Common use of Construction Fund Clause in Contracts

Construction Fund. The Issuer shall establish with the Trustee a separate fund to be known as the Construction Fund, to the credit of which the deposits are to be made as required by Section 3.1 hereof. The Construction Fund shall consist of the Lease Rental Reserve Account, the Capitalized Interest Account and the Construction Account. (a) The Trustee shall, without other or further authority than is hereby given, pay all of the proceeds of the Series 20 Bonds deposited in the Lease Rental Reserve Account to the Issuer, which shall deposit such funds in the Reserve Account. Upon such payment by the Trustee to the Issuer, the Lease Rental Reserve Account shall be closed by the Trustee. (b) The Trustee shall, without other or further authority than is hereby given, use all of the proceeds of the Series 20 Bonds from the Capitalized Interest Account, or if the Capitalized Interest Account is not sufficient, then from the Construction Account, to pay interest accruing on the Series 20 Bonds through and including , 20 . (c) Moneys on deposit in the Construction Account shall be paid out from time to time by the Trustee to or upon the order of the Borrower to pay for the Financed Project Costs. Upon receipt by the Trustee of a written request in the form attached hereto as Exhibit A signed by an Authorized Borrower Representative: (1) stating that the costs of an aggregate amount set forth in such written request have been made or incurred and were necessary for the construction of the Project and were made or incurred in accordance with the construction contracts, plans and specifications, or purchase contracts therefor then in effect or that the amounts set forth in such written request are for allowable Financed Project Costs; (2) stating that no part of the said costs was included in any written request previously filed with the Trustee under the provisions hereof; (3) stating a recap of payees and the amount paid; and (4) stating that such costs are appropriate for the expenditure of proceeds of the Bonds under the Act.

Construction Fund. The Issuer A special fund is hereby created and designated the “Puerto Rico Aqueduct and Sewer Authority Construction Fund” (herein called the “Construction Fund”) which shall establish be held by the Trustee. There shall be deposited with the Trustee a separate fund to be known as the Construction Fund, to the credit of which the deposits are Construction Fund (i) the amounts required to be made as required by deposited under the resolution of the Board authorizing the issuance of particular Series of Bonds or the applicable Supplemental Agreement and (ii) at the election of the Board, any moneys of the Authority that may properly be deposited to the credit of said Fund, or the proceeds of any grants received from any source, to be used for the purpose of paying the Cost of Improvements. All earnings on moneys in each Account and subaccount shall be credited to such Account and subaccount and in accordance with Section 3.1 hereof6.01(a). The moneys in the Construction Fund shall consist be held in trust, separate and apart from all other funds of the Lease Rental Reserve AccountAuthority and applied only to the payment of the Costs of Issuance of the Bonds, interest during construction and for such period thereafter as the Capitalized Interest Account Authority shall determine and the Cost of Improvements (in accordance with and subject to the limitations of this Article), and, pending such application, such moneys shall be subject to a lien and charge in favor of the Holders of the Bonds and for the further security of such Holders until paid out as herein provided. The Authority may establish additional Accounts and subaccounts within the Construction Account. (a) The Trustee shall, without other or further authority than is hereby given, pay all of Fund as may be provided in said Supplemental Agreement which Accounts and the proceeds of the particular Series 20 of Bonds deposited therein (together with all investments thereof and investment income earned thereon), unless otherwise provided in the Lease Rental Reserve Account applicable Supplemental Agreement, are pledged solely to the Issuer, which payment of such particular Series of Bonds. Deposits shall deposit such funds in the Reserve Account. Upon such payment by the Trustee be made to the Issuer, the Lease Rental Reserve Account shall be closed by the Trustee. (b) The Trustee shall, without other or further authority than is hereby given, use all credit of the proceeds of the Series 20 Bonds from the Capitalized Interest Account, or if the Capitalized Interest Account is not sufficient, then from the Construction Account, to pay interest accruing on the Series 20 Bonds through Fund and including , 20 . (c) Moneys on deposit in the Construction Account shall be paid out from time to time by the Trustee to or upon the order of the Borrower to pay for the Financed Project Costs. Upon receipt by the Trustee of a written request in the form attached hereto any Accounts and subaccounts as Exhibit A signed by an Authorized Borrower Representative: (1) stating that the costs of an aggregate amount set forth provided in such written request have been made or incurred and were necessary for the construction of the Project and were made or incurred in accordance with the construction contracts, plans and specifications, or purchase contracts therefor then in effect or that the amounts set forth in such written request are for allowable Financed Project Costs; (2) stating that no part of the said costs was included in any written request previously filed with the Trustee under the provisions hereof; (3) stating a recap of payees and the amount paid; and (4) stating that such costs are appropriate for the expenditure of proceeds of the Bonds under the ActSupplemental Agreement.