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the date the expenditure was paid or the date the applicable Project is placed in service (but no later than three (3)years after the expenditure is paid). Proceeds (if any) used for reimbursement of expenditures will be deposited in the general funds of the Member to which reimbursement is made and will not be used to replace funds of the Authority or the Member to be used to refund debt of the Authority or the Member, to create a sinking or pledged fund for such debt, for the Bonds or for the respective Lease Agreements or otherwise to create replacement proceeds for such debt, for the Bonds or for the respective Lease Agreements. (e) Completion of Projects; Investment of Project Accounts; Capital Expenditures. The respective Members have entered into, or will within six (6) months of the date hereof, enter into a contract for all or a portion of the respective Projects, which contract constitutes (or will constitute, in the case of contracts not yet entered into) a substantial binding obligation of the Member to a third party and is (or will be,in the case of contracts not yet entered into) in excess of five percent (5%) of the "Net Sale Proceeds" of the Bonds allocable to the respective Member (namely, an amount of proceeds of the Bonds equal to the issue price of the Bonds allocable to the Member, and less the proceeds deposited in the Reserve Account allocable to the Member (see subparagraph (t) below) and, in the case of the City of Fullerton, less the portion of the proceeds of the Bonds to be used for payment of the Fullerton Prior Obligations. Each Member will proceed with due diligence to complete the Member's Project and to spend the proceeds of the Bonds allocable to the Member. The contracts referenced above and the expected completion date of the respective Projects are set forth in the respective Proceeds Certificates of the Members.All expenditures from the Project Accounts will be capital expenditures. Not less than eighty-five percent (85%) of the Net Sale Proceeds allocable to the respective Members will be spent within three (3) years of the date hereof. Amounts deposited in the Project Accounts will be invested without yield restrictions for the period from the date hereof to the date that is three (3) years after the date hereof unless earlier expended (the "3-year Temporary Period"). Interest earnings and gains resulting from investment of the Project Accounts will be retained in the Account in which investment was made and used for the purposes thereof. Upon payment of costs of a Member's Project, and upon request of that Member, the Trustee will transfer amounts in the Member's Project Account to the Bond Fund to be applied as a credit against Lease Payments to be made by that Member and used for the payment of debt service on the Bonds. Proceeds of the Bonds and interest earnings and gains on investment thereof,if any, remaining in the respective Project Accounts following the 3- year Temporary Period will be invested at a yield not in excess of the yield of the Bonds (see subparagraph (r) below) or yield reduction payments will be made to the federal government with respect to such investment after the end of the 3-year Temporary Period. (f) Santa Ana Capitalized Interest. The proceeds of the Bonds ($139,951.05) deposited in the Interest Account will be used to pay a portion of the interest on the Bonds allocable to the City of Santa Ana from the date hereof through February 1, 1997, which date is within the 3-year Temporary Period and prior to that date will be invested without yield restrictions. Interest earnings and gains resulting from that investment will be retained in the Interest Account and applied to the payment of interest on the Bonds allocable to the City of Santa Ana. Interest on the Bonds allocable to the City of Santa Ana paid from the proceeds of the Bonds and interest earnings thereon will be 3