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‘.. • It is contemplated that the Bonds shall have a maturity of up to forty (40) years and will be priced to the market at the time of issuance. The Bonds may be issued in two series, one of which has a claim on revenues senior to the other. The City has not and will not hire additional staff for the administration of the Program. The City intends to select and contract with a financial institution or trustee experienced in trust matters to administer the Bonds. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program except as otherwise provided by resolution of the City. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Subsection C. Standards and Requirements Relating to the Projects Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the Owner pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the refunding of the original Project financing. The funds will be made available to the Owner pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Owner. (2) The Owner will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (3) No Housing Unit may be in violation of applicable zoning ordinances or other applicable land use regulations, including any urban renewal plan or development district plan, and including the state building code as set forth under Minnesota Statutes, Section 16.83, et seq. Subsection D. Evidence of Compliance. The City may periodically require certification from either the Owner or from the Owner or such other person deemed necessary concerning compliance with various aspects of the Program Subsection E. Issuance of Bonds. To refund the Project financing, the City may, by resolution, authorize, issue and sell its refunding revenue bonds in one or more series, and using any additional credit enhancement devices determined by the City to be necessary or desirable for each such series, in an aggregate principal amount estimated to be up to $9,000,000. The Bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be payable primarily from the revenues of the Program authorized by this Section. The City anticipates the issuance of such amount prior to the end of 2006. • Subsection F. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, HOUSING PROGRAM 3