ledger entry) to the Rebate Fund such amount based on estimated investment earnings through such October 1. Within 30 days after each October 1, beginning Cctober 1, 1996, the Rebate Analyst shall be required to make a final calculation of the Rebate Amount as described in the Indenture. In the event the final calculation of the Rebate Amount exceeds the amount determined in the preliminary calculation, the Trustee shall transfer the amount of such deficiency within 45 days after such October 1; (iv) Except as provided in the Indenture, on the Business Day 35 days prior to each Interest Payment Date commencing October 1, 1996, the Trustee shall transfer (by ledger entry) to the Program Expense Fund the amount necessary to pay the Program Expenses on such Interest Payment Date; and (v) (a) Thirty-five days prior to each April I. and October 1, commencing October 1, 1997 (unless such date is extended by the Authority) , there shall be transferred (by ledger entry) to the Series A srubaccount in the Priru..-ipal Account all monesysa remaining in the Series A subaccount in the General Fund riot: required for payment of any of the foregoing with respect to the Series A Bonds, which transferred amounts shall be- deeme-d "Series A Excess Revenue .s. " (b) After tht? Mandatory Tender *lite, thirty-five ,lays prior ter each interest. Payaont Vat e, there stall be tranaterred (by ledger entry) to the Series 0 subaccount in the Principal Account all moneys not required tar payment of any of the for -lining with respect to the series A Sands air 'aerie@ S Sands, which transferred amounts shall be deemed "Seri!* S aevsM R WM.' provided that there remains a 1,41aabe of $10.000. SAt wit st ..:, i,nq tJw tors":. i;,a, c : ,,R the Sus &ne s $Sat► thirty - give days betot. asy Sprit t 04 c�--t'e.es t tsars ars ►asuf f tetast meai a as deposit is tee tlesesat rush to make the traa@tass t-s,ju r t w i tri. am" tramstei+s @salt be so" am too eactiass date .. t , at M w 1A.C6 LOWN atm ruff &C&4WR MOS14M OR deposit for Ar imcuwtiop ftL ripal Pe pso comas as d"Oest to 00 n PI incipaI Account, but in no ev+,nt Iatnr t han t hA Bus Ins" Day prior to such April 1 or octol�er 1. In addition to the fotenoinq, the Trustee may, at the ditPction of the Authority, wit?xfraw fron thre rrpneral Pund mon" Sufficient to pay the purchase price of Bonds being purchased in lieu of sinking fund redemption pursuant. to the Indenture, to be applied to payment: of such purchase price and credited against such sinking fund payments. Solely for the purpose of determining the principal amount of Bonds that will be subject to mandatory redemption from Principal Prepayments and Excess Revenues pursuant to the Indenture, the Trustee shall, not later than thy_ 35th day prior to each Interest Payment Date, calculate the amount which will he available or. the Business Day preceding the Interest Payment Date. The amount. available will be calculated by taking the balance of the General Fund on the date of calculation and adding to such balance the accrued earnings from the General Investment Agreement as provided to the Trustee by the General Investment Agreement Provider for the month ending prior to the date of calculation and subtracting from such balance those amounts required for transfer by subparagraphs (i)-(iv) above. The Trustee shall use such projected amount for the basis of determining the principal amount of Bonds to call for mandatory redemption on such next succeeding Interest Payment Date. Bond Fund Moneys in the—.1baccounts of the Accounts in the Bond Fund shall be used on each Interest Payment Date solely for the payment of regularly scheduled payments of the principal of (including Sinking Fund redemptions pursuant. to the indenture) .and interest on the Bonds. The Authority has covenanted and agreed that so long as :any of the Bands are Outstanding, it will deposit, or- cause to be paid to the Trustee for deposit in the Bond Fund for its account, sufficient sums from the Series A Pledged Revenues or Series B 111.-dged ]revenues, as applicable, promptly to meet and pay the principal of and interest on. th- Aunds as the sane shall become due and payable. Nothing in th • indenture shall be construed as requiring the Authority to u:..• for such pose any funds or r+evemms from any source of ).--, , Pian the Pl= Revenues. leeerve Account Tbr,, ,. shall be d-po s i t r3 in the Series A subaccount of the issetw Account A ;-It 11,n L,t the initial payment receaw" an the Mmes S PscYc.. d9 Fur.ci Invoa+t meat Agtrsaestt equal to StIS.000. TAe �atlss • &—ds ate oft esaurod by the Settee A subsecomt Of the reeteta ACS • a ,, i . t i ,- r to t1M MasdaiTardsi Date.Ngn d�asit it, , ,,: A OWNW aouwt of tbs Wsiw A=NMK eball be wed t F, t,M ;- I st ly eeiedeled prtaaWst of eed laterew an To the Series A bonds t -n any Intel•'st PAY—11t, IlatA on which there are insufficient a»tes on firposit in the :;Prier A subaccount of the Principal Account, interest Account and General Fund for such purpose. Any ampunts on deposit in the Series A subaccount of the Reserve Account in excess of ISO% of the annual debt: service on the Series A bonds :shall be deposited on a semi-annual basis into the General Fund. In addition, moneys on deposit in the Series A subaccount of the Reserve Account: shall be used to pay accrued interest on the Series A Mortgage Certificates on each Certificate Purchase Date. The Trustee shall replenish amounts withdrawn from: the Series A subaccount of the Reserve Account to pay accrued interest on the Series A Mortgage Certificates on the date of receipt of the first payment on r:uch Series A Mortgage Certificate following the Certificate Purchase Date. Following the end of the Certificate Acquisition Period or in connection with a remarketing or redemption of the Series B Bonds on or prior to a Mandatory Tender Date, the Authority may withdraw amounts on deposit in the Series A subaccount of the Reserve Account provided the Authority provides the Rating Agency with a Cash Flow Certificate and receives confirmation that as a result of such withdrawal, the rating on the Series A Bonds will riot be reduced. Rebate Fund Moneys deposited and held in, or Lo be deposited in, the Rebate Fund shall not be subject to the pledge of the Indenture and shall be used by the Trustee to effectuate rebates to comply with the Code, all as further provided in the Indenture. Investment earnings on any moneys in the Rc-bate Fund shall be retained therein. The Trustee shall make disbursemc-tits from the Rebate Fund and otherwise comply with the Arbitrage Rebate Letter of Instructions (the "Lett=er of Instructions") with respect thereto ( i�°Iivered upon issuance of the: Bond.,;. Thr Trustee may transfer I rom the R -abate Fund to the General Furca amounts therein which oxc"- d t hr= then -current Rebate Amount, all in -accordance with the heti«r -)f Irilatiuctions. Amounts Remaining in Faads and A+aoouato Afte-t full payment (or provision for payment) of the Bonds and t h« Y e i- a t - AwKAmt and discharge of the Indenture, payment of the Tru:t.