Sinking fund -- Nature and application

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    A sinking fund:

        (1)    may be held:

            (i)    for all of the bonds issued to finance projects at a particular participating institution without distinction or priority of one bond over another bond;

            (ii)    for a particular project and for the bonds issued for that project;

            (iii)    for bonds having a lien subordinate to the lien securing other bonds; and

        (2)    shall be subject to the trust agreement.


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