Common use of Principal Reserve Fund Clause in Contracts

Principal Reserve Fund. There shall be deposited into the Principal Reserve Fund that portion of the monthly payments made by the Borrower in accordance with the Principal Reserve Schedule and designated for deposit to the Principal Reserve Fund as required by the Reimbursement Agreement. Any interest earned on or profits realized from amounts on deposit in the Principal Reserve Fund shall be deposited into the Principal Reserve Fund and, provided that, to Trustee’s actual knowledge, there is no deficiency in the Principal Reserve Fund, the Administration Fund or the Rebate Fund, and that no Event of Default exists under any of the Bond Documents, such interest or profits shall be paid to the Borrower on the Interest Payment Date next succeeding receipt of such interest or profits by the Trustee. In addition, remarketing proceeds relating to Purchased Bonds shall be deposited in the Principal Reserve Fund and used to reimburse the Credit Facility Provider in an amount equal to the amount of any Liquidity Advance paid to the Trustee to purchase Bonds on any Settlement Date. At the direction of the Credit Facility Provider after the Conversion, amounts on deposit in the Principal Reserve Fund shall be used by the Trustee to pay any amounts required to be paid by the Borrower under any of the Bond Mortgage Loan Documents or the Reimbursement Agreement, including without limitation any amounts required to be paid to Freddie Mac or to pay any other sum as directed in writing by Freddie Mac. (a) From and after the Conversion Date, on each Reset Adjustment Date, Variable Rate Adjustment Date and on the Fixed Rate Adjustment Date, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(iv). (b) From and after the Conversion Date, on the first day of the month in which an Interest Payment Date falls during a Reset Period or a Fixed Rate Period, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(v). (c) From and after the Conversion Date, on any Interest Payment Date, to the extent of any deficiency in the Bond Fund, to the extent moneys then available in accordance with Section 4.03(f) in the General Account of the Revenue Fund, the Administration Fund and the Redemption Fund are insufficient to make up such deficiency, at the direction of the Credit Facility Provider amounts on deposit in the Principal Reserve Fund shall be transferred to the Bond Fund in the amount of such deficiency. (d) Any amounts remaining in the Principal Reserve Fund after payment in full of the principal of and interest on the Bonds shall be applied as provided in Section 4.11 hereof.

Principal Reserve Fund. (a) There shall be deposited into the Principal Reserve Fund that portion of the monthly payments made by the Borrower in accordance with the Principal Reserve Schedule and designated for deposit to the Principal Reserve Fund as required by Payments in accordance with the Reimbursement Agreement. Any interest earned on or profits realized from amounts on deposit in the Principal Reserve Fund shall be deposited into the Principal Reserve Fund and, provided that, to Trustee’s actual knowledge, there is no that the Trustee has not received notice from the Servicer of a deficiency in the Principal Reserve Fund, the Hedge Fee Escrow or other Custodial Escrow Account, and there is no deficiency in the Administration Fund or the Rebate Fund, and the Trustee has not received notice that no Event of Default a default exists under any of the Bond Mortgage Loan Documents, such interest or profits shall be paid to the Borrower on the Interest Payment Date next succeeding receipt of such interest or profits by the Trustee. In addition, there shall be deposited into the Principal Reserve Fund remarketing proceeds relating to Purchased Bonds Bonds, which shall be deposited in the Principal Reserve Fund and used to reimburse the Credit Facility Provider in an amount equal to the amount of any Liquidity Advance paid to the Trustee to purchase Bonds on any Settlement Date. . (b) At the written direction of the Credit Facility Provider after the ConversionProvider, amounts on deposit in the Principal Reserve Fund shall be used by the Trustee to pay any amounts required to be paid by the Borrower under any of the Bond Mortgage Loan Documents or the Reimbursement AgreementDocument, including without limitation to pay any amounts required owed to be paid to Freddie Mac the Credit Facility Provider in connection with any loan purchased by the Credit Facility Provider and secured by the Project, or to pay any other sum as directed amount agreed to in writing by Freddie Macthe Borrower and the Credit Facility Provider; provided that