-r F --s rend the fees of counsel to the Trustee) and the hargps- expeamme and attorneys fess of the Authority, the Servicer and any part" Agent. and all other amounts required to be paid uti"ir� the and under the SsrvieiOg Agremumat . the Pragrr AAm, r, i t: t r at too he ii at, and oragtaat ion Agrvement. all amounts t tle i dA f t yr swaarq tntto say f Irnd or seXXNMt sial I be paid to t he r to Ort twd tar MW Lsmrtal prtrposs permitted ms &" tar R•t . to LJ Investment of Funds and Accounts Pill 7-11,111t to the Indenture, tht, Triisf.-r rshaII invest_ arn•i reinvest any of the moneys held by it in any f.unri or acc•,Illsnt, rather than the Cost of Issuance Fund, in the lnve4trent Agreements, as Applicable. Series R Pond Proceeds shall initially be invested in the Series A Proceeds Fund Investment Agreement, and thereafter as provided in the Series R Supplemental Indenture. Moneys held for the credit of funds and aCCOUTIts under the Indenture (except the Cost of Issuance Fund) shall, as nearly as may be practicable, be invested pursuant to the terms and conditions of the applicable Investment Agreement for the life of the applicable Investment Agreement which shall permit withdrawals not later than the respective dates when moneys held for the credit of such funds or accounts will be needed for the purposes of the Indenture. The Trustee shall invest amounts in the Cost of. Issuance Fund, and, if the Trustee is unable to invest any other moneys held pursuant to the Indenture in either of the Investment Agreements, the Trustee shall invest such amounts, as directed in writing by the Authority, in Investment Securities which mature on the earlier of 30 clays or such time as moneys are expected to be needed under the Indenture. All investments of funds and accounts under the Indenture must be invested in Investment Securities, as defined in the Indenture. Subject to the requirements of. the Indenture with respect to the Rebate Fund, all such investments shall at all times be attributable to the fund or account whence the moneys used to acquire such investments shall have come, and all. income and profits on such investments shall be first used to offset any investment losses (including losses re tilting from the sale of investments) in such fund oi`account., and then shall be credited to the General Fund created under the Indenture, provid<_-d that earnings on irn—stments of moneys in th,! Coat of Is:su.:iuce Fund, the Rebate Fund and the Ptogiam Expense Fund, :shall be retained in such respectiv,s fund and shall be appl i,_od in accord:sn -.�• with the I ndent a r,. . Discharge of Indenture I l s 1;.- Aw hority shall l -ay or cause to be paid, or there stealI be oth-iwise paid or provision for payoent lade. to or for the owns" sof the Series A Bonds or the Series H Bonds the respective prine pal of and interest des or to becase des thereon at the tiers and in the eamer stipulated therein, And shall pay or cause to be paid to the Trustee a1.1 sues of IMMOy due or to becoos *as asnoz.Lag to the provisions of the ladsnture 1including the Trust" Al M a and a1{psne in e , — rt toe tberg"ta) . then the lndsnturs And lrights tlr�r grant" shall ca4ss, tsr.inate And be Void. eew�oa the Trust** shall cancel acid dischar" the lten of the adsazws, and enecrte aed de 1 i ver to the Art nos t t y a mb 'eaestrseaLa is tntttarg Pewid" by the Artasrity datemund by tis , .atberity to be r wLette to emnsl sed dtsabot" las alae &- m i . cad 81811'eme. ossa- Aad del twr to tae Arthec ity sear sad 411 tis 4t�te. rt qw . t i �. ead tat ef"M t arca ta. or sthemw r odors to ae the lien of the Indenture, except.-l:.ncy or securities In -lid !;y t-_h- Tiustee for the pay-ent of the principal of anti interest nn th- Ponds and the Rt I�at e Amount. Any Pend shall I-+- deea^ed to I:e paid within the meaning of the Indenture when payment of the principal of such Bond, premium, if any, plus interest thereon to the due date thereof fwhethpr such due date be by reason of maturity or upon redemption as provided in the Indenture, or otherwise), either (a) shall have been made or caused to have been made in accordance with the terms thereof, or (b) shall have been provided by irrevocably depositing with the Trustee, in trust and irrevocably setting aside exclusively for such payment (1) moneys which, in the opinion of Trustee's counsel, would not constitute a voidable preference under federal bankruptcy law, in an amount sufficient (as determined by an independent certified public accounting firm) to make such payment or (2) non - pass through fixed rate, non -callable Governmental obligations, maturing as to principal and interest in such amount and at such times as will insure the availability of sufficient moneys to make such payment, and all necessary and proper fees, compensation and expenses of the Trustee or the Authority pertaining to the Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of the Trustee. At such times as a Bond shall be deemed to be paid under the Indenture, as aforesaid, it shall no longer be secured by or entitled to the benefits of the Indenture, except for the purposes of any such payment-- from such moneys or Governmental Obligations. Notwithr;Iandit;3 .any other provision of the Indenture, the entire portfolio of Mortgage Certificates for the Bonds may be sold by the Trustee, at the direction of the Authority at any time in its discretion if the proceeds of such sale, together with other funds available und-r the Indenture, are sufficient to pay or cause to be paid at red«!mptioti the principal of, premium, it any, and unpaid accrued interest to tho it.-demption date on all th+-- Bonds, any related brokerage charges and any unp_iid Trustee Fees, Rebate Analyst's Fees, and Rebate Amount; provided, however, if Hands are to be redeemed pric.,r to their scheduled maturities, the provisions regarding uptic.naI zedemption of Bonds shall apply- See *THE BONDS .. Redeepticn Ili�,vl :i, tin - (p. : al RadMt ion* her •i . Defaults and Remedies Prior to t t.r. Mandatary lender Data. an Barant of Default (as ,i+scribed below) with respect to the Series A Hands will not cause ..n siren at with respect to the series b sands and an event -f prtarrlt With rg"ct to the Series b bonds will not constitute .n 0 an of Del Ault with respect to the Series A bands- Atter the Msadst+esy Tan d*$ Date, however, art event or ceramic with respect to OW •ensu of bonds owat anther tinder the fedeetmre W►!l ansae ittrte ssi OMset Of D.irult With nealp+c't to all seri« or seeds OtICetassiANS ter the I newest ties - Pt t or to tow Mendet a ry V006i Oft*. taw term e3 'Bonds* as used below, :-hall k•,Fr}= el to refer on 1y to tha Set ies Of Bo>ads with reSpeCt to w)1ic 1 an F,vent of I -fault has occi.rt-!1. Any of the follrxirlca event!, (2011Stit_uYes an "Event of Default.' under the Indenture: (a) Default by the Authority in the due and punctual payment of any interest on any Fond; (b) Default by the Authority in the due and punctual payment of the principal of any Bond, whether at the staged m:at_urity thereof or when the same is scheduled to be called for redemption; or (c) Default in the performance or observance of any other of the covenants, agreements or conditions on the part of the Authority contained in the Indenture or in the Fonds and failure to remedy the same after notice thereof. pursuant to the Indenture. Upon the occurrence of any Event of Default, the Trustee may pursue any available remedy at law or in equity to enforce the payment of the principal of and interest on the Bonds then Outstanding, including enforcement of any rights under the Administration and Servicing Agreements or the Origination Agreement; provided that the Trustee may not accelerate payment of principal of and interest on the Bond.-, upon a default described in (c) above, except upon t11e approval of the holders of 100V in principal amount of Bc tnds then out:.tanding. If an Event of D>,fault shall have occurred, the Trustee may, and if requested so to do by the owners of not less than 25% in aq-gregate principal .amount of all Bonds then out -standing, and indemni f iod as provid+ d in t1:F Indenture, the Trustee shall be obligated to exercise one or more of the rights and powers confprr�d by t)1e Indenture, an the Tru:}tee, being advised by counsel, >h:all d gym ^last expedient in the interests of the owners of the Bones ext ---pt as limited in the foregoing paragraph. so remedy 1.y the ter of the indenture conferred upon o: reserved to the Trustee or the owner* of the Bonds is intended to be exc 1 us i ve of any other remedy. but each and every such remedy shall be cumulative and shall be in addition to any other remedy oq�fven to the Trustee or to the owners of the bonds as now or heroatter ouistinq at lav or to putty or by statute. so belay or omission to Mcareise any rtght of power amruaaq upas air detault or aveat of Default *hall impair any Sift right or power or shall be oon*trwd to be a waiver of my such default or lumimmt of D*tmwmlt a sa4uieernu M thereof i aid SWW V 8W* rtgbt sed pores ms1► be ams*rem.sed trove t we tet t tame ae Otto* as wry be deemed at No waiver of any or Ev-nt of Lxnfault under the Indentuie, whether by th,:i Trustee or- 1)y the owners of the Bonds, shall extend to 411 �h:ill affect any subseo-pxent default or event of Default. or =h;a11 i?-p.iir :iny rightq or re-r!dies consequent thereon. Waivers of Events of Default The Trustee may waiver any Event of Default under the Indenture and its consequences and shall do so upon the written request of the owners of (1) more than 66-2/3% in aggregate principal amount- of mountof the Bonds then Outstanding in respect of which default in the payment of principal or interest, or both, exists, or (2) more than 50% in aggregate principal amount of all Bond.; then Outstanding in the case of any other default; provided, however, that there shall not be waived any default: in the payment of the principal of any Outstanding Bonds at the date of maturity specified therein or any default in the payment when due of the interest- on any such Bonds unless, prior to such waiver or rescission, all arrears of interest or all arrears of pay.ents of principal when due, with interest on overdue principal at the rate borne by the Bonds, and all expenses of the Trustee in connection with such default, shall have been paid or provided for. In case of any such waiver or rescission, or in case any proceedinc-is taken by the Trustee on account of any such default shall have t_-3en discontinued or abandoned or determined adversely, then and ir, every such case the Authority, the Trustee, and the Bondholders -.hall be restor,2d to their former- positions and rights under the Indenture, respectively, but no such waiver or rescission shall ->xt-_nd to any subsequent or other default, or impair- any right con:-,:�quo�nt. thereon. Rights and Remedies of Owners of the Bonds No own•.r of. any Bond -Shall have any zight tv institute any :;uit, action or proceeding at law or in equity for the enforcement of the Indenture of for the execution of any trust of the Indenture or for- r.he appointment of a receiver or any ut hr•r remedy under the indent-ur^, unless (1) a default has occurred of which the Trustee has b"n notified as provided in the Inudenture or of which it is deemed tc have notice. (2) such default shall have become an Event t'f Default and the oxnots of not less than 2S1 in aggregate principal am-->unt of Bonds t 1..-n Outstanding shall have furnished written notice to the Trust and &hull have offered the Trustee r:.xbie opportunity *W:s-! proceed to exercise the pavers in the Indenture t,, institute such action, suit or F:7 : , „oq is theit — frame us rinse. (l) the Trusts* shall have as psarided to the tudiatuse, and (+) the Trustee t Oaf r : T fall or .,,e t- --new"m the pavers granted in t,. :.tutc-, .r to 1Rst - su, action. malt or proceeding In is :W:, name. as Terme*, rat a P*9 &Red of " dsys atter reesipt by A K i -,rift r rx-ir ct and 01 tet I ; r. 4e41011tyd end DOM eOt ►f lCet LOS. row", , and 'f &406M sectared to Bang► case et ear i • ,F, Ott t!w ; , -.' O,s t o b. •, ; , . AWpg*CMdeot t o t r *ret x tae the Peelers MW t rust 04 tits tnsent s". atd to may K"t lam W as cause of action for the enf(71rc-e*)erit ,=f the indent.urP, or fr>r t.ho appnintment of a receiver or fee any other remedy under the Indenture; it being understood and intended that, no one or r -ire owners of the Bonds shall have any right. in any manner what_s-.^.Aver to affect., disturb Or prejudice the lien of the Indenture by its, his or her action or to enforce any right thereunder except in t:he manner provided in the Indenture, and that all proceedings at law or in equity shall be instituted, had and maintained in the manner therein provided and for the equal and ratable benefit of the owners of all Bonds then outstanding. However, nothing contained in the Indenture shall affect or impair the right of any Bondholder to enforce the payment of the principal of and interest on any Bond at and after the maturity thereof, or the obligation of the Authority to pay the principal of and interest on each of the Bonds issued under the Indenture to the respective owners thereof at the time, place, from the source and in the manner in the Bonds expressed. Supplemental Indentures The Authority and the Trustee may, without the consent of, or notice to any of the Bondholders, enter into an indenture or indentures supplemental to the Indenture as shall riot be inconsistent with the terms and provisions thereof for any one or more of the following purposes: (a) To cure any ambiguity or formal defect or omission in the Indenture; (b) To grant to or confer upon the Trustee for the benefit of the Bondholders any additional benefits, rights, remedies, powers or authorities that may lawfully be granted to or conferred upon the Bondholders or the Trustee including those that may be granted to or conferred upon the Bondholders or the Trustee as a result of changes to Section 143 ar Section 148 of the Code and regulations pursuant therrvto (including but not limited to relate roquirements), cn to make any change which, in the judgment of the Trustee, is not to, the prejudice of the Bondholders. The Trustee may rely conulu:;ivM-1y on 4-ini,,na A counsel as to such m,A i f i it t i (ins; ( ) To sut; j t to the Indenture adds t ions l rev*nuee, ies or C'01 1.41 .