Application of Funds in Debt Service Reserve Accounts. If, following the application of monies on deposit in the Indenture Securities Account in accordance with Section 4.3, amounts are due and owing in respect of principal of or premium, if any, or interest on any Securities for whose benefit a Debt Service Reserve Account was established and created, in accordance with the Series Supplemental Indenture establishing such Securities, the Trustee shall, in the following order of priority: first, apply monies then on deposit in such Debt Service Reserve Account; second, draw upon any Reserve Account Letter of Credit on deposit in such Debt Service Reserve Account pursuant to Section 4.6(d) in an amount up to the Available Amount thereunder and apply the monies in respect thereof; and third, call upon any Southern Guaranty on deposit in such Debt Service Reserve Account pursuant to Section 4.6(d) in an amount up to the Available Amount thereunder and apply the monies in respect thereof, in each case, directly to the payment (to the extent necessary) of such amounts due and owing in respect of such Securities; provided, however, that, prior to a Trigger Event, if an Event of Default has occurred and is then continuing, the Trustee shall provide notice thereof to the Collateral Agent, and the Collateral Agent shall (to the extent necessary), in the following order of priority, transfer monies on deposit in the Distribution Account, the Subordinated Fee Account and the Subordinated Debt Account (including then Available Amounts under any Reserve Account Security on deposit therein) in accordance with and subject to Sections 3.8, 3.7 and 3.6, respectively, of the Intercreditor Agreement, to the Trustee for application to the payment of such amounts due and payable in respect of such Securities, prior to the application of monies pursuant to clauses first, second and third above.
