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Section 5. Term of Restrictions. {a) Occupancy Restrictions. The term of the Occupancy Restrictions set forth in Section 3 of this Regulatory Agreement shall commence on the first day on which ten percent (10%) of the residential units in the Project are occupied and shall end on the latest of the following: (i) the date which is 15 years after the date on which at least 50% of the units in the Project were first occupied; or (ii) the first day on which none of the Bonds are Outstanding; or (iii) the termination date of any Housing Assistance Payments Contract relating to the Project under Section 8 of the United States Housing Act of 1937, including the initial term and any. renewal thereof. (b) Rental Restrictions. The term of the Rental Restrictions set forth in Section 4 of this Regulatory Agreement will remain in effect during the longer of (i) the period during which any of the Bonds remain Outstanding; or {ii) the term of the Occupancy Restrictions set forth in paragraph (a) of this Section 5. (c) Eazlier Termination of Restrictions. Notwithstanding the provisions of (a) and (b) of this Section 5, this Regulatory Agreement and all other restrictions hereunder shall terminate upon foreclosure of a mortgage or transfer of title to the Project by deed in lieu of foreclosure and retirement of the Bonds; provided, however, that the restrictions pursuant to Section 42{h)(6) of the Cade shall survive foreclosure for three (3) years. In addition, this Regulatory Agreement and the restrictions hereunder shall. also cease to apply in the event of an involuntary noncompliance caused by unforeseen events such as fire, seizure, requisition, a change in federal law or an action of a federal agency after the date of issue of the Bonds which prevents the Trustee from enforcing the requirements of this Regulatory Agreement or condemnation or similar event; provided in all such cases that: (i) the Bonds are retired as soon as reasonably practicable or (ii) any insurance proceeds or condemnation award or other amounts received as a result of such loss or destruction are used to provide a project which meets the requirements of Section 142(d) or any successor provision of the Code and applicable Treasury Regulations, or any successor law or regulation, in which case this Regulatory Agreement shall be automatically reinstated as to such successor project. However, the foregoing provisions of this paragraph shall cease to apply in the event of foreclosure, transfer of title by deed in lieu of foreclosure or similar event if, at any time subsequent to such event and during the period set forth in paragraph (a) of this Section 5, the Borrower or a related person obtains an ownership interest in the Project for federal tax purposes. {d) Termination of Regulatory Agreement. Unless earlier terminated pursuant to the provisions of paragraph (c} of this Section 5, this Regulatory Agreement shall terminate upon the later of the termination of the Occupancy Restrictions or the Rental Restrictions as provided in paragraphs (a) and (b) of this Section 5. (e) Removal from Real Estate Records. Upon delivery by the Borrower to the Trustee of an opinion of Independent Counsel that the conditions to termination of this Regulatory Agreement have been met, the Trustee shall, upon request by the Borrower or its assigns, file any documentation approved by Independent Counsel as necessazy to remove this Regulatory Agreement from the real estate records of Ramsey County. 20299751