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entered into trust indentures requiring the creation of various
trust funds, including:
(a) The Mortgage Acquisition Fund, which shall be
disbursed for the purpose of paying in full the
Construction Note and acquiring an assignment of or
satisfying and releasing the Construction Deed of Trust
* * * or which shall be applied to the redemption of
the Bonds * * * in the event of the failure to satisfy
those requirements.
(b) The Revenue Fund, into which all Revenues
shall be paid, except as otherwise provided * * *
(c) The Principal and Interest Fund, to be funded
monthly, and which shall be held by the Trustee for
disbursal by the Trustee * * * from time to time solely
for the purpose of paying the principal of an interest
on the Bonds * * * and * * * to pay the Trustee’s fees
from earnings thereon;
(d) The Debt Service Reserve Fund, which shall be
funded upon Completion of Construction from the
Mortgage Acquisition Fund, in an amount equal to the
Debt Service Reserve Requirement ($167,100), and shall,
subsequent to the Completion of Construction, be
disbursed by the Trustee solely to pay the principal
of, premium, if any, and interest on the Bonds. * * *
(e) The Insurance and Tax Escrow Fund, to be
funded monthly, from which the Trustee shall pay the
premiums of all insurance on the Project required by
this Indenture and all taxes, assessments or
governmental charges except utility services * * *
(f) The Maintenance Fund, to be used upon the
written request of the Owner, with the concurrence of
the Trustee, for extraordinary maintenance * * *
(g) The Replacement Fund, to be used upon written
request of the Owner with the concurrence of the
Trustee, for extraordinary repair and replacement * * *
(h) The Operating Fund, to be funded monthly,
which shall be disbursed to make monthly payments to
the Owner for operation of the Project pursuant to the
requirements of its then current Budget. * * *
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