Principal Reserve Fund

Requirements

You must ensure no PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. withdrawal occurs without Fannie Mae's approval.

Operating Procedures

For each Credit Enhancement Mortgage Loan Credit 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. , you must:

Review the Bond Trustee's Bond Trustee'sTrustee for a Credit Enhancement Instrument. reported PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. balance.
Collect from the Borrower BorrowerPerson who is the obligor per the Note. any amount withdrawn from the PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. , including withdrawals reimbursing Fannie Mae for amounts it paid per the
- Credit Enhancement Instrument Credit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for Bonds MBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. , or
- Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .