14-20 Cedar Glen Bond Ordinance Addendums

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purpose of paying, and are sufficient to pay, the principal of the Bonds as they become due and payable(whether at stated maturity or upon prior redemption or acceleration), for the purposes of paying or transferring moneys to the Paying Agents which are necessary to pay such principal. As provided in the Agreement, and as evidenced and to be evidenced by the Note, Bond Service Charges shall be payable, as they become due, (i) in the first instance from the moneys on deposit in the Interest Payment Account and Principal Payment Account of the Bond Fund, (ii) next from amounts on deposit in the Assignment Fund and transferred as necessary to the Bond Fund, and (iii) thereafter from amounts on deposit in the Project Fund and transferred as necessary to the Bond Fund. Section 5.06. Investment of Special Funds and Rebate Fund. Except as otherwise set forth in this Section, moneys in the Special Funds and the Rebate Fund shall be invested and reinvested by the Trustee in Eligible Investments at the oral or written direction (promptly confirmed in writing, if oral) of the Borrower. At no time shall the Borrower direct that any funds constituting gross proceeds of the Bonds be used in any manner as would constitute failure of compliance with Section 148 of the Code. Amounts on deposit in the Bond Fund and the Assignment Fund shall be invested in Eligible Investments that have a maturity date (or are redeemable at par) not later than the date when such funds are needed to pay Bond Service Charges on the Bonds. Amounts on deposit in the Project Fund shall be invested in Eligible Investments. Investment earnings from Eligible Investments shall be invested in Eligible Investments that have a maturity date (or are redeemable at par) not later than the date when such funds are needed to pay Bond Service Charges on the Bonds. All investment earnings and gains resulting from the sale of, or income from, any investment made from moneys credited to the Special Funds shall be credited to and become part of the Bond Fund. Section 5.07. Moneys to be Held in Trust. Except where moneys have been deposited with or paid to the Trustee pursuant to an instrument restricting their application to particular Bonds, all moneys required or permitted to be deposited with or paid to the Trustee or any Paying Agent under any provision of this Indenture or the Note, and any investments thereof, shall be held by the Trustee or that Paying Agent in trust. Except for moneys held by the Trustee pursuant to Section 5.08 hereof, all moneys described in the preceding sentence held by the Trustee or any Paying Agent shall be subject to the lien hereof while so held. Section 5.08. Nonpresentment of Bonds. In the event that any Bond shall not be presented for payment when the principal thereof becomes due, or a check or draft for interest is uncashed, if moneys sufficient to pay the principal then due of that Bond or of such check or draft shall have been made available to the Trustee for the benefit of its Holder, all liability of the Issuer to that Holder for such payment of the principal then due of the Bond or of such check or draft thereupon shall cease and be discharged completely. Thereupon, it shall be the duty of the Trustee to hold those moneys, without liability for interest thereon, in a separate account in the Bond Fund for the exclusive benefit of the Holder, who shall be restricted thereafter exclusively to those moneys for any claim of whatever nature on its part under this Indenture or on, or with - 33 -