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'f-'" - r ~ 200604217 SECTION 34. Tax Account. Company shall pay to Paying Agent on the day month ly installments are due under the Notes by means of a separate check, one-twelfth of an amount which would be sufficient to pay the taxes and assessments, imposed against the Project or any part thereof payable, or estimated by Paying Agent to be payable, during the ensuing twelve (12) months to be held by Paying Agent in an interest bearing escrow account separate and apart from the Agreement drawing interest at a rate not in excess of the average annual interest rate on the 2006 Bonds per annum unless a recognized bond counsel opines that a higher rate will not adversely affect the status ofthe interest on the Bonds (said amount hereinafter called "Tax Account"). Company agrees that not later than one (1) month prior to the date when the taxes and assessments will become delinquent, the amount in the Tax Account shall be sufficient to pay such taxes and assessments. Paying Agent shall apply the Tax Account to pay said taxes and assessments prior to the date that a delinquency occurs or a penalty attaches for nonpayment so long as the amount of the Tax Account held by Paying Agent is sufficient at that time to make such payments. Company does not pledge to Paying Agent any and all moneys now or hereafter deposited in the Tax Account as additional security for the payment of the Note but rather said moneys may only be used for the payment of said taxes and assessments. Ifthe amount of the Tax Account shall exceed the amounts due pursuant to this Section, Paying Agent shall, in its discretion, (1) return any excess to Company, or (2) credit such eXCeSS against future payments to be made to the Tax Account. In allocating such excess, Paying Agent may deal with the Authorized Company Representative as defined in the Agreement. If the Tax Account is not sufficient to pay the items Set forth above, Company shall pay to Paying Agent, upon demand, an amount which Purchaser shall estimate as sufficient to make up the deficiency. Upon the occurrence of an Event of Default, Paying Agent may only apply any sums in the Escrow Account for the payment of said taxes and assessments. SECTION 35. Execution Counterparts. This Mortgage may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 25