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Section 7. Legal Matters. The Borrower shall furnish the Government a
transcript of proceedings for the authorization, issuance, sale and security
of the Bonds evidencing that the Bonds, when delivered and paid for, will
constitute binding and legal obligations, payable and secured in accordance
with their tenor, and that all proceedings for the financing and the acquisition,
construction and development of the Project preliminary to the delivery of the
Bonds to the Government have been had and adopted in due time, form and
manner as required by law.

Section 8. Security. The Borrower shall include in the proceedings for the
authorization, issuance, sale, and security of the Bonds, provisions for the
payment of the principal of and interest on the Bonds and for the security
thereof of the nature required to assure such payment and to safeguard the
loan hereunder, including, in case the Bonds are payable in whole or in part
from any special sources of revenues, provisions designed to assure the pro-
duction of such revenues and the application thereof to the extent required for
the payment and security of the Bonds and interest thereon, including the main-
tenance of reasonable reserves.

Section 9. Opinion of Bond Counsel. Simultaneously with the delivery of any of
the Bonds to the Government, the Borrower shall furnish to the Government the
approving opinion of bond counsel who shall be satisfactory to the Government,
and covering generally all of the Bonds and, specifically and unqualifiedly, the
Bonds then being delivered to the Government.

Section 10. Construction Financing. The Borrower shall make every effort to
obtain interim financing from private sources. Prior to entering into formal
agreements for such financing, the Borrower shall furnish the Government with
(1) a satisfactory preliminary opinion of bond counsel; (2) evidence of its ability
to finance on reasonable terms the cost of the Project up to the time the Bonds
are ready for delivery; and (3) evidence of the receipt of firm bids establishing
that the Project can be constructed within the approved estimated cost thereof.

In the event any loan under temporary financing should become due prior to the
time when the Bonds are ready for delivery, the Borrower may apply to and,
provided that the Borrower is in compliance with the Terms and Conditions
of this Loan Agreement, receive from the Government an advance against the
Bonds in an amount sufficient to liquidate such temporary loan.

Should the Borrower be able to demonstrate to the Government's satisfaction
that interim financing on reasonable terms is not available, the Government
will consider requests for advances in anticipation of the issuance of the Bonds.
Requisitions for construction advances shall be accompanied by such supporting
data as the Government may require. The Government will honor such requisi-
tions in amounts and at times deemed by it to be proper.

Any funds made available to the Borrower by the Government pursuant to this
Section shall be repaid in full from the first proceeds derived from the sale of
the Bonds, and shall bear interest at the rate specified for the Bonds in the
Loan Agreement from the date made available to the date of repayment.

Section 11. Prerequisites to Loan Disbursements. Prior to the Government
disbursing any portion of the loan proceeds, the Borrower shall present satis-
factory evidence that:

(a) It is able to provide the furnishings and movable equipment required
for the operation of the Project, as specified in Section 3 hereof;

(b) It has deposited in the Construction Account such funds as are neces-
sary with the loan proceeds to assure completion of the Project;
and

(c) It is able to provide the Project site or sites free from all encum-
brances.

Section 12. Construction Account. The Borrower shall set up in a bank or
banks which are members of the Federal Deposit Insurance Corporation, or
with the fiscal agency of the Borrower fixed by law, a separate account or
accounts (herein collectively called the "Construction Account") into which
shall be deposited any temporary loans, Government advances, and proceeds
from the sale of the Bonds (except accrued interest payments), and the addition-
al funds, if any, required by the provisions of the Loan Agreement to be furnished
by the Borrower in order to assure the payment of all Project Costs. Moneys in
the Construction Account shall be expended only for such purposes as shall have
been previously specified in the project cost estimates approved by the Govern-
ment.