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EXHIBIT "B" SPECIAL STIPULATIONS B -1 Required Repair Reserve. Section 1. Pledge of Reserve. As additional security for the payment of all sums due under the Note and the performance by Borrower of the Obligations, Borrower hereby pledges, assigns and grants to Lender a continuing perfected security interest in and to and a first lien upon, the "Required Repair Reserve Fund" and the "Required Repair Reserve ", as such terms are defined in this Special Stipulation; provided that, Lender shall make disbursements from the Required Repair Reserve in accordance with the terms of this Special Stipulation. Section 2. Deposits to the Reserve. (a) Deposit. Concurrently with the execution of this Security Instrument, Borrower shall deposit with Lender the sum of $15,325.00 (the "Deposit'). The Deposit represents one hundred twenty five percent (125 %) of the estimated cost to complete the Required Repairs (hereinafter defined). The Deposit shall hereinafter be referred to as the "Required Repair Reserve Fund ". (b) Required Repair Reserve. Lender shall deposit the Required Repair Reserve Fund, as received, in an account (the "Required Repair Reserve "). Borrower hereby acknowledges and confirms that (i) the Required Repair Reserve Fund shall not constitute a trust fund and may be commingled with other monies held by Lender; (ii) Lender or its designee shall have the sole right to make withdrawals from the Required Repair Reserve; and (iii) no interest or earnings on the Required Repair Reserve shall be payable to Borrower. Section 3. Disbursements from the Reserve. (a) Disbursements for Required Repairs Only. Lender shall make disbursements from the Required Repair Reserve to reimburse Borrower only for the costs of the repairs, replacements and improvements to the Property described in Exhibit "C" attached hereto and made a part hereof (collectively, the "Required Repairs ") in the manner provided in this Section 3. Lender shall, upon written request from Borrower and satisfaction of the requirements set forth in this Section 3 and Section 4 of this Agreement, disburse to Borrower amounts from the Required Repair Reserve to reimburse Borrower for the actual cost of each Required Repair (but not exceeding 125% of the original estimated cost of such Required Repair as set forth on Exhibit "C ") upon completion of such Required Repairs (or, upon partial completion in the case of Required Repairs made pursuant to Section 3(d)) as determined by Lender. In no event shall Lender be obligated to disburse funds from the Required Repair Reserve (i) if an Event of Default (hereinafter defined) exists or (ii) if the amount remaining in the Required Repair Reserve Fund after such disbursement (other than with respect to the final disbursement) would be less than 125% of the then current estimated cost of completing all remaining Required Repairs. (b) Request for Disbursement. Each request for disbursement from the Required Repair Reserve shall be in a form specified or approved by Lender and shall specify (i) the specific Required Repairs for which the reimbursement is requested, (ii) the quantity and price of each item purchased, if the Required Repair includes the purchase or replacement of specific items, (iii) the price of all materials (grouped by type or category) used in any Required Repair other than the purchase or replacement of specific items, and (iv) the cost of all contracted labor or other services applicable to each Required Repair for which such request for disbursement is made. With each request, Borrower shall certify that all Required Repairs the subject of the requisition have been GMACCM SLP DOT 8/98 B - 1 ATLd Isle, ebra s a ( ) - ( ) Grand Isle, Nebraska