Project Account Structure
| Account | Purpose |
|---|---|
| Revenue Account | Collection of all operating revenues |
| Operating Account | Operating expenses and payroll |
| Debt Service Account | Principal and interest payments |
| DSRA | Debt Service Reserve Account |
| Maintenance Reserve | Major maintenance funding |
| Distribution Account | Sponsor distributions |
Cash Waterfall Priority
| Priority | Application of Funds |
|---|---|
| 1 | Taxes and statutory obligations |
| 2 | Operating expenses |
| 3 | Maintenance reserve funding |
| 4 | Debt service payments |
| 5 | DSRA replenishment |
| 6 | Permitted distributions |
Distribution Conditions
- Minimum DSCR maintained at 1.30x
- No default under financing documents
- DSRA fully funded
- Required reserve accounts funded
- Lender reporting obligations satisfied
Account Bank Requirements
- Controlled account structure
- Account pledge arrangements
- Lender visibility over cash movements
- Periodic account reconciliation
- Independent audit rights