the amounts on deposit in the Principal Reserve Fund shall, upon the occurrence of an event of default under any Bond Mortgage Loan Document, be used in any manner and for any purpose specified by the Credit Facility Provider. (ac) From At the written request of the Borrower, the Credit Facility Provider, in its sole and after absolute discretion, may (i) consent to the Conversion Daterelease of all or a portion of the amounts on deposit in the Principal Reserve Fund to the Borrower (in which case the Trustee shall release such amounts to the Borrower, provided that if, in the judgment of the Rebate Analyst, the amount on deposit in the Rebate Fund at such time is less than the amount required under Section 4.12 to be rebated to the United States Treasury, then prior to any such release to the Borrower, any amounts on deposit in the Principal Reserve Fund (up to the amount of such deficiency) shall be transferred to the Rebate Fund) and/or (ii) reduce or no longer require deposits to the Principal Reserve Fund. (d) On each Reset Adjustment Date, Variable Rate Adjustment Date and on the Fixed Rate Adjustment Date, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(iv). (be) From and after the Conversion Date, on On the first day of the month in which an Interest Payment Date falls during a Reset Period or a Fixed Rate Period, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(v). (cf) From and after the Conversion Date, on On any Interest Payment Date, to the extent of any deficiency in the Bond Fund, to the extent moneys money then available in accordance with Section 4.03(f4.03(d) in the General Account of the Revenue Fund, the Administration Fund and the Redemption Fund are insufficient to make up such deficiency, at the direction of the Credit Facility Provider Provider, amounts on deposit in the Principal Reserve Fund shall be transferred to the Bond Fund in the amount of such deficiency. (dg) Any amounts remaining in the Principal Reserve Fund after payment in full of the principal of and interest on the Bonds shall be applied as provided in Section 4.11 hereof.

Principal Reserve Fund. There shall be deposited into the Principal Reserve Fund that portion of the monthly payments made by the Borrower in accordance with the Principal Reserve Schedule and designated for deposit to the Principal Reserve Fund as required by the Reimbursement Agreement. Any interest earned on or profits realized from amounts on deposit in the Principal Reserve Fund shall be deposited into the Principal Reserve Fund and, provided that, to Trustee’s actual knowledge, there is no deficiency in the Principal Reserve Fund, the Administration Fund or the Rebate Fund, and that no Event of Default exists under any of the Bond Documents, such interest or profits shall be paid to the Borrower on the Interest Payment Date next succeeding receipt of such interest or profits by the Trustee. In addition, remarketing proceeds relating to Purchased Bonds shall be deposited in the Principal Reserve Fund and used to reimburse the Credit Facility Provider in an amount equal to the amount of any Liquidity Advance paid to the Trustee to purchase Bonds on any Settlement Date. At the direction of the Credit Facility Provider after the Conversion, amounts on deposit in the Principal Reserve Fund shall be used by the Trustee to pay any amounts required to be paid by the Borrower under any of the Bond Mortgage Loan Documents or the Reimbursement Agreement, including without limitation any amounts required to be paid to Freddie Xxxxxxx Mac or to pay any other sum as directed in writing by Freddie Xxxxxxx Mac. (a) From and after the Conversion Date, on each Reset Adjustment Date, Variable Rate Adjustment Date and on the Fixed Rate Adjustment Date, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(iv). (b) From and after the Conversion Date, on the first day of the month in which an Interest Payment Date falls during a Reset Period or a Fixed Rate Period, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(v). (c) From and after the Conversion Date, on any Interest Payment Date, to the extent of any deficiency in the Bond Fund, to the extent moneys then available in accordance with Section 4.03(f) in the General Account of the Revenue Fund, the Administration Fund and the Redemption Fund are insufficient to make up such deficiency, at the direction of the Credit Facility Provider amounts on deposit in the Principal Reserve Fund shall be transferred to the Bond Fund in the amount of such deficiency. (d) Any amounts remaining in the Principal Reserve Fund after payment in full of the principal of and interest on the Bonds shall be applied as provided in Section 4.11 hereof.

