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13068487v2 <br /> <br /> <br /> 19 <br /> <br />Section 4.08 Investment of Funds; Credits. Moneys on deposit to the credit of any Fund <br />maintained under the Indenture shall be invested by the Trustee, upon written request by the <br />Authorized Corporation Representative to the Trustee, in Qualified Investments. The Corporation <br />acknowledges that the investments it authorizes in its written investment directions must be <br />authorized by the Act. Investments permitted under this Section may be purchased through or from <br />the Trustee or any of its affiliates. Investments so purchased shall be deemed at all times to be a <br />part of the respective Fund, but may from time to time be sold or otherwise converted into cash, <br />whereupon the proceeds derived from such sale or conversion shall be credited to the respective <br />Fund. Except as hereinafter provided in this Section 4.08, any interest or profit shall be credited to <br />the respective Fund. The Trustee shall redeem or sell any investments so purchased, whenever it <br />shall be necessary to do so in order to provide moneys to meet any payment from any Fund. Neither <br />the Trustee nor the Issuer shall be liable for any loss resulting from any such investment, nor from <br />failure to preserve rights against endorsers or other prior parties to instruments evidencing any <br />such investment. The Corporation acknowledges that the investments it authorizes in its written <br />investment directions are required to be limited as to amount and yield of investment in such <br />manner that no part of the outstanding Bonds shall be deemed “arbitrage bonds” under Section <br />148 of the Internal Revenue Code and regulations thereunder. <br />The Trustee will furnish the Corporation with periodic account statements as provided <br />herein that include detail for all investment transactions made by the Trustee hereunder. The <br />Corporation acknowledges that regulations of the Comptroller of the Currency grant the <br />Corporation the right to receive brokerage confirmations of the securities transactions as they <br />occur. The Corporation specifically waives such notification to the extent permitted by law and <br />the Corporation acknowledges that it will receive periodic cash transaction statements that will <br />detail all investment transactions. <br />Notwithstanding any other provision hereof or of the Indenture, earnings credited to the <br />Reserve Fund shall be transferred to the Bond Fund and shall serve as a credit against the obligation <br />of the Borrower to make Loan Repayments under Section 4.02(a) hereof, no less frequently than <br />semiannually on June 1 and December 1 of each year; provided, however, that no such transfer <br />shall be made if the effect thereof would be to cause the amount on hand in the Reserve Fund to <br />be less than the Reserve Requirement, as computed in accordance with Section 5.03 of the <br />Indenture. <br /> <br />[The balance of this page is intentionally left blank.]