•a al ; (.!) To WKAi f s , astend or supPlwrnt the Indenture Or surge in y,.t:t .,2 . sLappleemnisI thereto in suab gamer ae to persit the Co t i f i r•at es to be beLd to boat-SM97 tom 7- y t y , sat nd At Iud"K urs esr :t a eu � 1MIIRr,t.I t ta*ty" is soot ee�et so to P"Utt tb st s,,a, t twtr<.! ue4et t tee TirR 911dee*or *At of Mta M �V w&.* t *4 art *! vet a Me: e*t t er to et teeot M to VOAtt taw t . uti c • t t tee rete ted erto earise ttte MONK K tss 14 e « N any of the states of the United States of X -erica, and, if Choy st determine, to add to the Indenture or any indenture supple—nt.al thereto such other tetms3, conditions and provisions as MAY ho-- permitted Ppermitted by the Trust Indentute Act of 1939 or similar federal st.atut.e; (f) To evidence the appointment of a separate trustee or co - trustee or the succession of a new trustee or Paying Agent under the Indenture; (g) To make any modification required in order to maintain the rating on the Bonds; (h) To preserve the exclusion from gross income for federal income tax purposes of interest on the Bonds; (i) To add to the covenants and agreements of the Authority in the Indenture other covenants and agreements thereafter to be observed by the Authority, or to surrender any right or power therein reserved to or conferred upon the Authority; (j) To permit the issuance of bonds secured by a pledge of all or a portion of the Pledged Revenues or trust estate which is junior and subordinate to the pledge granted by the Indenture in favor of the holder of the Bonds, provided the issuance of such bonds would not adversely affect the ratings on the Bonds issued under the Indenture; (k) To set forth what information relating to the Bonds and the Program the TYus;ter! is authorized to die. zeminate to the Bondholders and thc� inve tmc>nt community; (1) To ul-'(, ._,r,y )i[;r,k-,_int,ry .3y:;tem for rt-gistiation of they Bond.';; (tn) To modify, ar. s nd or sau1+lt!ment the Indenture or any indenture tiupplr_mwntal t):=.azeto in such manner as to permit the addition of. qua l i n e d loans as Mortgage Loans, upon c(,,3na*nt of the Aut hoi It -.y, the Trustee, the Servicer and upon ettecution cit a M,,i tgaq� origination Agreement or Agreements providing for such loans; (,t (10 ro permit the remaricetiM of tM series B Bonds tendered on the Mandatory T•n4er Bate upon terms to be established by eaeaatsI indent .s r' . A1tboeugh the provisions of the Indenture peraeit fibs Ouscut i' .."d delivery of such supplemental indenture withotrt the coeser.t i the Bandholders. no suppisssetal indenture Shill be es>toat +":i :. a« t versd unless and un t i i the Tnrtes has gemimed inion:, - toftsn.at inn from the fatifte Ike 11 thin tie EOtiip ao the t.- y A 6cmdo and tris iertss B Oeds will set be tritbsetnlw sr "t.,, ss Exclusive of supple^�ntal in:deRnturea, covnr¢ri a}> :v an-iX:Iir e -:t_ to the terms and piovision�s contained in the in 3._ni.i.r• and n—. otherwise, the owneis of not_ less than two-thirds in ac;firer;at:e principal amount of all Ponds then outstandinv3 shall have the right, 11-M time to time, anything contained in th^ Indenture to the contrary notwithstanding, to consent to and approve the execution by the Authority and the Trustee, of such other indenture or indentures supplemental thereto as shall be deemed necessary and desirable by the Authority for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in the Indenture or in any supplemental indenture; provided, however, that nothing in the Indenture shall permit, or be construed as permitting, without the consent of the owners of all Outstanding Bonds, (a) an extension of the maturity or mandatory sinking fund redemption date of the principal amount of or th�� interest on any Bored issued under the Indenture, or (b) a reduction in the principal amount of any Bond or the rate of interest, or sinking fund redemption requirements, thereon, or (c) a privilege or priority of any Bond or Bonds over any other Bond or Bonds (cher than those privileges or priorities granted in the Indenture;, or (d) a reduction in t)le aggregate print pal amount of the Bonds required for consent to such supplemental indenture, or (e) the creation of any lien other than a lien ratably securing all of the Bonds at any time Outstanding under the Indenture, or (f! any modification of the trusts, powers, rights, obligations, duties, remedies, immunities and privileges of the Trustee. DISCLOSURE PURSUANT TO SECTION 517.051, FLORIDA STATUTE$ Purr>uant to section 537.053, Florida Statutes, aS amended by Chapter R7 -31C,, 1,aws of Florida, no person may directly or indirectly (Al er of sell securities of the Authority except by an offe-ring circular containing full and fair disclosure of all defaults as to principal or interest on its obligations since December 31, 1575, an provided by rule of the Florida Department of banking and Finance (tile •Department"). Pursuant to Rule 19 400.003, Florida Administrative Cods, the Department has required the discloenre of any anon and types of detaults, any legal procr:edinge reou ting from such defaults. Whether a trustee or receiver has been appointed over the asset• the Authotlty. and certain additional finaiv7ial inn-l„•t i+•ts, ,sea •ham Arity believes in good fait t. ; OW 491 4 1 -.t meterial by al• M. i by the ; ; i : Y jbe ., . e -j" aJ the if.; t.IM A,* l,: 1 ity, :ra glewki fatme* on toe otoetr boeds at tt., d r.. t is 920"gil . -real by a ev -1,le ♦mea, hila &W s . t, fled, ' w! .1. tow po as ►.all elvbM ft r the Auth--i ity. The Authority L-4--] ieva� , in good fait h, I sswwo . INN could cause I illation con, -erninct any previous Wulti- f, ally bot>>d issue of inccen, for ted drity would not be considered material by an investor in federal in= All tx.,nds issued M' the Authority are 71^cial, limited issisance. The VA of the kithority secured, guaranteed anti payable molel.y for the inrpr W secui It y pledged therefor tilt dini each t rtls`t indenture Qross inc;:ome I 011 to each such issue. All of such pledged assets for any actions that 1 issue are held by the named trustees separate and furcm any assets of the Authority and of any other security Unci»r t.h -0 any other obligations, bonds or securities of the env ironr,->nt._Il The Bonds described herein are secured by the Pledged taxable years and those Fledged Revenues do not secure, guarantee or corporations ci 1 source of payment for any other obligations, bonds or on excess net 9i of the Authority. Under the for federal in TAX EXEMPTION consequences he opinion of Miller, Canfield, Paddock and Stone & Lott, taxpayers, in insurance cam dl Counsel, under existing law, the interest on the Bonds Retirement bon >t'l from gross income for federal income tax purposes under indebtedness 4:3(a) of the Code and is an item of tax preference under applicability 0' of the Code and therefore may be subject to the depend upon t vyt minimum tax imposed on individuals and corporations owner of the B Code, and the Brands and the interest thereon are exempt such consquer Laxation under the law;; of the State of Florida except 06ed by Chapter 220, Florida Statutes, as amended, on From Gime income 0I" profits on debt obligations owned by Which, if 0", 7 r'rs; provided, however, that no Opinion is expressed as t0 t'*, t�`r l��':.t to N t:igtus of the Serie-,3 B Bonds subsequent to the Mandatory t. he- :+ )ni.r. it Al.Bond Counsel wil..l expregs no opinion afar to any otYrer prof��,.: it relight ptences regaidinq the iic nds. obligations (s opinion on tax rlaatt a^r s will be based on and will assume Amortizable B- 41cy of certain represent,,t ions gad certifications and a with certain COVeriants of the Authority to be contained In the c gtscript of proceedings and which are intended to evidence exceeds its a e t he f ortgoitp, i nc l ud i rag that the Bolls are and will stated rump ligations the ittteiest <_.n which is suciuded from 92 boiodpr60.10m. r federal income tax purposes. Bond nouns 1 will will t: retinas ate 1 y v.