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balances available in the "Dormitory System Revenue Fund Account of 1963", (or the entire balance in said Accont in less than the required amount) until the funds and/or investments in the "Dormitory System Repair and Replacement Reserve Account of 1963" shall aggregate $520,000, and thereafter, such sums from said source, but not more than $52,000 annually, as may be required to restore and maintain the balance of $520,000 in said Repair and Replacement Reserve Account.

All funds/and or investments in the "Dormitory System Repair and Replacement Reserve Account of 1963" may be withdrawn and used for the purpose of paying the cost of any unusual or extraordinary maintenance, repairs, renewals or replacements of, to, or for the buildings, equipment and furnishings of the Dormitory System not paid as a part of its ordinary and normal current expenses.

However, in the event that the funds and/or investments in the Debt Service Reserve of the "Dormitory System Bond and Interest Sinking Fund Account of 1963" should be reduced below an amount sufficient to pay the interest and principal on all then outstanding Bonds due within the next succeeding two (2) fiscal years, once a balance of this amount has been accumulated in said Reserve, funds and/or investments on deposit in the "Dormitory System Repair and Replacement Reserve Account of 1963" shall be transferred to the Debt Service Reserve of the "Dormitory System Bond and Interest Sinking Fund Account of 1963" to the extent required to eliminate the deficiency of said Reserve.

It is further provided that nothing herein shall be construed to prevent the Borrower from depositing, or causing to be deposited, to the credit of the "Dormitory System Repair and Replacement Reserve Account of 1963" net revenues of the Dormitory System, or any other funds legally available to the Borrower for such purposes, in excess of the requirements of this Condition.

(g) Subject to making the foregoing payments and maximum deposits, the Borrower may use the balance of excess funds in the "Dormitory System Revenue Fund Account of 1963", after reserving therein an amount equal to the reasonably estimated current expenses of the Dormitory System during the next ensuing six (6) months as prescribed by the provisions of Special Condition (e) above, on January 1 and July 1 of each fiscal year:

(1) To redeem outstanding Bonds on the next interest payment date, in inverse numerical order and in amounts of not less than $5,000 par value at one time, provided:

(a) that calls of Bonds will be applied to each Series of Bonds on an equal pro rata basis (reflecting the proportion of the original amount of each Series of Bonds outstanding at the time of such call), and

(b) that calls of Bonds for each Series of Bonds will be in accordance with the call provisions of the respective Bond Series. However, the Borrower shall have the right to call subject to the call provisions of the respective Bond Series, any or all outstanding Bonds which may be called at par prior to calling any Bonds that are callable at a premium.

(2)For any expenditures, including the payment of debt service, in improving or restoring any existing housing and dining facilities or providing any such additional facilities; or

(3) For any other lawful purpose.

(h) The Borrower covenants and agrees to have placed in effect, or to place in effect in all of the dormitories and dormitory additions identified in paragraphs (1), (2) and (3) of Special Condition (b) above, no later than at the beginning of the next semester of the 1963-1964 regular term of two semesters and at the beginning of the first term of the 1964 summer sessions of two terms, and in the men's dormitory to be constructed under Project CH-NC-7 3(D) promptly upon its completion, the following minimum room rentals or charges: