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a Responsible Officer of the Trustee has written notice that any payment of principal or interest on a Bond has been recovered from an Owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Trustee, pursuant to and provided that the terms of the letter of credit, surety bond or insurance policy, if any, securing such Series 2013 Bonds �o provide, shali so notify the issuer thereof and draw on such letter of credit, surety bond or insurance poiicy to the lesser of the extent required or the maximum amount of such letter of credit, surety bond or insurance policy in order to pay such Bond Owners the principal and interest so recovered. Following the replacement of moneys then on deposit in the Reserve Fund by an irrevocable letter of credit, surety bond, or insurance policy as provided herein, the Trustee shall notify S&P in writing and any monEys on deposit in the Reserve Fund in excess of the Reserve Requirement sha11 be transferred by the Trustee to the Payment Account to be credited as provided herein, or, with the written approval of nationally recognized bond counsel, to such other fund or account as may be directed by the Authority. Section 3.07. Held in Trust. The moneys and investments held by the Trustee under Sections 3.03, 3.04, 3.05, and 3.06 are irrevocably held in trust for the benefit of the Owners, and for the purposes herein specified, and such moneys, and any income or interest earned thereon, shall be expended only as provided in this Indenture, and shall not be subject to levy or attachment or lien by or for the benefit of any creditor of the Trustee or the Authority. Section 3.08. Commin�ling of Monevs in Funds. The Trustee is directed by the Authority to commingle any of the funds held by it pursuant to this Indenture into a separate fund . or funds for investment purposes only; provided, however, that all funds or accounts held by the Trustee hereunder shall be accounted for separately notwithstanding such commingling by the Trustee. Section 3.09. Arbitraee Covenant. �The Authority hereby covenants with the Owners of the Bonds that, notwithstanding any other provision of this Indenture, it will make no use of the proceeds of the Bonds which would cause the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Internal Revenue Code of 1986, as amended. The Trustee hereby covenants with the Owners of the Bonds that it will comply with the express provisions of this Indenture and will follow the written directions of the Authoriry and, notwithstanding anything to the contrary contained herein, so long as the Trustee shall have complied with the written instructions of the Authority, if any, with respect to making any rebate to the United States of America, the Trustee shall conclusively be deemed to have complied with its obligations hereunder and shall not be liable if the Bonds become arbitrage bonds. Section 3.10. Pledge of Revenues . All of the Revenues are hereby irrevocably pledged to the punctual paymeni of De6t Service and such Revenues shall not be used for any other purpose while any of the Bonds remain�outstanding, except as provided herein. This pledge shall constitute a first lien on the Revenues for the payment of the Bonds and payments iri accordance with the terms hereof and thereof. -23- �338471 I.DOC