Principal Reserve Fund

Before CommitmentCommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. , the BorrowerBorrowerPerson who is the obligor per the Note. must select 1 of the following options to redeem BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. :

• Minimum Dollar Balance:  
  • Required option for a non-single-asset entity BorrowerBorrowerPerson who is the obligor per the Note. .
  • PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. deposits accumulate until the balance is at least $100,000. 
  • BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. eligible for redemption are redeemed in $100,000 increments.
• Minimum Percentage Balance: 
  • PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. deposits accumulate until the balance is at least $100,000 greater than 20% of the original BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. principal amount. 
  • BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. eligible for redemption are redeemed in $100,000 increments, but the redemption payments may not reduce the PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. balance below 20% of the original BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. principal amount.

PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. deposits represent the principal amortization amount of the Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan financed by a Bond issuance where Fannie Mae provides credit enhancement by a Credit Enhancement Instrument, or an MBS for Bonds. based on

• level P&IP&IPrincipal and interest payments throughout the BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. term, and
• amortization per Part III, Chapter 19: Bond Transactions and Credit Enhancement Mortgage Loans, Section 1907.01: Terms.