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AKTICLE III
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<br />ACQUISITION AND CONSTRUCTION OF PROJECT
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<br /> Section 3. I. .Agreement to Construct the Project. Subject to the provisions of Section
<br />3.6, the Landlord hereby makes, constitutes and appoints the Tenant its agent for the purposes of
<br />(1) constructing, acquiring, equipping, renovating, expanding, bettering, installing and otherwise
<br />completing the Project, or causing the same tO occur, and, subject to the terms and conditions of
<br />this Lease, which terms and conditions the Landlord determines to be necessary, desirable and
<br />proper, of (2) providing for and making all decisions with respect to such construction,
<br />equipping, acquisition, installation, and completion of the Project. The Tenant hereby accept.s
<br />such agency and agrees to act and do all things on behalf of the Landlord, to perform all acts and
<br />agreements of the Landlord hereinabove described in this section and to bring any actions or
<br />proceedings against any person which the 'Tenant might bring with respect thereto as the Tenant
<br />shall deem proper; and the Tenant further agrees that it will, in accordance with the requirements
<br />set forth in this Article III, cause the acquisition, construction; equipping, installation, and
<br />completion of the Project. The parties hereto agree that, as between the Landlord and the
<br />Tenant, the Tenant shall have the sole fight of possession and use of the Project for the purpose
<br />of causing the acquisition, construction, installation, completion, operation and maintenance of
<br />the Project.
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<br /> Subject to the provisions in Section 12.2, this appointment of the Tenant as agent, and ali
<br />authority hereby conferred, are granted and conferred irrevocably untiI all activities in
<br />connection with the acquisition, construction, equipping, installation, operation and maintenance
<br />of the Project and said agency shall not be terminated prior thereto by act of the Landlord or of
<br />the Tenant. The Tenant agrees that title to Tenant hnterest in any equipment, fixtures or other
<br />personal property f'manced by the Bonds which are to be affixed to the Project to be acquked
<br />after issuance of Bonds shall pass to the Landlord at the time such'equipment, fixtures or other
<br />personal property is delivered to the Project. The Landlord hereby assigns to the Tenant all
<br />warranties and guarantees of all contractors, subcontmctors,.suppliers, architects and engineers
<br />for the fin-nishing of labor, materials or equipment or supervision or design in connection with
<br />.the Project Costs and any rights or causes of action arising from or against.any of the foregoing.'
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<br /> The Tenant agrees to cause the Project and ail other facilities and equipment necessary in
<br />connection therewith to be substantially acquired, constructed and installed on.or before
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<br /> Section 3.2. Agreement to Issue Bonds; Application of Bond Proceeds. In order to
<br />provide funds for payment of Project Costs, the Landlord will issue and deliver to the initial
<br />purchaser thereof the Series 2005A Bonds and the Landlord will deposit the proceeds of the
<br />Series 2005A Bonds in the Bond Fund, the Reserve Fund and the Construction Fund as provided
<br />in the Indenture.
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<br /> Section 3.3. Disbursements from the Construction Fund. The Landlord'has, in the
<br />Indenture, authorized and directed the Trustee to use the moneys in the Construction'Fund to
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