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Bonds to become arbitrage bonds under Section 148 of the Code. Further the Trustee shall have no other
obligation or responsibility whatsoever in connection with any federal or state tax-exempt status of the
Bonds or interest thereon.
Collateral Fund
Pursuant to the provisions described under the caption “Disbursements from the Project Fund”
above, there shall be deposited in the Collateral Fund Available Money in such amounts as may be
necessary to allow the Trustee to transfer funds from the Project Fund, subject to reallocation as provided
in the Indenture, upon the Trustee’s receipt of a Disbursement Request from the Borrower. Money in the
Collateral Fund shall be invested as directed in writing by the Borrower in Eligible Investments.
The Collateral Fund shall only be used and applied for, and irrevocably committed to, the payment
of (a) the Bond Debt Service Charges on the Bonds which are due and payable on any Interest Payment
Date, Maturity Date, Mandatory Tender Date with respect to Bonds that are not remarketed, or any date the
Bonds are called for redemption prior to maturity; (b) the Bond Debt Service Charges on the Bonds as and
when due at any other Bond Payment Date; and (c) the purchase price of the Bonds on the Mandatory
Tender Date, to the extent amounts on deposit in the Remarketing Proceeds Account and the Interest
Account of the Bond Fund are insufficient therefor. Any interest earnings on the Collateral Fund shall be
credited to the Interest Account of the Bond Fund.
Costs of Issuance Fund
The Trustee shall use money on deposit to the credit of the Costs of Issuance Fund to pay the costs
of issuance of the Bonds on the Closing Date or as soon as practicable thereafter in accordance with written
instructions to be given to the Trustee by the Issuer based on certifications of the Borrower, as set forth in
a certificate of the Borrower delivered to the Trustee on the Closing Date or as otherwise directed by the
Borrower, upon delivery to the Trustee of appropriate invoices for such expenses. Amounts on deposit in
the Costs of Issuance Fund shall also be used by the Trustee to pay the Remarketing Expenses, as directed
in writing by the Borrower on the Remarketing Date. Investment earnings on amounts on deposit in the
Costs of Issuance Fund shall be retained in such fund. Amounts remaining on deposit in the Costs of
Issuance Fund sixty (60) days after the Closing Date, other than amounts deposited pursuant to the
Indenture, shall be deposited to the Bond Fund. Amounts deposited in the Costs of Issuance Fund pursuant
to the Indenture and remaining on deposit therein thirty (30) days after the Remarketing Date shall be
deposited to the Bond Fund. Upon such final disbursement, the Trustee shall close the Costs of Issuance
Fund.
Defaults; Events of Default
The occurrence of any of the following events is defined as and declared to be and to constitute an
Event of Default under the Indenture:
(a) Payment of any interest on any Bond shall not be made when and as that interest
shall become due and payable;
(b) Payment of the principal of any Bond shall not be made when and as that principal
shall become due and payable, whether at stated maturity, upon acceleration or otherwise;
(c) Failure by the Issuer to observe or perform any other covenant, agreement or
obligation on its part to be observed or performed contained in the Indenture or in the Bonds, which
failure shall have continued for a period of thirty (30) days after written notice, by registered or
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