PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

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Fund are insufficient for such purpose. On any date on which amounts in the Debt Service Reserve Fund are less than the Debt Service Reserve Requirement, the amount of such deficiency shall be transferred first, from amounts in the Surplus Fund, second, from amounts in the Subordinate Debt Service Account of the Bond Fund, and third, from amounts in the Repair and Replacement Fund. In the event that following such transfers amounts in the Debt Service Reserve Fund remain less than • Debt Service Reserve Fund. An$285,000,then an Event of Default shall occur at the end of such period if the amount on deposit in the Debt Service Reserve Fund is below$285,000., If the balance in the Debt Service Reserve Fund exceeds the Debt Service Reserve Requirement, the excess is to be transferred to the Revenue Fund. Amounts in the Debt Service Reserve Fund may be invested in Permitted Investments as defined in the Indenture. Repair and Replacement Fund The Trustee shall maintain a Repair and Replacement Fund established under the Indenture. Under the Loan Agreement, commencing in November, 2003, the Trustee will transfer amounts in the Revenue Fund to the Repair and Replacement Fund in an amount equal to the Monthly Repair and Replacement Deposit, initially $775. All investment income from funds on hand in the Repair and Replacement Fund are to be deposited in the Revenue Fund. Under certain circumstances,moneys in the Repair and Replacement Fund may be transferred to the Senior Debt Service Account of the Bond Fund to make payments on the Senior Bonds. Subject to conditions imposed by the Indenture, amounts held in the Repair and Replacement Fund are to be disbursed by the Trustee as directed by the Borrower to pay or reimburse the Borrower for payment of any costs of capital improvements or extraordinary items of maintenance with respect to the Project Facilities(See"The Indenture"in Appendix A to this Official Statement). Upon the occurrence of an Event of Default, amounts in the Repair and Replacement Fund are pledged to the payment of the principal of and interest on the Series 2001 Bonds. Surplus Fund The Trustee is to maintain a Surplus Fund under the Indenture. All investment income from funds on hand in the Surplus Fund are to be credited to the Revenue Fund. The Trustee shall also deposit into the Surplus Fund all other amounts required to be deposited into the Surplus Fund under the Indenture or the Loan Agreement. In the event of shortfalls in such funds and accounts, amounts in the Surplus Fund shall be withdrawn for transfer to the Senior Debt Service Account of the Bond Fund,to the Taxes and Insurance Fund,to the Debt Service Reserve Fund,to the Repair and Replacement Fund, to the Operating Reserve Fund and to the Subordinate Debt Service Account of the Bond Fund.