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ARTICLE VII <br />�'inancinE <br />Section 7.1. Deve(oner Financin� (a) The parties agre� and acknowledge that the <br />Dev�loper intends to finance the constructio� of the Minimum Improvements throvgh issuance by the <br />City af qualified SO1(c)(3) housing revenue bonds {the "Housing Revenue Bonds"). The City agrees to <br />issue the Housing Revenue Bonds, subject to the terms and conditions of this Section. <br />{b) The Housing Revenue Bonds may be issued in one or more seri�s, at Developer's option.. <br />Each series of Housing Revenue Bonds must be issued in accordance with ali terms and conditians of the <br />City's Procedure for Application to the City of Arden Hiils for Private Activity Ravenue Band Financing <br />(the "Private Activity Bond Policies") that are in effact as of the date of issuance qf the applicable series. <br />[To be discussed] <br />{c} If #he City determines that issuance of any series Housing Revenue Bonds is reasonably <br />expected to cause governmental bonds issued by the City in that calendar year to be ineligible for <br />designation as "qualified � exempt obligaiions" under Section 2S5{b}(3} of the Internal Revenue Code <br />of 1986, as amezzded (also known as "bank qua(ified"}, the Developer will be required to reirn�urse the <br />City, at the time of issuance oi the City's bonds in ihat calendar year, for any interest ra#e differential <br />between banlc quali�ed and non-bank qualified bonds, as determined by the City's �dependent Financial <br />advisor. <br />{d} Deveioper may not seek, and City will not consent to, issuance of any series Housing <br />Revenue Bonds by any unit oigovernment other than tb.e City. [To be discussed.] <br />Section 7.2. Subordinatton. In order to facilitate issuance of the Housing Revenue Bonds, the <br />Authority agees to subardinate its rights vnder this Agreement provided tI�at such subordinatfon shall be <br />subject to such reasor�able terms and conditions as the Au�hority and thc underwriter and trustee �'or the <br />Housing Revenue Bonds mutually agree in writing. <br />(The remainder of this page is intentionally �eft blank_) <br />378990v6 S7B AR200-10 <br />18 <br />