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(2) the Project Fund designated “Project Fund”;
(3) the Collateral Fund designated “Collateral Fund”;
(4) the Costs of Issuance Fund designated “Costs of Issuance Fund”;
(5) the Rebate Fund designated “Rebate Fund”; and
(b) On the Closing Date, proceeds of the sale of the Bonds (including without limitation,
premium, if any, and interest accrued thereon) in the amount of $[______________] shall be deposited by
the Trustee to the Project Fund. In addition, the Trustee shall cause, from proceeds of the Underwriter’s
Advance, the Initial Deposit to be deposited to the Interest Account of the Bond Fund.
Section 5.02 Application of Loan Payments. So long as there are any Outstanding Bonds, any
payments made by the Borrower pursuant to the Promissory Note and the Loan Agreement shall be paid on
each Loan Payment Date directly to the Trustee and deposited into the Bond Fund, to be used to pay the
interest and principal (if any) on the Bonds on the next succeeding Interest Payment Date; provided that so
long as there are amounts available therefor, for purposes of paying interest on the Loan when due the
Trustee shall debit the Interest Account in the amount of interest due on the Bonds on each Interest Payment
Date and transfer the same to the Bond Fund to pay interest due on the Bonds on each Interest Payment
Date; and provided further that so long as there are amounts available therefor, for purposes of making
principal payments on the Loan when due the Trustee shall debit the Collateral Fund and transfer the same
to the Bond Fund to pay the principal of the Bonds on the date set for redemption of the Bonds or payment
of the Bonds on the Maturity Date.
Section 5.03 Disbursements from the Project Fund.
(a) Requisitions. Subject to the provisions of this subsection (a) and subsection (b) below, the
Trustee shall make disbursements from the Project Fund to pay Project Costs only upon the receipt of a
written request of the Borrower in accordance with the Disbursing Agreement, the Loan Agreement, and
this Indenture substantially in the form attached as Exhibit E to the Loan Agreement (a “Disbursement
Request”).
(b) Project Fund. When the Trustee receives a Disbursement Request for a disbursement from
the Project Fund in accordance with the provisions of subsection (a) above, Sections 3.4 and 3.5 of the Loan
Agreement, and the Disbursing Agreement, subject to the following paragraph, the Trustee shall confirm
that Available Money equal to or greater than the sum of (1) the amount set forth in the Disbursement
Request and (2) all prior disbursements made, is on deposit in the Collateral Fund and is at least equal to
the then Outstanding principal amount of the Bonds. Upon confirmation of the items above, the Trustee
shall thereafter disburse the funds from the Project Fund to pay Project Costs in the requested amount
pursuant to the Disbursement Request directly to (i) the FHA Lender, or at the direction of the FHA Lender
as provided in Section 3.5(d) of the Loan Agreement, to the extent the corresponding deposit of Available
Money to the Collateral Fund was made by or at the direction of the FHA Lender (as confirmed in the
Disbursement Request); or (ii) the Borrower (or any other party designated in the Disbursement Request)
to the extent the corresponding deposit of Available Money to the Collateral Fund was made by or at the
direction of the Borrower or such other party. Any interest earnings on the Project Fund shall be credited
to the Interest Account of the Bond Fund.
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