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The Trustee shall transmit to the Paying Agent, as appropriate, from money on deposit in the Bond
Fund, amounts sufficient to make timely payments of Bond Debt Service Charges on the Bonds. The Issuer
authorizes and directs the Trustee to cause withdrawal of money from the Bond Fund which is available for
the purpose of paying, and is sufficient to pay, Bond Debt Service Charges on the Bonds as they become
due and payable, for the purposes of paying or transferring money to the Paying Agent which is necessary
to pay such Bond Debt Service Charges. Amounts credited to or on deposit in the Interest Account shall be
transferred to the Bond Fund on each Loan Payment Date in order to provide for the payment of Bond Debt
Service Charges on the next succeeding Bond Payment Date. To the extent available, the Trustee shall
transfer money on deposit in the Remarketing Proceeds Account to the Bond Fund on the Mandatory Tender
Date for the purpose of paying the purchase price of the Bonds.
In the event that amounts on deposit in the Bond Fund on any Loan Payment Date are insufficient
to make the payment of Bond Debt Service Charges due on the next succeeding Bond Payment Date, the
Trustee shall transfer funds in the following order to the Bond Fund and use such funds, together with
amounts then on deposit in the Bond Fund, to pay the Bond Debt Service Charges due on the next
succeeding Bond Payment Date:
(1) first, from amounts on deposit in the Interest Account or the Remarketing Proceeds
Account of the Bond Fund, as applicable;
(2) second, from amounts on deposit in the Collateral Fund; and
(3) third, from amounts on deposit in the Project Fund.
Investment of Special Funds
(a) On the Closing Date, money on deposit in the Project Fund will be held by the Trustee
uninvested until disbursed to the Borrower on the Closing Date in accordance with an approved
Disbursement Request.
(b) Any amounts deposited in the Special Funds (including amounts, if any, remaining on
deposit in the Project Fund after the Closing Date) shall be invested at all times in Eligible Investments as
directed in paragraph (c) below or otherwise in writing by the Authorized Borrower Representative;
provided, however, in the absence of written instructions from the Authorized Borrower Representative to
the Trustee, amounts in the Special Funds shall be invested in money market funds described in subsection
(b) of the definition of Eligible Investments.
(c) The Trustee has been directed to purchase, on the Closing Date, a portfolio of Eligible
Investments in amounts and maturing on such dates as will provide sufficient money to pay interest on the
Bonds when due and the purchase price of the Bonds on the Mandatory Tender Date, in accordance with a
Cash Flow Projection prepared by The Arbitrage Group, Inc., in connection with the initial issuance and
delivery of the Bonds, with respect to amounts on deposit in the Interest Account of the Bond Fund, the
Collateral Fund, and the Project Fund. The Trustee shall not sell or otherwise dispose of such Eligible
Investments unless the Trustee and the Rating Agency have received a new Cash Flow Projection and
written directions from the Borrower. The Trustee is permitted to purchase, sell or exchange Eligible
Investments only in accordance with such Cash Flow Projection and may release from the Interest Account
of the Bond Fund the amount, if any, set forth in such Cash Flow Projection to or at the written direction of
the Borrower.
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