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(iii) The Trustee shall deposit into the specified accounts and sub
accounts of the Project Fund all amounts as specified in Section 4.1 above or as otherwise directed
by the Borrower. The Trustee shall receive and deposit into the Project Fund Account amounts
received as future installments of funds required to be furnished by the [Tax Credit Investor]
collectively, the 99.90% member of the Borrower (the “Tax Credit Investor”) in accordance with
the provisions of the Amended and Restated Operating Agreement dated as of July 1, 2026
between the Borrower and the Tax Credit Investor (the “Operating Agreement”).
(iv) The rehabilitation, renovation, construction, improvements and
equipping of the Project is anticipated to commence in August of 2026 and is expected to be
completed in approximately seventeen (17) months after Closing, near the end of January 31, 2028.
Thus, amounts in the Project Fund are reasonably expected to be applied to costs of the Project
within three years of the date hereof. The Borrower has incurred or expects to incur within six
months of the date hereof substantially binding obligations to third parties to expend at least five
percent (5%) of the Net Sale Proceeds for such purposes. The allocation of the Net Sale Proceeds
(and investment proceeds thereon) to expenditures for the aforementioned purposes will proceed
with due diligence to the completion thereof with respect to the Project. Therefore, Net Sale
Proceeds may be invested at an unrestricted yield for a period not to exceed three years from the
date hereof and, thereafter, shall be invested at a yield not in excess of the yield on the Bonds plus
0.125%. Investment earnings on obligations acquired with such proceeds may be invested at an
unrestricted yield for a period not exceeding three years from the date hereof or one year from the
receipt thereof, whichever period ends later and, thereafter, shall be invested at a yield not in excess
of the yield on the Bonds plus 0.125%.
(c) Cost of Issuance Fund. No Sale Proceeds are expected to be deposited into
the Cost of Issuance Fund. Amounts in the Costs of Issuance Fund, if any, shall be used to pay
Costs of Issuance of the Bonds. Any amounts remaining on deposit in the Costs of Issuance Fund
30 days after the Issue Date shall be returned to or at the direction of the Borrower. The Cost of
Issuance Fund is not pledged to payment of the Bonds and is not reasonably expected to be used
to pay principal or interest thereon. Amounts in the Costs of Issuance Fund may be invested
without yield restriction.
(d) Bond Fund.
(i) The Bond Fund (and the Negative Arbitrage Account and
Remarketing Proceeds Account therein) and the moneys and Eligible Investments therein shall be
used solely and exclusively for the payment of debt service as it becomes due on the October 1,
2026 interest payment date, and on each April 1 and October 1 thereafter and on the Initial
Mandatory Tender Date when Bonds are outstanding, and Bond Service Charges, if any, as they
become due and at stated maturity, or upon voluntary redemption, mandatory redemption or
acceleration.
(ii) The Bond Fund (other than the Negative Arbitrage Account and the
Remarketing Proceeds Account) will be used primarily to achieve a proper matching of the
revenues of the Borrower and debt service on the Bonds within each Bond Year. Amounts
deposited in the Bond Fund (other than the Negative Arbitrage Account and the Remarketing
Proceeds Account) will be depleted at least once each Bond Year except for a reasonable carryover
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