51

45

EXHIBIT "A"
TERMS AND CONDITIONS

Constituting Part of the Loan Agreement Providing for the Financing and
Construction of College Housing and Service Facilities Under Title IV of the
Housing Act of 1950 (Public Laws 475, 81st Congress, as amended)

Section 1. Definitions. As used in these Terms and Conditions:

"Government" meams the United States of America or the
Housing and Home Finance Agency.

"Project" means the structure or structures which the Govern-
ment has agreed to aid in financing under the Loan Agreement.

"Loan Agreement" means the contract between the Government
and the Borrower covering the Project and includes both these
Terms and Conditions and other contract instruments.

"Borrower" means the educational institution designated in the
Loan Agreement.

"Bonds" mean the obligations which the Government has agreed
to purchase under the Loan Agreement.

"Project Costs" mean the cost of construction work for the Project
including fixed equipment, cost of necessary architectural/
engineering services, legal, administrative and clerical costs,
cost of land acquisition, necessary travel expenses, costs
imposed by the Government to reimburse it for its field expenses,
interest during construction, and other necessary miscellaneous
expenses, all as determined by the Government.

Section 2. Prerequisites to Government's Obligations. The Government shall
be under no obligation to advance funds or to purchase any Bonds under the
Loan Agreement if:

(a) Representations. Any representation made by the Borrower to the
Government in connection with the application or loan shall be in-
correct or incomplete in any material respect, or the Government
determines that the Borrower has failed to proceed promptly with
Project financing or construction.

(b) Financial Condition. The financial condition of the Borrower shall
have changed unfavorably in a material degree from its condition
as heretofore represented to the Government;

(c) Concurrence by Government. The Borrower, having submitted to the
Government the documents mentioned in Section 16 hereof, shall have
proceeded without having been advised by the Government that the
same are satisfactory; it being the purpose of this provision to insure
that no action will be taken in the development of the Project which
would result in a legal or contractual violation rendering it impossible
for the Government to make the loan hereunder or for the parties to
accomplish the objects of the Loan Agreement.

Section 3. Furnishings and Movable Equipment. The Borrower shall, on or
before substantial completion of the Project, provide from sources other than
the loan hereunder, and from sources and in a manner which will not jeopardize
the security of the Bonds, the furnishings and movable equipment necessary to
the full enjoyment of the use, occupancy and operation of the Project.

Section 4. Project Site. The Project shall be located on lands of the Borrower,
at a site to be approved by the Government.

Section 5. Title Evidence. The Borrower shall furnish the Government satisfac-
tory evidence of its ownership of the Project site.

Section 6. Purchase of Bonds. The Borrower shall initiate and prosecute to
completion all proceedings necessary to the authorization, issuance, and sale
of the Bonds and to the security thereof. When the said proceedings have been
completed to the point of but not including the delivery of the Bonds to the
Government, the Borrower may file a requisition requesting the Government to
purchase the Bonds. The requisition shall be supported by such data as the
Government shall require to determine whether the Government is obligated
under the provisions of the applicable Loan Agreement to honor such requisition.
If the Government is so obligated, it will purchase the Bonds covered by such
requisition, within the limitations, however, specified in the Loan Agreement.