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Loan, the Agency's share of Residual Receipts shall be applied as follows: 60% to the Note Amount due hereunder and 40% to repay the City Loan). Annual Residual Receipts payments shall be paid by the Borrower and shall be delivered on or before one hundred fifty (150) days after the end of the Borrower's fiscal year, of each year during the term of this Note first following the date the final Certificate of Occupancy is issued for the Project, until the Note Amount and all unpaid interest thereon has been repaid in full. Any remaining portion of the Note Amount shall be due and payable on the earlier to occur of (a) the fifty-sixth (56th) anniversary of the date the final Certificate of Occupancy is issued for the Project; or (b) December 31, 2068. Notwithstanding the foregoing, the full Note Amount may be accelerated as set forth in Section 14 hereof. On or before one hundred fifty (150) days after the end of the Borrower's fiscal year, of each year commencing in the year after the issuance of the Release of Construction Covenants for the Project, the Borrower shall annually provide the Agency an audited financial statement for the Project and a residual receipts report in a form provided by the Executive Director, which shall describe in detail the Annual Project Revenue, Debt Service, Operating Expenses, Capital Replacement Reserve (including deposits therein and expenditures therefrom), and Residual Receipts for that year for the Project. The Borrower shall also submit to the Agency, on or before one hundred fifty (150) days after the end of the Borrower's fiscal year, of each year commencing in the year of the issuance of the Release of Construction Covenants for the Project, annual audited financial statements with respect to the Project that have been reviewed by an independent certified public accountant, together with an expressed written opinion of the certified public accountant that such financial statements present the financial position, results of operations, and cash flows fairly and in accordance with generally accepted accounting principles. 4. Definitions. As used herein, "Annual Project Revenue" shall mean all gross income and all revenues of any kind from the Project in a calendar year, including without limitation, rent, Section 8 housing assistance payments, if any, late charges, vending machine income, and any other revenues of whatever kind or nature from the Project, except that security deposits (until applied), interest on security deposits and required reserves, sales proceeds, and the proceeds of loans, refinancings, condemnation, insurance claims, and partner capital contributions, shall not be considered Annual Project Revenue. As used herein, "Applicable Federal Rate" means the interest rate set by the United States Treasury from time to time for the purpose of determining applicable Low Income Housing Tax Credit interest rates published by the Internal Revenue Service in monthly reserve rulings. As used herein, "Capital Replacement Reserve" shall mean a reasonably required reserve not to exceed $250 per unit per year (or such greater amount as may be required by lenders or investors for the Project, to be used for the purpose of replacing capital items. As used herein, "Debt Service" means regularly scheduled payments of principal and interest made in a calendar year pursuant to the Senior Loan obtained for the development and ownership of the Project which has been approved by the Agency pursuant to the Agreement, and which is senior in lien priority to the Agency Loan, but excluding payments made pursuant to this Note, payments made under the City Loan, and payments made under the NSP Loan. F-2 DOC SOC/ 1469583 v5/200272-0003