Laserfiche WebLink
expenditure of all Gross Proceeds. To that end, the Issuer must adopt reasonable and <br />consistently applied methods of accounting for all Gross Proceeds. Appendix I hereto sets forth <br />a description of the required allocation and accounting rules with which the Issuer agrees to <br />comply. <br />SECTION 7. ADMINISTRATIVE COSTS OF INVESTMENTS. Except as <br />otherwise provided in this Section 7, an allocation of Gross Proceeds to a payment or receipt on a <br />Nonpurpose Investment is not adjusted to take into account any costs or expenses paid, directly <br />or indirectly, to purchase, carry, sell or retire the Nonpurpose Investment (administrative costs). <br />Thus, administrative costs generally do not increase the payments for, or reduce the receipts <br />from, Nonpurpose Investments. <br />In determining payments and receipts on Nonpurpose Investments, Qualified <br />Administrative Costs are taken into account by increasing payments for, or reducing the receipts <br />from, the Nonpurpose Investments. Qualified Administrative Costs are reasonable, direct <br />administrative costs, other than carrying costs, such as separately stated brokerage or selling <br />commissions, but not legal and accounting fees, recordkeeping, custody and similar costs. <br />General overhead costs and similar indirect costs of the Issuer such as employee salaries and <br />office expenses and costs associated with computing Rebatable Arbitrage are not Qualified <br />Administrative Costs. <br />Allocation and accounting rules are provided in Appendix I attached hereto. <br />A-13 <br />