Principal Reserve Fund. There The Borrowers agree that as a condition to Fannxx Xxx's executing and delivering the Related Fannxx Xxx Collateral Agreement, the Borrowers shall fund, and replenish, the applicable Principal Reserve Fund with respect to each Floating Rate Bond Transaction as and when required by the Related Mortgage Note and this Agreement. The Borrowers acknowledge that the Related Mortgage Note for each Initial Bond Property provides that the obligation to fund the applicable Principal Reserve Fund shall commence on July 1, 2006, and that prior to such time, the Borrowers shall not be required to fund the such Principal Reserve Fund; provided, however, that, the commencement date of the Borrowers' obligation to fund the Principal Reserve Fund relating to each New Bond Property entering the Fannxx Xxx Xxxdit Facility as a Floating Rate Bond Transaction, shall be deposited determined by Fannxx Xxx in its discretion. The Borrowers agree that they shall replenish each Principal Reserve Fund by delivery to the Related Trustee the amount equal to any loss from the investment of amounts on deposit in such Principal Reserve Fund, as and when such loss is incurred and irrespective of the reason for such loss. The Borrowers acknowledge and agree that amounts on deposit in the Principal Reserve Fund with respect to each Mortgage Loan in a Floating Rate Bond Transaction shall be applied toward the mandatory redemption of the Related Bonds, and the corresponding reduction of amounts owed under the Related Mortgage Note, as and to the extent provided in the Related Indenture. The Borrowers further acknowledge and agree that, as provided in the Related Mortgage Note, the Mortgage Loan with respect to any Floating Rate Bond Transaction shall not be deemed to have been amortized by reason of deposits into the Principal Reserve Fund that portion of the monthly payments made by the Borrower in accordance with the Principal Reserve Schedule and designated for deposit respect to the such Mortgage Loan until such deposits have been withdrawn from such Principal Reserve Fund and applied to the redemption of the Related Bonds as required by provided in the Reimbursement AgreementRelated Indenture. Any interest earned on So long as no Event of Default or profits realized no Potential Event of Default has occurred and is continuing, investment income derived from amounts on deposit in the Principal Reserve Fund shall be deposited into the Principal Reserve Fund and, provided that, to Trustee’s actual knowledge, there is no deficiency in the Principal Reserve Fund, the Administration Fund or the Rebate Fund, and that no Event of Default exists under any of the Bond Documents, such interest or profits Funds shall be paid to the applicable Borrower on the Interest Payment Date next succeeding receipt of such interest or profits by the Trustee. In addition, remarketing proceeds relating to Purchased Bonds shall be deposited in the Principal Reserve Fund and used to reimburse the Credit Facility Provider in an amount equal to the amount of any Liquidity Advance paid to the Trustee to purchase Bonds on any Settlement Date. At the direction of the Credit Facility Provider after the Conversion, amounts on deposit in the Principal Reserve Fund shall be used by the Trustee to pay any amounts required to be paid by the Borrower under any of the Bond Mortgage Loan Documents or the Reimbursement Agreement, including without limitation any amounts required to be paid to Freddie Mac or to pay any other sum as directed in writing by Freddie Mac. (a) From and after the Conversion Date, on each Reset Adjustment Date, Variable Rate Adjustment Date and on the Fixed Rate Adjustment Date, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(iv). (b) From and after the Conversion Date, on the first day of the month in which an Interest Payment Date falls during a Reset Period or a Fixed Rate Period, amounts on deposit in the Principal Reserve Fund shall be used to reimburse the Credit Facility Provider in an amount equal to any Guaranteed Payment made by the Credit Facility Provider to the Trustee under the Credit Facility to redeem Bonds in Authorized Denominations pursuant to Section 3.01(b)(v). (c) From and after the Conversion Date, on any Interest Payment Date, to the extent of any deficiency in the Bond Fund, to the extent moneys then available in accordance with Section 4.03(f) in the General Account of the Revenue Fund, the Administration Fund and the Redemption Fund are insufficient to make up such deficiency, at the direction of the Credit Facility Provider amounts on deposit in the Principal Reserve Fund shall be transferred to the Bond Fund in the amount of such deficiency. (d) Any amounts remaining in the Principal Reserve Fund after payment in full of the principal of and interest on the Bonds shall be applied as provided in Section 4.11 hereof.by