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amount, if any, not to exceed the greater of (i) the earnings on the Bond Fund (other than the
Negative Arbitrage Account and the Remarketing Proceeds Account) for the immediately
preceding Bond Year, or (ii) one-twelfth of the debt service due on the Bonds for the immediately
preceding Bond Year. To the extent the Bond Fund (other than the Negative Arbitrage Account
and the Remarketing Proceeds Account) functions as described in the preceding sentence, it is
treated for federal tax purposes as a "bona fide debt service fund." Amounts deposited in the
Bond Fund (other than the Negative Arbitrage Account and the Remarketing Proceeds Account)
may be invested at an unrestricted yield for a period not to exceed 13 months from the date of
initial deposit. Thereafter, such amounts shall be invested at a yield not in excess of the yield on
the Bonds plus 0.001%.
(iii) On the Issue Date, $0 will be deposited into the Negative Arbitrage
Account Earnings from a source other than Sale Proceeds, and earnings on the Project Fund and
the Collateral Fund are expected and will be transferred into the Negative Arbitrage Account on a
regular basis after Closing. All amounts in the Negative Arbitrage Account are reasonably
expected to be used to pay interest on the Bonds from the Issue Date to the Mandatory Tender
Date. Amounts in the Negative Arbitrage Account shall not be invested at a yield in excess of the
yield on the Bonds.
(e) Collateral Fund. Proceeds of the Mortgage Loan and the Equity Bridge
Loan made to the Borrower by the Mortgage Lender equity contributions made to the Borrower
by the Investor Member, respectively, and the Equity Bridge Lender will be deposited into the
Collateral Fund, if such funds are available, prior to the disbursement of funds from the Project
Fund to pay costs of the Project in an amount equal to the amount to be disbursed from the Project
Fund, and will serve as cash collateral for the Bonds. Once the Trustee receives amounts from the
Mortgage Lender or the Investor Member Equity Bridge Lender for deposit to the Collateral Fund,
it will transfer such amount to the Project Fund, release a like amount of funds from the Project
Fund to be used to pay costs of the Project and will allocate a portion of the Eligible Investments
to the Collateral Fund pursuant to Section 4.04 of the Indenture. The Collateral Fund is pledged
to secure the payment of the Bonds. Amounts in the Collateral Fund shall not be invested at a
yield in excess of the yield on the Bonds.
(f) Expense Fund. No Sale Proceeds shall be deposited into the Expense Fund.
The Expense Fund is not pledged to payment of the Bonds and is not expected to be used to pay
principal or interest thereon. Amounts in the Expense Fund may be invested without yield
restriction.
(g) Rebate Fund. No Sale Proceeds shall be deposited into the Rebate Fund.
The Rebate Fund is not pledged to payment of the Bonds and is not expected to be used to pay
principal or interest thereon. Amounts in the Rebate Fund may be invested without yield
restriction.
(h) Capitalized Interest Account. Deposits to the Capitalized Interest Account,
if created, and the recipient of funds, if any, shall be made on the dates and in the amounts specified
in the Indenture. The Trustee shall transfer funds from the Capitalized Interest Account to the
Project Loan to pay interest on the Bonds accruing up to and including the completion of the
Project. The Trustee shall transfer any surplus proceeds remaining in the Capitalized Interest
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