-I i t y the arrur acy of the certifications » td premium a ►1„ lar "'.64e by t tee Authority. acc<,r7arce wit 31do Iribwe a number of qua l i f scat ions and eottdit ions ItOVOW an stems sad 10041 gorawaK obi igat tom swore as : to be a" to "mate snoladed trxft gross moat fair taoase tats ptspoeer. ear of abicb. including the ere of Dere is Ili UW reside. the ant tato of tits rsstdom es sad the as lar eT a and ere •l ietw 1 tt it of the Oossvrsrs sswetrt w isV see it1Sessuerr Bands as Well ae pate�risiaae for potgWW d err tie govetwo ". t'�svMare tutwo air ears "N"d ere a ieaersa R aftw aommuoe of tar abiapttame is ord" tar tow L W be mme to aaaat aswe ce be ss ow i +dad love tar date of ss issuance. Noncoir•plianc-e with the€ze require~cnt. by the A'it.hc;r it.y could cause the interest cin the Ponds to r- inc-luded in gross income for federal income t -Ax purpnssen and to be subject t.o regular federal income taxation retroactively to the date of the ir- ir+:nuance. The Authority will covenant to take all actions required for the interest= on the 8:1nds to 1e and to remain excluded from gross income for federal income tax purposes, and not to take any actions that would adversely affect the exclusion. Under the Code, interest on the Bonds may be subject to an environmental tax imposed on certain corporations for certain taxable years, a branch profits tax imposed on certain foreign corporations doing business in the United States, and a tax imposed on excess net passive income of certain S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes can have certain adverse income tax consequences on iters of income or deductions for certain taxpayers, including among them financial institutions, certain insurance companies, recipients of Social Security or Railroad Retirement benefits, and those that are deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations. The applicability and extent of these or other tax consequences will depend upon the particular tax status or other tax items of the owner of the Bonds. Pond Counsel will express no opinion regarding such consequences. From time to time, there are legislative proposals in Congress which, if enacted, could alter or amend the federal tax matters referred to herein or could adversely affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to obligations (such as the Bands) issued prior to enactment. Amortizable Bond Premium in the case of a Bernd that if.; purchased at a pr ic•:• ,hat exceeds its stated redemption price at maturity (generally its stated redemption prier), that excess will represent amortizable bond premium. For a hulder of a Bond, the holder's ad)usted basis will be reduced each taxable year by the amount of the amortizable bond premium attributable to such Bond during such taxable year, in accordance with 4ec. t :.ns t V I , o i 1016(a) M of the Code. 8ANNOt c,}: Li TiGA" 1-ai 'lhrt is tato act Lon. suit, proceeding. inqu" or Mvest14stMe ,ity batorie or by &oy court. pubiis oaasd or body wt., I I w,,, F Io Iia beem etsootrated an too Authority or. t,, t t4* bwowLefte of the Atrtbsity, tftcowmieds�a last ar sttactts" It,' xstt.lrit or, tAm its kmmase bask tlrrstet. Marais( 4W,.:.1.; i., is. wLatm. r ltme as tL"&" Mould -it $M1y actors toe sA • issued by the Authority. 71.^ kzt.hority 1,�1ievaa, in good faith, the inozat ion concerning any previous multi - fa-,ily txsrid issue of the Authority would not ire considered raterial by an investor in the Bonds. All bonder issued by the Authority are special, limited obligations of the Authority secured, guaranteed an: -1 payable solely out of the security pledged thezefor under each trust indenture applicable to each such issue. All of such pledged assets for any such bond issue are held by the named trustees separate and distinct: from any assets of the Authority and of any other security pledged to any other obligations, bonds or securities of the Authority. The Bonds described herein are secured by the Pledged Revenues, and those Pledged Revenues do not secure, guarantee or, provide a source of payment for any other obligations, bonds or securities of the Authority. TAX EXEMPTION In the opinion of Miller, Canfield, Paddock and Stone & Lott, P.A., Bond Counsel, under existing law, the interest on the Bonrls is excluded from gross income for federal income tax purposes under Section 103(a) of the Code and is an item of tax preference tinder Section 57 of the Code and therefore may be subject to the alternative minimum tax imposed on individuals and corporations under the Code, and the Bonds and the interest thereon are exempt from all taxation under the laws of the State of Florida except taxes impose -3 by Chapter 220, Florida Statutes, as amended, on interest, income or profits on debt obligations owned by corporations; provided, however, that no opinion is expressed as to the tax status of the Series B Bonds subsequent to the Mandatory Tender Date. Bond Counsel will express no opinion as to any nthoj tax consegtze-nc_es regarding the Bonds. The opinion on tax matters will be based on and will .assume the accuracy of certain representations and certifications and -ompliance with certain Comumts of the Authority to be contained in the transcript of proceedings and which are intended to evidence and assure the foregoing, including that the Bonds are and will remain obligations the into -rest an which is -x --i i; i., 1 f t gross income for federal income tax purposes. 