11-14-01 2. LOAN AGREEMENT - Laserfiche WebLink

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restoration, and the operation of the Project Facilities by the Borrower as so completed,will not cause interest on any Tax-Exempt Bonds to be included in gross income for federal income tax purposes. (b) Option Redemption of the Bonds. In the event that the Borrower shall deliver B- to the Trustee a written estimate by an Independent person qualified to express such opinion(including an Independent licensed architect)that that the Project Facilities cannot be rebuilt, restored or replaced within 12 months from the date of the destruction of damage,all outstanding Series 2001 Bonds(and all other outstanding Bonds redeemable because of such any event) shall be redeemed in whole on the next Interest Payment Date for the Series 2001 Bonds occurring at least 45 days after the date of the notice given as to exercise of this Option B, and the Net Proceeds shall be deposited in the Optional Redemption Fund and shall be applied for that purpose. In such event,the applicable outstanding Bonds shall be redeemed at par plus accrued interest, and redemption shall be effected pursuant to the provisions of, in the manner, and with the effect provided in the Indenture. If the Net Proceeds of insurance,together with all amounts then held by the Trustee under the Indenture available to redeem or retire the applicable Bonds, shall be insufficient to so redeem the applicable outstanding Bonds(including and expenses of redemption), the Borrower shall pay such deficiency to the Trustee as a Loan Repayment;and the Net Proceeds of insurance,together with such Loan Repayment and amounts held by the Trustee under the Indenture, shall be applied to such redemption of the Bonds. If all outstanding Bonds have been fully paid and all obligations of the Borrower hereunder have been paid or provided for,all remaining Net Proceeds shall be paid to the Borrower. Section 5.11 Condemnation. If any portion of the Project Facilities or any material portion thereof becomes subject to any eminent domain or condemnation proceeding,the Borrower shall give prompt notice thereof to the Trustee. In the event that the Net Proceeds for such event shall not exceed$250,000 and no Default has occurred and is continuing,the Net Proceeds shall be paid to the Borrower,who shall forthwith repair,reconstruct and restore the Project Facilities to substantially the same condition and value as existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration,the Borrower will apply the Net Proceeds to the payment or reimbursement of the costs thereof. If a Default has occurred and is continuing, all Net Proceeds shall be deposited with the Trustee for application in accordance with the Indenture. If Net Proceeds from the condemnation exceed $250,000, all Net Proceeds shall be deposited with the Trustee for credit to the Insurance and Award Account, unless the Borrower shall notify the Trustee of the Borrower's election to redeem all then redeemable outstanding Bonds as hereinafter provided,in which case all Net Proceeds shall be deposited in the Optional Redemption Fund for redemption of Bonds available to be redeemed because of such event. If Net Proceeds will exceed $250,000, then the Borrower shall within 60 days after such condemnation elect one of the following two options by written notice of such election to the Trustee(to the extent an option is available): (a) Option A - Repairs and Improvements. The Borrower may elect to use the Net Proceeds of the award made in connection with such condemnation or taking for additions, repairs and improvements to the Project Facilities to restore or replace the Project Facilities to substantially the same condition and value as existed prior -37-