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Moneys in the Surplus Fund shall be disbursed by the Trustee whenever necessary to remedy <br /> any deficiency in any fund in the following order of priority: the Rebate Fund,the Taxes and <br /> Insurance Fund,the Senior Debt Service Account,the Debt Service Reserve Fund,the Repair <br /> and Replacement Fund, the Operating Reserve Fund and the Subordinate Debt Service <br /> Account. On or before December 1 of each year, commencing December 1, 2002, the <br /> Trustee shall distribute any amounts in the Surplus Fund as follows: one-half(1/2) of any <br /> amounts shall be applied to the redemption of Subordinate Bonds as described in Section <br /> 3.01(e) of the Indenture, and one-half ('/2) of any amounts shall be distributed to the <br /> Borrower; provided, however, that the Trustee may not redeem Subordinate Bonds or <br /> distribute money to the Borrower if(i)the Borrower is in default under any provisions of the <br /> Loan Agreement (including, without limitation, satisfying the debt service coverage <br /> requirement of Section 6.13 of the Loan Agreement and submitting all necessary forms and <br /> reports required by Section 6.02 of the Loan Agreement),the Mortgage or the Indenture,(ii) <br /> there is a deficiency in any of the funds or accounts described above,or(iii)a loan has been <br /> made to the Borrower as described in Section 5.11 of the Indenture to replace the bank letter <br /> of credit initially deposited to the Operating Reserve Fund and any portion of the loan <br /> remains unpaid. <br /> Taxes and Insurance Fund <br /> On the Date of Issuance for the Series 2001 Bonds,an amount shall be deposited into <br /> the Taxes and Insurance Fund as provided in Section 4.02 of the Indenture, and thereafter <br /> amounts shall be deposited in the Taxes and Insurance Fund as provided in Section 5.01 of <br /> the Indenture. In addition, there shall be deposited in the Taxes and Insurance Fund any <br /> amounts deposited by the Borrower under Section 4.02(c) of the Loan Agreement. On any <br /> date on which amounts in the Taxes and Insurance Fund are less than the amounts required <br /> to be deposited therein,the amount of such deficiency(to the extent of available funds and <br /> after any transfers required to be made to the Bond Fund) shall be transferred first, from <br /> amounts in the Surplus Fund; second, from amounts in the Subordinate Debt Service <br /> Account; third, from amounts in the Operating Reserve Fund; fourth, from amounts in the <br /> Repair and Replacement Fund; fifth,from amounts in the Optional Redemption Fund, and <br /> sixth,from amounts in the Senior Debt Service Account. The Trustee shall also deposit into <br /> the Taxes and Insurance Fund all other amounts required to be deposited into the Taxes and <br /> Insurance Fund under the Indenture or the Loan Agreement. <br /> The Trustee shall disburse any amount in the Taxes and Insurance Fund to the <br /> Borrower or the Manager to pay (or reimburse the Borrower or the Manager for prior <br /> payment of) all taxes(or payments in lieu of taxes), assessments or governmental charges <br /> (except charges for utility services) and insurance premiums due for insurance coverage <br /> related to the Project Facilities that is required under any provision of the Loan Agreement, <br /> upon written certification by the Authorized Borrower Representative that amounts therefor <br /> are due and payable. <br /> Repair and Replacement Fund <br />