8oz: s -: e I not i ndependtnt l y verify the accuracy of the e : t i: : <: a € : rasa and representations made by the Authority. Tree code prescribes a nu ber of qua i i f seat iom and n!of 'it Lens tug the interest o• state and local government obligations such as the bawds to be and to r"MOLD axcludad t t :va gseas inecom for ffdsral imCwft tax purposes, ser of which. inclu&aO the use or pe+aosa4s of the bunds, the nature of the t es tdsaOas &ad the atosrt 8o@" and the e 3 i g i b i l i t y of the borrows* asset tap the f manned by t he 6cm.4s as we l 1 as Prov t a 1,vms for pat oeet 4 *1 ps1 00te to the t •diens 3 yCws t t.wsH t. t Vqu i n e t Yt 4s a Of rve<t 1010.004 00WItaaae after i•Wa<u• �1 the 6 ,f Ass :..s tho hat4W% t it 0 be *ad ! U r,e M i nw t o tie er: e a - —60.t f n U0 t 6* sal a ,, t 0. transactions contemplated by the Official Stater-rnt, the exciusrir_n of interest on the Bonds from the gross into -,e_ of the owners of thA Bonds for federal income tax purposes or the validity or enforceability of the Bonds, the Indenture, the Origination Agreement, the Administration and Servicing Agreements or any agreement or instrument to which the Authority i5 a party and which is used or contemplated for use in the transactions contemplated by this Official Statement. UNDERWRITING William R. Hough & Co. and the other underwriters (collectively, the "Underwriters") have agreed to purchase the Bonds from the Authority (other than the Series A Bonds maturing April 1, 2029) and the Federal National Mortgage Association ("FNMA") has agreed to purchase from the Authority the Series A Bonds maturing April 1, 2029 pursuant to a Composite Bond Purchase Agreement, dated March 14, 1996, at a price equal to the original principal amount of the Bonds, plus accrued interest. The Underwriters will receive a fee of $185,312.50 upon delivery of the Bonds and a deferred fee of $84,142.80 upon the purchase of each Mortgage Certificate on a Certificate Purchase Date. The Composite Bond Purchase Agreement provides that the Underwriters and FNMA will purchase all of the Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in the Composite Bond Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions. The Composite Bond Purchase Agreement provides that nothing therein shall obligate the Authority to issue, deliver or cell any Bonds to the Underwriters or FNMA in the evc_nt either the Underwriters or FNMA fails, to purchase the Bcnd:l which each has agreed to purchase in accordance with the Composite bond Purchase Agreement. APPROVAL OF LROAL PROcBBDINAs Certain 1.-jal rr:stters incident to the authorization, issuance and rale by the Authority of the Sotds and with regard to the exclusion from gross inccsne for federal inocxw tax pureness of the interest thereon under exiating laws are subject to t!o approving opinion of Kilter, Cantield, Paddock and Stone i Lott. P..A., Pensacola. Florida, brxad Counsel. Copies of such opinion will be available at the tine at the delivery of the So�eds and the proposed tovs vt such opinion is set tctth in Appendix A hereto. Csetain 16"1 Matters will be passed upon tog the Anthnrity by Vsisla 4, OetammM4. desire. Ssnssesotl. (PtOribs. rd toe tree ?hkaetTA"tem by a !' 1 r deet, tAbwv. Oibits k •iftes'sOs. 10 a If Bond Coun>;nl has not been engaged or undertaken to review the accuracy, completeness or sufficiency of this Official Statement or any other offering material relating to the ponds; provided, however, Solid Counsel shall render an opinion to the Underwriters of the Bonds relating to the accuracy of certain stateMents contained herein under the heading "TAX EXEMPTION" and certain statene_lltP which SUTMarize provisions of the Indenture and the Bonds. RATINGS On or before the closing the Series A Bonds will he. rated "Aaa" arid the Series B Bonds will be rated "V Mig-1^ by Moody's. Such ratings will reflect only the view of such organization at the time such ratings are given, and the Authority makes no representations as to the appropriateness of the ratings. An explanation of the significance of such ratings may be obtained only from Moody's. The Underwriters have furnished certain information and materials to Moody's. Generally, a rating agency bases its rating on such information and material and on investigations, studies and assumptions furni:-hed to and obtained and made by the rating agency. There is no assurance that such ratings will continue for any given period of time or that such ratings will not: be revised downward or withdrawn entirely by the rating agency if, in the judgment of said rating agency, circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market_ price of the Bonds. MISCELLANEOUS i'he exccut :c:n .end +alis<•t'j fof oris Official statement. try th•: Ch.+i t rr:an of th- Authority 11- L—n duly authorized i:y 'ho. Aut hor i t.y . ESCAMBIA 000Nry DMIM ►I AUT}DRITY by: /Al S uxMir I _ jmrLhs 1 1 Lha a ram PC APiENIDIX A FORM OF POND COUNSEL OPINION (k ccw'eex 40 I.'k%(WIN IA f$ MII,I,F.R, CANEiKT.h, PATITN)(-K AND STONE & W -F -T, P.A. Pr,V%4CMA."f*!ITA 010-1 March 26, 1996 Chairman Escamhia County Housing Finance Authority Pensacola. Florida $28,970,000 ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES 1996 A (MULTI -COUNTY PROGRAM) Dated March 1, 1996 and $12,985,000 ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES 1996 B (MULTI -COUNTY PROGRAM) Dated March 26, 19903 Urar Sir: Wr have acted as bond coun%el in connection with the issuance by the Escamhia County biouhing F=inancr Authority (the ".Amimitty ), cit it• $`15,970,0X1(1 Sitgir Family Mortgage Revrnur Kinds, tidies 1996 A (Multi Cminty F'rwram) (thr '1996 A }Kinds[") and 11112,31450Y) SingIr Fmitih, Mortgage Reventir fumcls, Ser*-% 19%, H (Multi -County Progr.tnt) (thc P0.16 11 Hund. 1 (collertivrly, thr llonds'). Tltr lim As arr bring issued to currrnUy i0m id %chrchiW tmturttiry and tx>nci-+ beift iv,l"—mi d as a rewult of ntmlktigr lfs;in l,lrliayttirnt+t of ceAain outatandirt8 minglip i..mHy 111411Igyte r*-vrttur FxTrtci, id itu- Authc+tilt' ,tlxi to ntakr avottable rm rrranry w ptt-kimn pur stiant to whit -h ihr Aia Wnity -AW pun lvav omwil -barked aretif Hes ('(A'MA (rri-twates" and F'attnlr Sc" ;tina-utitir% 1 +:1 the Ckrmwnnwnt Nat unm Mwliw;tj c A- -,. bit* m ("GNW'l and the federal Va kw al Mart~ A■aoelal m ('14 NM1A' ). tr—,x i-livety. Mdrmitg prytnrnt of ttt mUdy prinripA a1 and Qttllliat tin quetili'ittg Maat' A4V Loans w+drb ManoW Loam air to he ort¢ &"vd ilir plan lord lad irt%din , institutions (ihr 'vviicipm ts'l in lira *mbttit and virnam all w commom of the m ittr at i `lrtnttu cieaaiai i qtr i bs rite Authamyr tat paRltipobtin in the old p/ S pi► (.asittatia`tl'i. pursut A I„ Mtat*W CIMI0111111IN1111 A/era eras a eats 111011W4 for Auitat.wi v, ttw Yin,i.i i+ ':1,rt,i - i 1 w 11teler and the tlelheiw. as liwtrsf- (tllead lu vmmisu tti wtcta its ammo nm 1 dr Illada. w 4w fit$ dw rtlwlift tie, AR IV, F a "s lmmobw r awilibll a1d omit a ft b is emm"d IV rd 1 Comw C*Wmmastlwtm 1 mill tummy • an Is "m •1 • fc•ollrcItvfIN, the "A(t'): a ic�olutlon adopted by !hr Autborlty on .ftily 6, l9O5. :}K amended and supplementeul (cofletih•ely, the 'kr-%ohMon ); an remitted clopy ort the Tn1st Indenture, dated as of March 1, 19% (the Indentlrre'), by and Irrtwern the Attth(}rity and SunTitim (Sank. Central Florida. %atlonal A.s<xt.likrn, a -t tnastet• (the "TtAlMer'): a cofrl• of each Mortgage Origination Agreement, dalcil as of lfarch 1. lf)`06. and executed by and among the Authority. the Paatticiliants. the Trustee and First Nationwide Mortgagr Corporallou (the ti 1%14crl (collettiychl, the Origination Agrr ,ment-0; the execttrd Program Administration Agreement (the Program Administration Agreement') and the Mottyige Ser icing Agreement (the "Mortgage Servicing Agrecmcnt'), each dated as of March 1, 1996, by and between the Authority and the Senicer; the interlocal Agrremenis between the Authority and the applicable Housing Finance Authori(v of certain of the Counties and between the Authority and the rc maining Counties, authorising