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ARTICLE V <br />ESTABLISHMENT OF FUNDS; DEPOSIT AND <br />APPLICATION OF PROCEEDS <br />SECTION 5.01. Establishment of Funds and Accounts. <br />(a) The Trustee shall establish and maintain a special trust fund to be held by the <br />Trustee called the "City of Santa Ana Water System Improvement Project Payment Fund" (the <br />"Payment Fund"). Within the Payment Fund, the Trustee shall establish and maintain an Interest <br />Account (the "Interest Account"), a Principal Account (the "Principal Account"), a Sinking <br />Account (the "Sinking Account"), and a Redemption Account (the "Redemption Account"). <br />(b) The Trustee shall establish and maintain a special trust fund to be held by the <br />Trustee called the "City of Santa Ana Costs of Issuance Fund" (the "Costs of Issuance Fund"). <br />(c) The Authority shall establish and maintain a special trust fund to be held by the <br />Treasurer called the "City of Santa Ana Acquisition Fund" (the "Acquisition Fund"). <br />SECTION 5.02. Application of Proceeds. Upon the receipt of payment for the 2024 <br />Bonds on the Closing Date, the Trustee and the Authority shall apply the proceeds thereof as <br />follows: <br />(i) The Trustee shall transfer $ to the Escrow Agent for <br />deposit in the escrow fund established under the Escrow Agreement; <br />(ii) The Trustee shall transfer to the Treasurer the amount of <br />$ for deposit in the Acquisition Fund; and <br />(iii) The Trustee shall deposit the amount of $ to the Costs of <br />Issuance Fund. <br />For record keeping purposes, the Trustee may establish such accounts as may be necessary <br />to reflect such transfer of proceeds. <br />SECTION 5.03. Use of Moneys in the Acquisition Fund; Costs of Issuance Fund. <br />(a) The Treasurer shall hold the moneys in the Acquisition Fund and shall disburse <br />such moneys therefrom to pay Acquisition Costs. Such disbursements shall be made from time to <br />time upon receipt of a Written Request of the City on behalf of the Authority which: (a) states with <br />respect to each disbursement to be made: (i) the requisition number, (ii) the name and address of <br />the person, firm or authority to whom payment is due, (iii) the amount to be disbursed, and (iv) <br />that each obligation therein has been properly incurred, and is a proper charge against the <br />Acquisition Fund and has not been the basis of any previous disbursement; (b) specifies in <br />reasonable detail the nature of the obligation; and (c) is accompanied by a bill or statement of <br />account for each obligation. <br />23 <br />55394.00068\42092121.3 <br />