14-20 Cedar Glen Bond Ordinance Addendums

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Section 5.03. Deposits to, Disbursements from and Records of Project Fund and Assignment Fund. On the Closing Date, the Trustee shall use moneys in the Project Fund and [$ ] of the amount deposited to the Interest Payment Account of the Bond Fund to purchase the Initial Investment and deposit such Initial Investment in the Project Fund. To the extent moneys are not otherwise provided to the Trustee, including moneys deposited into the Bond Fund or the Assignment Fund, the Trustee shall transfer from the Project Fund to the Bond Fund sufficient Available Money to make the necessary interest and principal payments on each Interest Payment Date without further written direction. Upon the receipt of requests for disbursement from the Project Fund and the receipt of installments of Collateral Funds, the Trustee shall concurrently take the following steps: (i) The Trustee shall deposit the Collateral Funds installment into the Assignment Fund; (ii) The Trustee shall allocate a portion of the Initial Investment on deposit in the Project Fund (based on the initial purchase price of the Initial Investment) equal to the amount of the installment of Collateral Funds deposited to the Assignment Fund; (iii) The Trustee shall transfer an amount of cash equal to the installment of Collateral Funds from the Assignment Fund to the Project Fund; and (iv) The Trustee shall disburse Bond proceeds from the Project Fund in an amount equal to the Collateral Funds installment to pay Project Costs in accordance with Section 3.4 of the Agreement. Each deposit into the Assignment Fund shall constitute an irrevocable deposit solely for the benefit of the Holders, subject to the provisions hereof. The Trustee shall cause to be kept and maintained adequate records pertaining to the Project Fund and all disbursements therefrom. If requested by the Issuer or the Borrower, after the Project has been completed and a certificate of payment of all costs is filed as provided in Section 5.04 hereof, the Trustee shall file copies of the records pertaining to the Project Fund and disbursements therefrom with the Issuer and the Borrower. When the aggregate principal amount on deposit in the Assignment Fund, together with the scheduled investment earnings thereon, equals the expected Bond Service Charges to be paid on the Bonds to and including the Maturity Date, the excess amounts shall be transferred upon receipt to the Residual Fund and used to pay Project Costs in accordance with Section 3.4 of the Agreement. Notwithstanding any provision of the Agreement or any other provision of this Indenture to the contrary, after the Closing Date the Trustee shall not disburse moneys from the Project Fund, other than to pay Bond Service Charges on the Bonds, unless and until the Trustee receives satisfactory evidence that Collateral Funds or other Available Money in an amount equal to or greater than the requested disbursement amount has been deposited in the Assignment Fund. Prior to making any disbursement, the Trustee shall verify that upon making the disbursement, the aggregate amount to be held in (i) the Assignment Fund and (ii) the Project - 31 -