Common use of Fund in lieu of Title XI Reserve Fund Clause in Contracts

Fund in lieu of Title XI Reserve Fund. If the Company has established a Capital Construction Fund (CCF), pur- suant to section 607 of the Act, whether interim or permanent, at any time when a deposit would otherwise be re- quired to be made into the Title XI Re- serve Fund, and the Company elects to make such deposits to the CCF, the Company must enter into an agree- ment, satisfactory to us, providing that all such deposits of assets therein will be security (CCF Security Amount) to the United States in lieu of the Title XI Reserve Fund. The deposit requirements of the Title XI Reserve Fund and Financial Agreement will be deemed satisfied by deposits of equal amounts in the CCF, and withdrawal of the CCF Security Amount will be sub- ject to our prior written consent. If, for any reason, the CCF terminates prior to the payment of the Obligations, the Secretary’s Note and all other amounts due under or secured by the Security Agreement or Mortgage, the CCF Secu- rity Amount will be deposited or rede- posited in the Title XI Reserve Fund. [65 FR 45152, July 20, 2000, as amended at 67 FR 61282, Sept. 30, 2002]