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<br />ARTICLE V <br /> <br />FURTHER COVENANTS <br /> <br />501. Covenant as to Application of Proceeds of Bonds. The Agency <br />hereby coven~at lt wlll apply less than twenty-flve percent (25%) of the <br />proceeds of the Bonds to the purchase of Mortgage Loans made for the purpose <br />of Financing the construction of Residences used in the trades or businesses <br />of any persons who are not exempt persons within the meaning of Section 103(b) <br />of the Internal Revenue Code of 1954, as amended, and any applicable <br />regulations promulgated thereunder. <br /> <br />502. Covenant Re Purchase of Mortgage Loans. The Agency covenants that <br />it will not approve for purchase by the Trustee Mortgage Loans with respect to <br />which: <br /> <br />(i) The ratio of original Mortgage Loan amounts to the sales prices of <br />such residential units equals ninety-five percent (95%) if such purchase will <br />increase the total aggregate principal amount of such 95% Mortgage Loans to <br />more than 50% of the total aggregate original principal amount of Mortgage <br />Loans theretofore purchased by the Trustee; and <br /> <br />(ii) The ratio of original Mortgage Loan amounts to sales prices of <br />residential units equals or exceeds ninety percent (90%) (including 95% <br />Mortgage Loans) if such purchase will increase the total aggregate principal <br />amount of such ninety percent (90%) Mortgage Loans to more than fifty percent <br />(50%) of the total aggregate original principal amount of Mortgage Loans <br />theretofore purchased by the Trustee. <br /> <br />The purchase price of Mortgage Loans shall be the unpaid principal amount <br />thereof on the date of purchase, plus accrued interest, if any, prorated as of <br />the date of purchase. <br /> <br /> <br />504. Covenant as to Mortgage Insurance. The Agency hereby covenants <br />that all Mortgage Loans wlil be lnsured only by Mortgage Insurers which are <br />companies licensed to insure mortgages in the State and qualified to provide <br />insurance on mortages purchased by FNMA or FHLMC and approved by the Agency <br />and that all Mortgage Loans on residential units will have the following <br />Private Mortgage Insurance coverage: <br /> <br />12 <br /> <br />. <br /> <br />. <br /> <br />. <br />. <br /> <br />. <br />. <br />