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PART II <br />1. Receipt, Deposit and Use of Guaranteed Loan Funds. <br />(a) Except for funds deducted on the Conversion Date <br />pursuant to paragraph 4(b) and fees and charges deducted by <br />the Fiscal Agent/Trustee pursuant to paragraph 4(a), the <br />Guaranteed Loan Funds shall be electronically transferred in <br />accordance with the Borrower's instructions for deposit in a <br />separate, identifiable account (the "Guaranteed Loan Funds <br />Account") with a financial institution whose deposits or <br />accounts are Federally insured. The Guaranteed Loan Funds <br />Account shall be established and designated as prescribed in <br />the attached form document entitled "Letter Agreement for <br />Section 108 Loan Guarantee Program Deposit Account" <br />(Attachment 1) and shall be continuously maintained for the <br />Guaranteed Loan Funds. Such Letter Agreement must. be <br />executed when the Guaranteed Loan Funds Account is <br />established. (A fully executed copy of such Letter Agreement <br />shall be submitted to the Secretary within thirty days of its <br />execution.) <br />The Borrower shall make withdrawals from said account only <br />for payment of the costs of approved Section 108 activities, <br />for transfer to the Loan Repayment Account or for the <br />temporary investment of funds pursuant to this paragraph <br />1(a). Such temporary investment of funds into the Guaranteed <br />Loan Funds Investment Account shall be required within three <br />Business Days after the balance of deposited funds exceeds <br />the amount of the Federal deposit insurance on the Guaranteed <br />Loan Funds Account. At that time, any balance of funds in <br />the Guaranteed Loan Funds Account exceeding such insurance <br />coverage shall be fully (1000) and continuously invested in <br />Government Obligations, as defined in paragraph 10 hereof, <br />held in the Guaranteed Loan Funds Investment Account. <br />All temporary investments, whether or not required as above, <br />shall be limited to Government Obligations having maturities <br />that are consistent with the cash requirements of the <br />approved activities. In no event shall the investments <br />mature on or after October 31, 2011, or have maturities which <br />exceed one year. All such investments shall be held in trust <br />for the benefit of the Secretary by the above financial <br />institution in an account (the "Guaranteed Loan Funds <br />Investment Account") established and designated as prescribed <br />in the attached form document entitled "Letter Agreement for <br />Section 108 Loan Guarantee Program Investment Account" <br />(Attachment 2), which account shall be maintained for all <br />Government Obligations purchased with funds from the <br />Guaranteed Loan Funds Account. The Guaranteed Loan Funds <br />Investment Account need only be established if and when the <br />Borrower is required to invest, or otherwise invests, the <br />Guaranteed Loan Funds in Government Obligations. Such Letter <br />