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FOLLOWING RISK FACTORS,WHICH ARE NOT MEANT TO BE AN EXHAUSTIVE <br /> LISTING OF ALL RISKS ASSOCIATED WITH THE PURCHASE OF THE <br /> SUBORDINATE BONDS. THE ORDER OF PRESENTATION OF THESE RISK <br /> FACTORS DOES NOT NECESSARILY REFLECT THE ORDER OF THEIR <br /> IMPORTANCE. POTENTIAL INVESTORS SHOULD BE THOROUGHLY FAMILIAR <br /> WITH THIS ENTIRE OFFICIAL STATEMENT INCLUDING THE APPENDICES <br /> HERETO IN ORDER TO MAKE A JUDGMENT AS TO WHETHER THE <br /> SUBORDINATE BONDS ARE AN APPROPRIATE INVESTMENT. <br /> PURCHASE OF THE SUBORDINATE BONDS WILL CONSTITUTE AN <br /> INVESTMENT SUBJECT TO A HIGH DEGREE OF RISK,INCLUDING THE RISK OF <br /> NONPAYMENT OF PRINCIPAL AND INTEREST AND SEVERELY LIMITED <br /> REMEDIES AND SECURITY. <br /> General <br /> THE SUBORDINATE BONDS ARE SECURED BY A SUBORDINATE LIEN ON <br /> THE PROJECT WHICH IS WHOLLY SUBORDINATE TO THE MORTGAGE <br /> SECURING THE SENIOR BONDS. SO LONG AS THE SENIOR BONDS REMAIN <br /> OUTSTANDING,THE TRUSTEE'S ABILITY TO EXERCISE REMEDIES UNDER THE <br /> SUBORDINATE MORTGAGE IS SEVERELY LIMITED. A DEFAULT WITH RESPECT <br /> TO THE SENIOR BONDS DOES NOT, EXCEPT UNDER CERTAIN <br /> CIRCUMSTANCES, CONSTITUTE A DEFAULT ON THE SUBORDINATE BONDS, <br /> AND THE REMEDIES AVAILABLE TO THE TRUSTEE AND THE SUBORDINATE <br /> BONDHOLDERS IN THE EVENT OF A DEFAULT ON THE SUBORDINATE BONDS <br /> ARE SEVERELY LIMITED. <br /> The indebtedness evidenced by the Subordinate Bonds is and shall be subordinate in <br /> right of payment to the prior payment in full of all the indebtedness evidenced by the Senior <br /> Bonds to the extent and in the manner provided in the Indenture. The Subordinate Bonds are <br /> and shall be subject and subordinate in all respects to the liens, terms, covenants and <br /> conditions of the Senior Bonds. The rights and remedies of the holder and each subsequent <br /> holder of the Subordinate Bonds under the Indenture are subject to the restrictions and <br /> limitations set forth in the Indenture. Nothing in the Indenture shall be construed to prohibit <br /> current payment of amounts due with respect to the Subordinate Bonds if all payments then <br /> currently due under the Senior Bonds have been made. <br /> The obligations of the Borrower under the Loan Agreement securing the Subordinate <br /> Bonds are nonrecourse as to the Borrower, and as such are limited to the assets of the <br /> Borrower(which consist solely of the Project and which are subject to the Mortgage), and <br /> the amounts held in the funds and accounts(other than the Rebate Fund) established under <br /> the Indenture. Future revenues and expenses of the Borrower and the Project are subject to <br /> conditions which may change in the future to an extent that cannot be determined at this <br /> time. <br />