the Authority to operate in each of such Counties. respectively; and such other documents• proceedings, opinions and proofs as we have deemed necessary to rrnder this opinion. We have assunied that the procrecis of the 11,onds will he applied in accordance with the Indenture, for the puriroscs described above. As (o questions of fact material to our opinion, we have relied inion representations of the Authority, the Trustre, the participants and the Servicer in the certified proceedings of the Authority, the Trustee. the participants and the Servicer. respectively, and in the Indenture, the Origination Agreements, the Program Administration Agreement, and the Mortgage Servicing Agreement (collectively. the "Program Documents') without undertaking to verify the :same by independent Investigation. Wtlh respect to (he opinions expressed below, we have relied tipon the opinion of even date herew(th of Paula G. Drummond, Esquire. counsel to the Authority, as to certain procedural matters. The opinions set Berth below air expressly unlined to, and we opine only with respect to, the laws of the State of Florida and the federal income tax laws of the United Stales of America. We have trot linen rogaged or undertaken to rc%•irw the accutacv. completenen- or 5ufticirmy of the Official Statenx•nt or oilier oflering ttratcriat relating to the ISonds and we exprets, no opinion herein relating therrto. The description of the tkinds in this opinion and other statements concerning the term% ant:d conditions of the is+taance of the 11onds do riot purport to set forth all of the (runs au:el conditions of tht NondA or of arty other document relating to the issuance sit the hk)nds. but :art, Intended only to idenitly the ISonds and to de-.( nbtr brieth, cctiain leature. therrot. This opinion .hall not he deemed or treated ad an offrtim! 4 in u1;1r. pio%prctu% or official stawniert. and to rust untended in any w;4%' to be .t Ili -lo -Ur ('104 '11114-11! ti—I Its ranntrtion ^11h the wir ttr dtlh^rry of tbv I44otti> As !A the dole brit-- alttl i+,a .t d 1,11 1'111 r>,.+=.,111wiiorl A 111• kwella" and th, !:tw 1ld Ilion ect hits-" In ibl` 114.411rI s+! .t'r 0 t fie of wit 14-;11 lwd undrr!"1110tift ice. I In ,• A1:I fttrctty is ding ctmatM aid vabdlp ridetift as a p tdjhr bum* c t of f.a ,r.a 1e- 10 f 1 r, ,11 h! , •i ! t'rr *OW cd P1=116L wah the powirr 41 +dop 1111 p.,11tr11;1 1111 ,,L;w •111+ .I*, „ii 146 1M CWSAMW4 4" row 1111110 lYttitttn and thr 1 ihlM tlllN 11.1 fl„ I!vii,;k, til' ;M>retow of t1r GNS" t1ndkenA am renm INSW a,111iIIr .i ,I 11411t41 m1.1 it!,„itud9b � ttW(la/IMtrthrlihmmija 11431awar M+4 artiulnetttld A!f fwd (i+ *r w% 9c"Olutiml And the Prt,granl hex 11111rril5 ( i.nAt(tute AAH and h(rxlinq nhil at; .;ice of tlir Atiihotity. ruforccablr at;ainsf the Aolh+ WN', TTir in(Irtllute trratcs a valid lien on and Pledge of the 11et191'd 1tr6'fnirra, as defineet in the Tndenture; 111-midrd however, that on and prior to (lie Applicable Mandalon• Tcntic -tate for the 1911 It Bonds, the 19r#i A Bond% are-lcr(Ircd sc,leiy h1,• the 1995 A 11rAged Revenues and the 1996 ft flonds are ,retired solely by the 15196 11 Pledged R %'emirs, Whirling. among other things, the 1514% It Proceeds Tylion investment Agreement, all as set forth in the indenture. 4. The Bonds have been chily and validly authorized, exectitcd and deltvrted by the Authority and constitute valid and binding obligations of the Authority. secttrrd by and entitled to the benefits of the Indenture. The Bonds and the ititerest thereon are. special, limited obligations of the Authority payable solely from the Pledged Revenues set forth In the indenture. 5. (a) The interest on the Bonds is. assuming continuing compliance by the Authority with the Internal Revernt; Code of 1986, as amended (the "Code•'), excluded from gross Income of the owners of the Bonds for federal income tax purposes. interest on the Bonds is a tax preference item tinder Seaton 57 of the Cotte and therefore may be subject to the alternative minimum tax imposed on individuals and corporations under the Code. The opinions set forth in this paragraph are subject to the condition that the Authority comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tar purposes. The Authority has ins(itltted Program rrquirements iii its agreements with the Participants and (tie Servicer which are intended to insure compliance with the Code. The Authority has covenantrd to comply with each such requirement. Failure to comply with ceiiain of such requtrements may insult in (he tnciuston of interest on the Bond% in groes income for (rdcral income tax piirposcs retroactive to the date of issuance of the Bonds. No opinion is rxpt-r%%M helcin regarding tide tax status of the 1411)f1) [i Bonds upon their remarketing oil tine Mandatorn Tender- Date. (b) we rxput-ss no opinion regarding other federal tax con --"luetic" Arising with rc-�lx-ri to illr Bonds. (c) I'hc Bonds and IIIc intern 1 Ilictroti arr t>.rtn114 tmm ta><atkm t(trtirr iii. laa, of the 1:1.0r of 11olvi.1, rkcrpt uixrti milx" d1 ivy Chapter 220. Florida titaiulf—, oll 111ter"l, il:t..It r or motif (til dr(►t o6li@.tti.s11, tmjvtel tN carpoMtionn U i, fu bt. il(:(t (hr #I&%% to the lb kir s of the Dm is and the tnf(,1,.,tlnttt; (,I ifer fit .,,Imi,�o. Ow Itutrattirr and ilia Floods stay tw sweet to thr IL( .I I (t, ik •„f dtr►f r . I u i I lit 41mardamle w/tit /enresi prouspke of a trdry. to thr r.did t xct( 1-.r ON ttw 44)k. r, ,,.n .lumilm patra of Ow fteW of rlutfti &M tate (—i(,,I11 (itf(,I(.+l pcowrft to the ()stood StESM at AawM and to 6@nkirptnr_ uvapbvmv. altritrutogilum and now tWwit law aftet t e>ted"CIs A�tt Mtereia+tarr ,r1 it.rr.siitt . i(.:,-ir(1 I f C(AM• lNAX7OM AND A iliyT.'* � it • 1 APPFtvi'.IR A -SUMMARY OF C'ONiINUINO DI>CLOSUR,R, AGREKKZNT Definitions "Agent" shall mean SunTrust Bank, Central Florida, National Association, acting in its capacity as Agent hereunder, or any successor Agent designated in writing by the Authority and which has filed with the Trustee a written acceptance of such designation. "Annual Report:" shall mean :any Annual Report provided by the Authority pursuant to, and as described in, the Continuing Disclosure Agreement. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Disclosure Representative" shall mean the executive director of the Authority or such other person as the Authority shall designate in writing to the Trustee from time to time. "Listed Events" shall mean any of the events listed in the Continuing Disclosure Agreement and described herein. "National HfIx-itory" shall r•,ean any Nationally Recognized Municipal Securities Information Repository for puIposes of the Rubs. Participating Undo zwz iter" shall mean any of the origirt.at undf�iwrit.ezr, nf. the Bondu required to co -pi% wit -Ii the Rut-, ,t —_tinpc.tion with offering of the Bonds. "FePf,z t. " shall mP.irt ,017 Alltlu,ll Report. Payrnt Date Statement or Quartet ly Repo rt pr t.f; ;i t:y t h - Authority pursuant to, and as described in, tttst Agreem.-, t ;Y" shall .;, ., :: %&ttonal Rpoettory and each "WuJe" shall mean Ruts lfe2.12(b)iSl adopted by the /octa n lM Arid Esc, Kan,,Jr t'- mmisstm twadsr tlls securities deAeope Act of is". ar. t }ir- raftie- rt>.s'P k+e aet-ad A free titre to tams ASS sas tae at -ate of Il4W&do- . 