25H - JOINT COMM. FACILITIES AGMT

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Section 3. Disbursements. Bond proceeds available for the acquisition, construction and installation of the Santa Ana Facilities shall be deposited in a special account (the "Santa Ana Facilities Account") to be established under the Indenture pursuant to which the Bonds are issued. Moneys on deposit in the Santa Ana Facilities Account shall be invested and disbursed at the direction of the Community Facilities District. To the extent that Bond proceeds are available therefor, the Community Facilities District shall cause disbursements to be made from the Santa Ana Facilities Account from time to time to pay the costs of the acquisition, construction and installation of the Santa Ana Facilities upon submission ofa written request of Santa Ana stating (a) the name and address of the person to whom payment is to be made, (b) the amount to be paid, (c) that an obligation in such amount has been incurred by Santa Ana, (d) the purpose for which the obligation to be paid was incurred, (e) that each item of the obligation to be paid constitutes a cost of the Santa Ana Facilities, (f) that the obligation to be paid has not been the subject of a prior Santa Ana request for disbursement from the Santa Ana Facilities Account, and (g) if the amount requested to be disbursed is to be applied to the purchase of any Santa Ana Facilities, that such Santa Ana Facilities were constructed as if they had been constructed under the direction and supervision, or under the authority of, Santa Ana. The Community Facilities District shall process in a timely manner written requests for disbursements received from Santa Ana that conform to the requirements hereof. Section 4, Credit for Tustin's Oblil!ation for Improvements, Upon the deposit of proceeds of the Bonds in the Santa Ana Account, Tustin shall receive a credit against the payment of its fair share obligation of the Total Costs (as defmed in the Amendment) for each Improvement (as defmed in the Amendment) in an amount equal to the amount so deposited, and, upon such deposit, Tustin shall be deemed to have paid, in accordance with the Amendment, such fair share obligation in an amount equal to the amount so deposited. Section 5. Construction. Ownership and Maintenance of Tustin Facilities and Sauta Ana Facilities. Tustin shall be solely responsible for the acquisition, construction and installation of the Tustin Facilities, and Santa Ana shall have no responsibility therefor or liability with respect thereto. The Tustin Facilities shall be and remain the sole and separate property of Tustin and shall be operated, maintained and utilized by Tustin. Santa Ana shall not have any ownership interest in the Tustin Facilities, and Santa Ana shall have no responsibility for the operation, maintenance or utilization of the Tustin Facilities or any liability with respect thereto, Santa Ana shall be solely responsible for the acquisition, construction and installation of the Santa Ana Facilities, and Tustin shall have no responsibility therefor or liability with respect thereto. The Santa Ana Facilities shall be and remain the sole and separate property of Santa Ana and shall be operated, maintained and utilized by Santa Ana. Tustin shall not have any ownership interest in the Santa Ana Facilities, and Tustin shall have no responsibility for the operation, maintenance or utilization of the Santa Ana Facilities or any liability with respect thereto. Section 6, Tax Matters, In connection with the issuance of any Bonds, a portion of the proceeds of which are to be made available to fmance the acquisition, construction and DOCSLAI :517226.2 42081-8 GHI 3 25H-5