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Allocation of Revenues <br /> Not later than the first Business Day preceding each date on which principal of or interest on the <br /> Bonds becomes due and payable, the Trustee shall transfer from the Bond Fund and deposit into the <br /> following respective accounts (each of which the Trustee shall establish and maintain within the Bond <br /> Fund), the following amounts in the following order of priority, the requirements of each such account <br /> (including the making up of any deficiencies in any such account resulting from lack of Revenues <br /> sufficient to make any earlier required deposit)at the time of deposit to be satisfied before any transfer <br /> is made to any account subsequent in priority: <br /> (a)The Trustee shall deposit in the Interest Account an amount required to cause the aggregate <br /> amount on deposit in the Interest Account to be at least equal to the amount of interest becoming due <br /> and payable on such date on all Bonds then Outstanding. <br /> (b) The Trustee shall deposit in the Principal Account an amount required to cause the <br /> aggregate amount on deposit in the Principal Account to equal the principal amount of the Bonds <br /> coming due and payable on such date. <br /> (c) The Trustee shall deposit in the Reserve Account an amount,if any, required to cause the <br /> amount on deposit in the Reserve Account to be equal to the Reserve Requirement. <br /> Application of Interest Account <br /> All amounts in the Interest Account shall be used and withdrawn by the Trustee solely for the <br /> purpose of paying interest on the Bonds as it shall become due and payable(including accrued interest <br /> on any Bonds purchased or redeemed prior to maturity pursuant to the Indenture). <br /> Application of Principal Account <br /> All amounts in the Principal Account shall be used and withdrawn by the Trustee solely to pay <br /> the principal amount of the Bonds at their respective maturity dates. <br /> Application of Reserve Account <br /> (a) All amounts in the Reserve Account shall be used and withdrawn by the Trustee solely for <br /> the purpose of(i) paying principal of or interest on the Bonds when due and payable to the extent that <br /> moneys deposited in the Interest Account or the Principal Account are not sufficient for such purpose, <br /> and (ii) making the final payments of principal of and interest on the Bonds on the date on which all <br /> Bonds shall be retired under the Indenture or provision made therefor pursuant to the Indenture. After <br /> payment of the final payments of principal and interest on the Bonds and payment of any amounts then <br /> owed to the Trustee, all moneys then on deposit in the Reserve Account shall be withdrawn by the <br /> Trustee and paid to the Members,on a pro rata basis,as a refund of overpaid Lease Payments. <br /> (b) If, on any date, moneys on deposit in the Reserve Account, together with amounts then on <br /> deposit in the Bond Fund, are sufficient to pay all Outstanding Bonds, induding all principal thereof, <br /> and interest thereon, the Trustee shall, at the written direction of the Authority, transfer all amounts <br /> then on deposit in the Reserve Account, together with such amounts in the Bond Fund, to the <br /> Redemption Fund to be applied to the redemption of the Bonds in accordance with the provisions of the <br /> Indenture. Any amounts remaining in the Reserve Account upon payment in full of all Outstanding <br /> Bonds and all amounts then owed to the Trustee, shall be withdrawn by the Trustee and paid to the <br /> Members,on a pro rata basis, as a refund of overpaid Lease Payments. Any amounts on deposit in the <br /> Reserve Account in excess of the Reserve Requirement shall be transferred to the Bond Fund. <br /> At any time, moneys on deposit in the Reserve Account may be substituted by the Authority <br /> with a letter of credit, surety bond, bond insurance policy or other form of guaranty from a financial <br /> institution, the long-term, unsecured obligations of which are rated not less than "A"by Moody's and <br /> S&P,in an amount equal to the Reserve Requirement,upon presentation to the Trustee of such letter of <br /> credit, surety bond, bond insurance policy or other form of guaranty from a financial institution, with <br /> Appendix A <br /> Page 9 <br />