Project Loan Fund Clause Samples

Project Loan Fund. (a) The Fiscal Agent shall deposit proceeds of the Tax-Exempt Funding Loan into the Tax-Exempt Note Proceeds Subaccount of the Project Account of the Project Loan Fund upon receipt of each advance thereof as provided in Section 2.12(b) hereof. The Fiscal Agent shall deposit the proceeds of the Taxable Funding Loan into the Taxable Note Proceeds Subaccount of the Project Account of the Project Loan Fund upon receipt of each advance thereof as provided in Section 2.12(b) hereof. The Fiscal Agent shall deposit $0.00 of the Borrower Equity Deposit into the Borrower Equity Account of the Project Loan Fund, as well as any additional amounts delivered from time to time to the Fiscal Agent and directed by the Borrower or Servicer to be deposited therein (excluding any proceeds of the Governmental Notes), as provided in Section 2.12(c) hereof. (b) Amounts on deposit in the Project Loan Fund shall be disbursed from time to time by the Fiscal Agent to the Title Company in accordance with this Funding Loan Agreement and the Construction Continuing Covenant Agreement, and thereafter by the Title Company pursuant to the Disbursing Agreement, for the purpose of: (i) refunding the principal of and interest on the Prior Notes; (ii) paying the Costs of the Project from the Taxable Note Proceeds Subaccount of the Project Account and from the Tax-Exempt Note Proceeds Subaccount of the Project Account; (iii) paying other costs of the Project from the Tax-Exempt Note Proceeds Subaccount of the Project Account, subject to the ninety-five percent (95%) “qualified residential rental project” use requirement in Section 142(a) of the Code, the two percent (2%) costs of issuance limitation in Section 147(g) of the Code, the reimbursement limitation in Section 1.150-2 of the Treasury Regulations, and the working capital limitations in Section 1.148-6(d) of the Treasury Regulations (with respect solely to the Tax-Exempt Note Proceeds Subaccount of the Project Account); and (iv) paying other costs of the Project from the Borrower Equity Account and Taxable Note Proceeds Subaccount of the Project Account. Amounts in the Tax-Exempt Note Proceeds Subaccount and Taxable Note Proceeds Subaccount of the Project Account of the Project Loan Fund shall be transferred to the Loan Prepayment Fund, the Rebate Fund and the Borrower at the times and in the manner provided in subsection (e) below. (c) The Fiscal Agent shall make disbursements from the respective accounts and subaccounts of the Project...