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<br />ARTICLE XIV
<br />DEFEASANCE
<br />
<br />1401.
<br />
<br />Defeasance.
<br />
<br />(A) Subject to the provisions of subsection D of this Section
<br />1401, if the Agency shall payor cause to be paid, or there shall otherwise be
<br />paid, to the Holders of the Bonds then Outstanding, the principal of,
<br />Redemption Price, if any, and interest to become due thereon, at the times and
<br />in the manner stipulated therein and in this Resolution, or there shall
<br />otherwise be paid or shall have caused to be paid, or there shall have been
<br />made provision to pay upon maturity or upon redemption prior to maturity, to
<br />the Holders of the Bonds then Outstanding, the principal of or Redemption
<br />Price, if any, and interest to become due thereon, on all Bonds then
<br />Outstanding, through setting aside trust funds or setting apart in a special
<br />trust fund or special trust account created pursuant to this Resolution or
<br />otherwise, or through the irrevocable segregation for the purpose in some
<br />other trust fund or trust account with the Trustee or another trustee, fiscal
<br />agent or otherwise, moneys or Federal Securities, or both, sufficient
<br />,therefor, including, but not limited to, interest to be earned on Federal
<br />Securities, then the lien of this Resolution, including, without limitation,
<br />the pledge of the Revenues, the covenants, agreements and other obligations of
<br />the Agency to the Bondholders, and all other rights granted hereby, shall
<br />thereupon cease, terminate and become void and be discharged and satisfied,
<br />and the principal of, Redemption Price, if any, and interest on the Bonds
<br />shall no longer be deemed to be Outstanding and unpaid; provided, however,
<br />that nothing in this Resolution shall require the deposit of more than such
<br />Federal Securities as may be sufficient, taking into account both the
<br />principal amount of such Federal Securities and the interest to become due
<br />thereon, to implement any refunding of the Bonds.
<br />
<br />(8) Then, in such event, the Trustee shall, upon request of the
<br />Agency, execute and del iver to the Agency all such instruments as may be
<br />desirable to evidence such release and discharge and execute and deliver to
<br />the Servicer thereof assignments (which assignments shall be received by the
<br />Servicer as trustee of the Agency) of any Mortgage Loans held by the Trustee
<br />under this Resolution, and the Trustee and the Paying Agent shall pay over or
<br />deliver to the Agency all moneys or securities held by them pursuant to this
<br />Resolution which are not required for the payment or redemption of Bonds or
<br />coupons not theretofore surrendered for such payment or redemption.
<br />
<br />(C) In case any of the Bonds are to be redeemed on any date
<br />prior to their maturity, the Agency shall have given to the Trustee in form
<br />satisfactory to it, irrevocable instructions to publish, as provided in
<br />Article IV of this Resolution, notice of redemption on said date of such Bonds,
<br />
<br />In the event that said Bonds are not by their terms subject to
<br />redemption within the next succeeding sixty (60) days, the Agency shall have
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