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(b) Thirteen Month Temporary Period for Bona Fide Debt Service Funds <br /> (Amounts in the Revenue Fund and the Bond Fund). <br /> (i) A bona fide debt service account is that portion of any fund or account, <br /> or any combination of funds or accounts, the amount in which (A) will be used <br /> primarily to achieve proper matching of revenues with principal and interest <br /> payments on the Bonds within each bond year;and(B)will be depleted at least once <br /> each bond year,except for a reasonable carry-over amount not to exceed the greater <br /> of(I)the earnings on the funds for the immediately preceding bond year; or(II)one- <br /> twelfth of the principal and interest payments on such Bonds for the immediately <br /> preceding bond year(the "Bona Fide Debt Service Limit"). <br /> (ii) Monthly installments of Loan Repayments in any Bond Year are <br /> required to be deposited in the Revenue Fund and subsequently transferred to the <br /> Bond Fund that(after credit for accrued interest and investment income)will equal <br /> the principal and interest payments due on the Bonds in the Bond Year. Amounts in <br /> the Bond Fund and the Revenue Fund will not exceed the Bona Fide Debt Service <br /> Limit and all amounts therein are not yield restricted for a temporary period of 13 <br /> months commencing upon receipt thereof by the Trustee. <br /> (c) Thirty Day Period. Replacement proceeds ofthe Bonds not addressed <br /> above are not yield restricted for a temporary period of 30 days beginning on the date that <br /> such amounts are first treated as replacement proceeds. (See also "Minor Portion" below). <br /> 5.4. Reasonably Required Reserve Fund. <br /> (a) Limitation on Use of Sale Proceeds. No more than 10% of the sale <br /> proceeds of an issue of tax exempt bonds may be deposited in a reasonably required reserve <br /> or replacement fund. Sale proceeds in an amount equal to$ will be deposited <br /> in such a fund. Such amount is less than 10% ($ ) of the sale proceeds of the <br /> Bonds. <br /> (b) Debt Service Reserve Fund is Reasonably Required. As represented <br /> by the Original Purchaser, the Debt Service Reserve Fund is reasonably required for the <br /> offering of the Bonds. <br /> (c) Maximum Amount for Unrestricted Yield. Under Treas.Reg.§1.148- <br /> 2(f)(2) gross proceeds in a reasonably required reserve or replacement fund are not yield <br /> restricted; provided however,that the amount of gross proceeds of an issue that will qualify <br /> for such investment is limited to the least of(i) 10% of the stated principal amount of the <br /> Bonds, (ii) the maximum annual principal and interest requirement on the Bonds, or (iii) <br /> 125%of the average annual principal and interest requirement of the Bonds(the"Maximum <br /> Unrestricted Reserve Amount"). Under the Indenture,the amount required to be maintained <br /> -10- <br />