11-14-01 1. INDENTURE OF TRUST - Laserfiche WebLink

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Insurance Fund as provided in Section 5.06, for transfer to the Debt Service Reserve Fund as provided in Section 5.04,for transfer to the Repair and Replacement Fund as provided in Section 5.07,and for transfer to the Rebate Fund as provided in Section 5.08. Moneys in the Surplus Fund shall be disbursed by the Trustee whenever necessary to remedy any deficiency in any fund in the following order of priority: the Rebate Fund,the Taxes and Insurance Fund, the Senior Debt Service Account, the Debt Service Reserve Fund, the Repair and Replacement Fund, the Operating Reserve Fund and the Subordinate Debt Service Account. On or before Nvvvnibe►-December 1 of each year, commencing December 1, 2002,the Trustee shall distribute any t.Accss amounts in the Surplus Fund as follows: one-half(V2)of thv vx�vss any amounts shall be applied to the redemption of Subordinate Bonds as described in Section 3.01(e)herein,and one-half('/2) of tlm .x- ss any amounts shall be distributed to the Borrower;provided, however, that the Trustee may not redeem Subordinate Bonds or distribute money to the Borrower if(i)the Borrower is in default under any provisions of the Loan Agreement(including,without limitation,satisfying the debt service coverage requirement of Section 6.13 of the Loan Agreement and submitting all necessary forms and reports required by Section 6.02 of the Loan Agreement), the Mortgage or this Indenture, vi if(ii) there is a deficiency in any of the funds or accounts described above, or (iii) the Manager has made a loan to the Borrower as described in Section 5.11 herein to replace the bank letter of credit initially deposited to the Operating Reserve Fund and any portion of the loan remains unpaid. All investment income on amounts in the Surplus Fund, upon receipt by the Trustee, shall be deposited in the Revenue Fund. Section 5.06 Taxes and Insurance Fund. On the Date of Issuance for the Series 2001 Bonds, an amount shall be deposited into the Taxes and Insurance Fund as provided in Section 4.02, and thereafter amounts shall be deposited in the Taxes and Insurance Fund as provided in Section 5.01. In addition,there shall be deposited in the Taxes and Insurance Fund any amounts deposited by the Borrower under Section 4.02(c)of the Loan Agreement. On any date on which amounts in the Taxes and Insurance Fund are less than the amounts required to be deposited therein,the amount of such deficiency(to the extent of available funds and after any tians&rs raquirvd to be madam-t thc-Bund Fund))shall be transferred first,from amounts in the Surplus Fund; second, from amounts in the Subordinate Debt Service Account;third, from amounts in the Operating Reserve Fund; fourth, from amounts in the Repair and Replacement Fund; fifth, from amounts in the Optional Redemption Fund,and sixth,if dircctd in--writing by a Majority of Ilo1das,from amounts in the Senior Debt Service Account. The Trustee shall also deposit into the Taxes and Insurance Fund all other amounts required to be deposited into the Taxes and Insurance Fund under this Indenture or the Loan Agreement. The Trustee shall disburse any amount in the Taxes and Insurance Fund to the Borrower or the Manager to pay(or reimburse the Borrower or the Manager for prior payment of)all taxes(or payments in lieu of taxes), assessments or governmental charges (except charges for utility services) and insurance premiums due for insurance coverage related to the Project Faci I ities that is required under any provision of the Loan Agreement, upon written certification by the Authorized Borrower Representative that amounts therefor are due and payable. On and after the Completion Date,upon receipt by the Trustee,all investment income from amounts on deposit in the Taxes and Insurance Fund shall be deposited in the Revenue Fund. Section 5.07 Repair and Replacement Fund. Amounts shall be deposited in the Repair and Replacement Fund as provided in Section 5.01. On any date on which amounts in the Repair and - 44 -