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Where the moneys on deposit in the Construction Account exceed the estimated
disbursements on account of the Project for the next 90 days, the Borrower
may deposit such excess funds in time deposits in banks that are members of
the Federal Deposit Insurance Corporation or may invest such excess funds in
direct obligations of, or obligations the principal of and interest on which are
guaranteed by, the United States Government, which shall mature not later than
18 months after the date of such investment and which shall be subject to redemp-
tion at any time by the holder thereof. The earnings from any such deposits or
investments shall be deposited in the Construction Account by the Borrower.

Any moneys remaining in the Construction Account after all costs of the Project
have been paid shall be promptly used to the extent possible for the redemption
of Bonds, and any residue shall be deposited in the Bond and Interest Sinking
Fund provided for in the Loan Agreement.

Section 13. Payment of Costs - Additional Funds. The Borrower shall pay all
Project Costs and furnish from sources other than the proceeds of the loan, and
from sources and in a manner which will not jeopardize the security of the Bonds,
the additional funds, if any, which will be sufficient to finance the total Project
Costs.

Section 24. Prompt Procedure - Economic Construction. The Borrower covenants
and agrees that it will proceed promptly with all matters necessary to the financ-
ing and the development of the Project; and that the Project will be undertaken and
developed in such a manner that economy will be promoted in such develop-
ment and in the construction work; and that the Project will not be elaborate or
extravagant design or materials.

Section 15. Approvals and Permits. The Borrower shall obtain all approvals
and permits required by law as a condition precedent to the acquisition, con-
struction, development, and operation of the Project.

Section 16. Submission of Proceedings, Contract and Other Documents. The
Borrower shall submit to the Government such data, reports, records, and
documents relating to the financing, construction, and operation of the Project
and financial condition of the Borrower as the Government may require.
Approval of the Government must be obtained prior to the assignment of any
interest in or part of any contract relating to the Project.

Section 17. Construction by Contract. All work on the Project shall be done
under contract and every opportunity shall be given for free, open, and com-
petitive bidding for each and every construction, material, and equipment
contract. The Borrower shall give such publicity by advertisements or calls
for bids by it for the furnishing to it of work, labor, materials, and equipment
as required by applicable law and as will provide adequate competition; and the award
of each contract therefor shall be made, after approval by the Government, to
the lowest responsible bidder as soon as practicable: Provided, that in the
selection of equipment or materials the Borrower may, in the interest of
standardization or ultimate economy, if the advantage of such standardization
or such ultimate economy is clearly evident, award a contract to a responsible
bidder other than the lowest in price. The Borrower shall obtain the concur-
rence of the Government before approving subcontracts relating to the Project.

Section 18. Changes in Construction Contracts. Any change in a construction
contract shall be submitted to the Government for approval. Construction
contracts shall include a provision specifying that the above requirement will
be met.

Section 19. Contract Security. The Borrower shall require that each con-
struction contractor shall furnish a performance bond in an amount at least
equal to 100 percent of his contract price as security for the faithful perform-
ance of his contract and also a payment bond in amount not less than 50 percent
of his contract price or in a penal sum not less than that prescribed by State,
territorial, or local law, as security for the payment of all persons perform-
ing labor on the Project under his contract and furnishing materials in con-
nection with his contract. The performance bond and the payment bond may
be in one or in separate instruments in accordance with local law.