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Attachment B (b) Disbursements. Amounts on deposit in the Project Loan Fund shall be disbursed from time to time by the Fiscal Agent to the Title Company in accordance with this Funding Loan Agreement and the Construction Continuing Covenant Agreement, and thereafter by the Title Company pursuant to the Disbursing Agreement, for the purpose of paying: (i) Costs of the Project; (ii) other costs of the Project from the Project Account, subject to the ninety-five percent (95%) Ðqualified residential rental projectÑ use requirement in Section 142(a) of the Code, the two percent (2%) costs of issuance limitation in Section 147(g) of the Code, the reimbursement limitation in Treasury Regulations, Section 1.150-2, and the working capital limitations in Treasury Regulations, Section 1.148-6(d); and (iii) other costs of the Project from the Borrower Equity Account. In addition, amounts in the Project Loan Fund shall be transferred to the Loan Prepayment Fund, the Rebate Fund, and the Borrower at the times and in the manner provided in subsection (e) of this Section 4.02. Amounts in the Project Account of the Project Loan Fund shall be transferred to the Loan Prepayment Fund, the Rebate Fund, and the Borrower at the times and in the manner provided in subsection (e) below. (c) Transfers and Requisitions. The Fiscal Agent shall make disbursements from the respective accounts of the Project Loan Fund for purposes described in subsection (b) of this Section 4.02 only upon the receipt of Requisitions signed by an Authorized Officer of the Borrower and countersigned by an Authorized Officer of the Servicer signifying the consent to the Requisition by the Servicer. Borrower shall also provide to Initial Funding Lender or Servicer an Advance Request in connection with any requisition for disbursement from the Project Account in the form of Exhibit E hereto. The Fiscal Agent shall have no right or duty to determine whether any requested disbursement from the Project Loan Fund complies with the terms, conditions, and provisions of the Construction Continuing Covenant Agreement. The countersignature of the Authorized Officer of the Servicer on a Requisition shall be deemed a certification and, insofar as the Fiscal Agent and the Governmental Lender are concerned, constitute conclusive evidence, that all of the terms, conditions, and requirements of the Construction Continuing Covenant Agreement applicable to such disbursement have been fully satisfied or waived. The Fiscal Agent shall, immediately upon each receipt of a completed Requisition signed by an Authorized Officer of the Borrower and countersigned by an Authorized Officer of the Servicer, initiate procedures with the provider of a Qualified Investment to make withdrawals as necessary to fund the Requisition. Notwithstanding anything to the contrary contained herein (i) no signature of an Authorized Officer of the Borrower shall be required during any period in which a default has occurred and is then continuing under the Loans or any Financing Document (notice of which default has been given in writing by the Funding Lender Representative or the Servicer to the Fiscal Agent and the Governmental Lender, and the Fiscal Agent shall be entitled to conclusively rely on any such written notice as to the occurrence and continuation of such a default), and (ii) during the Construction Phase, the Financial Monitor shall provide all countersignatures, consents, waivers and approvals otherwise required of Servicer under or pursuant to this Section 4.02, all as further described in the Construction Continuing Covenant Agreement. (d) If a Requisition signed by an Authorized Officer of the Borrower and countersigned by an Authorized Officer of the Servicer or (as permitted hereunder) solely by an Authorized Officer of the Servicer, is received by the Fiscal Agent, the requested disbursement shall be paid by the Fiscal Agent to the Title Company, as soon as practicable, but in no event later than three 28 12502516v3