02-14-1996 Council Agenda - Laserfiche WebLink

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02 -09 -1996 10:49 612 339 5897 BEST &FLANAQAN P.08 THE GUARANTY Dominium Group, Incorporated, Jack Safer and David Brierton (the "Guarantors") will deliver to the Trustee a Limited Construction Completion and Operating Deficits Guaranty, pursuant to which they will jointly and severally guaranty (in an aggregate amount up to $300,000) the completion of the rehabilitation of the Project and payment of costs incurred by the Partnership for that purpose, and will, under certain circumstances as provided in the Guaranty, make payments to the Trustee for deposit in the Bond Fund necessary to meet any and all Operating Expenses related to the Project, including debt service on the Bonds. The Guaranty will remain in effect until the Guaranty Release Date, the Guaranty First Alternate Deposit and Release Date or the Guaranty Second Alternate Deposit and Release Date (each as further described herein). The Loan Agreement requires that, so long as the Guaranty is in effect, except in the event of death or disability of the individual partners, no changes in the ownership percentages of Dominium Group, Incorporated, or in the partnership interests of Jack Safar and David Brierton in the Partnership will be permitted without the prior written consent of the owners of at least fifty percent (50%) of the outstanding principal amount of the Bonds. See "THE LOAN AGREEMENT - Status of Partnership" herein. ESTIMATED SOURCES AND USES OF FUNDS' Sources of Funds Proceeds of Bonds $3,890,000+ Partnership Equity (1) 181.215 TOTAL $4.061.215 Uses of Funds' Acquisition Costs (excluding land) $2,496,000 Rehabilitation 612,250 Land 354,000 Tax and Insurance Escrows 27,062 Debt Service Reserve Fund 312,700 Loan Costs, including Costs of Issuance (2) 221,963 Other (3) 36.480 TOTAL X1413 'Preliminary, subject to change. -17- Page 19