05-27-2026 Council Packet - Laserfiche WebLink

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31 199386222v3 (D) the Direct Note Proceeds Account; (E) the Direct Note Capitalized Interest Account (containing a Direct Note Proceeds Subaccount and an Equity Subaccount); and (F) the Subordinate Debt Proceeds Account; (ii) the Funding Loan Fund; (iii) Replacement Reserve Fund; (iv) Tax and Insurance Escrow Fund; (v) Operating Reserve Fund; (vi) Negative Arbitrage Account; and (vii) Direct Note Payment Fund. (b) All the Accounts created by subsection (a) of this Section shall be held by the Fiscal Agent in trust for application only in accordance with the provisions of this Funding Loan Agreement. (c) The initial advance of the Funding Loan will be applied in accordance with the Closing Memorandum. Following the disbursements set forth in the Closing Memorandum, the Fiscal Agent shall receive and deposit into the respective Accounts the specified amounts, if any, provided in the Closing Memorandum. Section 4.3 Funding Loan Fund; Direct Note Payment Fund. There is hereby separately created and established with the Fiscal Agent the Funding Loan Fund. (i) There shall be deposited in the Funding Loan Fund (i) all payments by the Borrower pursuant to the Borrower Note or the Borrower Loan Agreement, including all proceeds resulting from the enforcement of the Security or its realization as collateral, and (ii) all other moneys received by the Fiscal Agent under the Borrower Loan Agreement. (ii) Moneys in the Funding Loan Fund shall be held in trust for the Noteowners and, except as otherwise expressly provided herein, shall be used solely for the payment of the regularly scheduled principal of and interest on the Funding Loan, for the payment of principal and interest upon maturity, whether stated or accelerated, or upon mandatory or optional prepayment prior to the Maturity Date, and for the payment of the acceleration premium set forth in the Borrower Loan Agreement. (iii) After final payment in full of the Governmental Note and upon payment of any amounts payable to the United States pursuant to any rebate requirement and any other amounts owing hereunder and under the Borrower Loan Agreement, any amounts remaining in the Funding Loan Fund shall be paid to the Borrower. (b) There is hereby separately created and established with the Fiscal Agent the Direct Note Payment Fund.