Common use of ACQUISITION OF EXISTING PROPERTY Clause in Contracts

ACQUISITION OF EXISTING PROPERTY. The Borrower hereby represents and warrants for the benefit of the Issuer, the Trustee and the registered owners of the Bonds that a portion of the Proceeds of the Bonds in the amount of $1,986,000 will be used to pay the cost of acquisition of real property (other than land or any interest therein) the first use of which will not be pursuant to the acquisition with the Proceeds of the Bonds. The Owner will meet the rehabilitation requirements of Section 147(d)(3) through the rehabilitation and improvement of the Facilities within the two-year period following the later of the Date of Issuance or the date the existing property is acquired. An amount equal to $1,307,137 will be used to accomplish such rehabilitation and improvement, which amount is greater than the 15% of the amount of Bond proceeds used to acquire such existing property.