Disbursements from the Loan Fund. Moneys in the Loan Fund shall be disbursed to the Borrower as a reimbursement of or paid directly to vendors to pay Project costs which shall include costs of acquisition, costs of construction, architect’s and engineer’s fees, payment of interim indebtedness of the Borrower incurred for Project costs, and all other necessary expenses incidental to the completion of the Project. Such expenditures shall be paid in accordance with and pursuant to written draw requests which shall be signed by one or more duly designated representatives of the Borrower (which designation shall be in writing and filed with the Trustee). In addition to the requirements of the Lease Agreement, draw requests shall specify:
(1) The number of the request for payment;
(2) The name of the person, firm or corporation to whom payment is to be made;
(3) The amount of the payment; and
(4) That the disbursement is for a proper expense of or pertaining to the Project. Upon receipt of each properly executed draw request and receipt of the Advance from the Purchaser, the Trustee shall issue its check upon the Loan Fund payable to the person, firm or corporation designated in the draw request. Issuer and Trustee agree that withdrawals from the Loan Fund shall be evidenced in a manner consistent with the Home Office Payment Agreement. Issuer and Trustee shall be fully protected in relying upon certifications of the Borrower and/or the Bondholder that deposits to and withdrawals from the Loan Fund were evidenced on the books and records of the Borrower and Bondholder in a manner consistent with the Home Office Payment Agreement and have no duty or obligation to confirm such consistency and compliance.
Disbursements from the Loan Fund. (a) Pursuant to Section 4.04 of the Indenture, moneys in the Loan Fund shall be immediately disbursed by the Trustee, on behalf of the Company, as follows:
(i) to sell to Mellon Bank, N.A., as trustee of the Series 1978 Refunding Trust Fund, cash in the Loan Fund in the sum of $14,300,000 in exchange for cash in the Series 1978 Refunding Trust Fund in the same amount; and
(ii) to sell to Pittsburgh National Bank, as trustee of the Series 1981 Refunding Trust Fund, cash in the Loan Fund in the sum of $42,000,000 in exchange for cash in the Series 1981 Refunding Trust Fund in the same amount.
(b) Cash received from the Series 1978 Refunding Trust Fund and the Series 1981 Refunding Trust Fund pursuant to subsection (a) hereof (which represent moneys of the Company theretofore deposited in such Refunding Trust Funds) shall belong to and be the sole property of the Company and may be used for any of its corporate purposes.
(c) Cash in the Series 1978 Refunding Trust Fund and in the Series 1981 Refunding Trust Fund shall be applied and expended solely for the purpose of refunding the Series 1978 Bonds and the Series 1981 Bonds, respectively, and as otherwise provided in the Series 1978 Escrow Deposit Agreement and the Series 1981 Escrow Deposit Agreement, as the case may be.
