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55 <br /> Net Proceeds Fund and then may apply those proceeds to repair or restoration. The <br /> County must act with due diligence and in a commercially reasonable manner to <br /> provide for the repair and restoration. <br /> The Trustee will disburse Net Proceeds for the payment of such costs upon <br /> receipt of requisitions provided by the County and substantially in the form of <br /> Exhibit E. The Trustee may rely conclusively on requisitions as authorization for <br /> payments, and the Trustee has no duty or responsibility to verify any matters in the <br /> requisitions. The Trustee must not honor any requisition if an Event of Default is <br /> continuing. <br /> The County will not be entitled to any reimbursement of any funds paid <br /> pursuant to this subsection, nor will the County be entitled to any postponement or <br /> diminution of its obligation to make Bond Payments because of any contribution. <br /> Any repair or replacement paid for in whole or in part out of Net Proceeds will be <br /> the County's property and will be part of the Mortgaged Property. <br /> (iii) If the County determines that the Net Proceeds and other funds will not <br /> be sufficient for the purposes described in (i) or (ii), then the County must direct the <br /> Trustee to deposit the Net Proceeds into the Redemption Account in the Bond Fund <br /> and use the Net Proceeds to prepay or defease the Bonds in whole or in part <br /> pursuant to Section 2.01 and Article XI and as directed by a County Representative. <br /> (d) Nothing in this Section creates an option in the County or any other <br /> party to provide for the early payment of Bonds not provided for in Article II. <br /> ARTICLE VI <br /> COUNTY'S WARRANTIES. REPRESENTATIONS AND COVENANTS <br /> Section 6.01. In General. The County makes the following statements of <br /> fact, with the intent and understanding that the Trustee and the Bondholders will <br /> rely on these statements in deciding to enter into this Agreement and to purchase <br /> and hold Bonds. <br /> (a) The County is a duly organized and validly existing political subdivision <br /> of the State. The County has all powers necessary to enter into the transactions <br /> contemplated by this Agreement and the Deed of Trust and to carry out its <br /> obligations under this Agreement. <br /> 24 <br />