0611 wMas atw pt2464 est Praveso ��► or "Kit r "Be sset ad tar Meta so a 0"" Etta" SM ear pogrom se t*s Rt s-0 "W""smd as aN► OW us SWW St date ad 0 t }.x> hi;,; -ss' C -<_•Tr is¢i :.. f the dat_p of t}.® _ntittuittg E1isCl• st:sae Is s! �_ ,art , thRrA is no state P --j .sitnry in the qt.?,. Provision of Reports The Authority shall l>rovic}e, or s} -,al i cause the A•ent to provide, not later than April 1. of each year, ccrrr^nTtrviriq Kith April 1, 1997, to each Repository an Annual Report with respect to the prior Fiscal Year of the Authority and the Payment nate Staterrents and Quarterly Reports described below. In each case, the Reports may be submitted as a single docu-ment or as separate docu^;Ants comprising a package; provided that the financial statements of the Authority may be submitted separately from the balance of the Annual Report and later than the date required above for the tiling of the Annual Report if they are not available by that dare. It the Authority's Fiscal Year changes, it shall give notice of such change in th., same manner as for a Listed Event. If the Agent: is unable to verify that an Annual Report has been provided to the Repositories by the date required above, the Agent shall, after the date specified above, send a notice to each Repository and the State Repository, if any, stating that such Annual Report has not been timely completed and, if known, Mating the date by which such Annual Report will be filed. Content of Reports (a) Tire Authority's Annual Report shall contain or include by reference Uhe- following: 1. The audited financial statem<_•nts of the Authority for the prier Fiscal Year. 2. Updated infoxmat icon which was originally dis:;aminated as p=art of the Official statenent. to the extent such information is not set forth in rh. c ztifir.f fin:+rocia1 catateeents of the Authoriry. (b) Tfo• Authority's i'aywsat Oats• statewente shall contain or include by to other reports. the foilc-wtnq information as of the prier it-trxeat payatttt date: 1. The outstandiaq principal amount of the bonds. 1. The balances in rt>r funds sad aoaonnts betd uwdmr thf todentute . 3, Ths pf"Wipst batawoss of tbf autataedLee MW 4ess i f ic&tos owd /swwu Noe lsaw 9t tes - t • • ca l caut•as taw ed tbs &soft to t taxi t i t y 949 &0 of tbs IaOW o. is! Tr Awtawrttr•• o.Mdastr d""elessa'M use.f.ns1.. asfsadu� sbo �" ��'�ta d"" •wmw s ad r Fr" but nct. purchased by the Servicer and amounts purchased by the Servicer, but not pooled into a GNMA Certificate or Fannie Mae Security, The Quarterly Reports shall also contain information regarding the remaining time period for any reservation of amounts in the Acquisition Fund. Reporting of Significant Events (a) The Authority shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material (the "Listed Events"). 1. principal and interest payment delinquencies; 2. non-payment related defaults; 3. modifications to rights of Bondholders; 4. optional, contingent or unscheduled bond calls; 5. defeasances; 6. rating changes; 7. adverse tax opinions or events affecting the tax- exempt status of the Bonds; 8. unscheduled draws on debt service reserves reflecting financial difficulties; 9. unscheduled draws on credit enhancements reflecting financial difficulties; lo. substitution of credit or liquidity providers, or their failure to perform; 1.1. release, substitution or sale of property securing repayment of. the Ronda. Wh.never the Authority obtains knowlr_dge of the occurrence of a Listed Event, because of a notice, the Authority shall as soon as possible determine if such event would be material under applicable federal securities laws. It the Authority has determined that knowledge of the occurrence. of % Listed Event would be material under applicable federal securities laws, the Authorityshall prat l y prepare the rust i re of the occurrence of a Listed t to t tre form to be tiled with t t,e agpoeitoriae, notify the Trustee to art it Ing and de 1 i ve r to t t,.• 't' i , wt M sueb form of sot toe to be t i led with tho 4te Uaicanha. ,ire shall iristett the Trustee to r..tr.t. t�,.• . it Yft-a, 7'�rulr,�ti,.r, t i�f,,,rtira� gas ii4gation •�' , . i �,. a=r tees tfastisa�L� O�elesrt+ tin haul deceseemse. $* too A.! t4 CAW ftews a Agent The Authority may, from time to time, appoint or engage an Agent to assist it in carrying out its obligations tinder the Continuing Disclosure Agreement, and may discharge any such agent, with or without appointing a successor Agent. The Agent shall not be responsible in any manner for the content of any notice or report prepared by the Authority pursuant to the Continuing Disclosure Agreement. The Authority shall pay the fees due the Agent as set forth in a letter submitted by the Agent to the Authority prior to the delivery of the Bonds. The Trustee shall not be entitled to receive payment for any costs, fees or expenses hereunder if it is not also serving as Agent. Amendment; Waiver Notwithstanding any other provision of the Continuing Disclosure Agreement, the Authority, the Agent and the Trustee may amend the Continuing Disclosure Agreement and any provision of the Continuing Disclosure Agreement may be waived only in the manner prescribed in the Rule. Additional Information Nothing in the Continuing Disclosure Agreement shall be deemed to prevent the Authority from disseminating any other information, using the means of dissemination set forth in the Continuing Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by the Continuing Disclosure Agreement. If the Authority chooses to include any information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is specifically required by the Continuing Disclosure Agreement, the Authority shall have no obligation under the Continuing Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Default In the event of a failure of the Authority, the Agent or the Trustee to comply with any provision of Lhe Continuing Disclosure Ajrhement, the Trustee may (and, at the request of any 1�azticipating Undexwrit_e.r or the Holders of at least 21>t aggregate k t i nc•ipal xmc>urat of c lttstanding Bonds, but subject to the �,t,. isic.na of the indenture, shall!, or any Holder or Beneficial c..f t l;r~ BAteds U&y take such actions as .ay be necessary and i.t,t<�priat., io¢ltdi" sakia� Mandate or specific pp�erformancs by t t or dor , to owes the Lt Xty, t he Agent ar tbs TrustM, ss It, c-aee may be, to cosply wi+!, its oblWatlon# under tbs tct i nu k nq LlaClowre Ajroesw A ief ault uodsr t hs goat ►nu►ap 13 i er 1 ua u r W AQP Shall ULA Lm d www d as 6veat of f:Of aU l t tmdss I tca fl At • S" t&w sole jewA"V uebsr It his Guilt &au►ay Moctesw* Agtwmrtlt i to t" owe" ofs01y ft el lu" 99 tM hit br i t h . the S14PMK 1 t tta `t't Ual es tie i1t711ply W t the O t"ltw Otact0mg4p ArilssiJsst 1 t- at, ar't i Fill 1= , *a-ye l ;'Met a� . 6 4 Beneficiaries The Continuing Disclosure Agreement shall inure solely to the benefit of the Authority, the Trustee, the Agent, the Participating Underwriters, Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.