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Development name with Agent as trustee. The withdrawal and use of funds deposited in the Reserve Fund for Replacements Account shall be controlled by CHFA and the City as set forth in subsection (c) below. (a) Security Deposit Account: If required by the tenant leases, Agent shall collect security deposits. In collecting, handling and disbursing these funds, Agent shall comply with California Civil Code Section 1950.5. The balance of such account shall at all times equal or exceed the aggregate of all outstanding obligations under said account. (b) Development Operating Account: All revenue collected pursuant to Section 11 and 22 of this Agreement shall be credited to the Development Operating Account. (c) Reserve Fund for Replacement Account: Each month Agent shall transfer from the Development Operating Account to the Reserve Fund for Replacements Account an amount if and when required by the Regulatory Agreement and shown in the Annual Operating Budget for the Development. Funds held in the Reserve Fund for Replacement Account shall be placed in a restricted account which provides that no funds shall be withdrawn without the prior written approval of CHFA and the City. 13. Disbursements. Agent may disburse funds from the accounts described in Section 12 of this Agreement only for the following purposes. All other disbursements shall require the express written permission of Owner and City, except when necessary for emergency repairs required to avoid injury to persons or property. In the case of emergencies, the Agent shall, as soon as practical thereafter, provide notice of the emergency expenditure to the City and Owner. (a) Security Deposit Account: Disbursements may be made from this account only to: (1) Pay the cost of any unpaid rent, damage or unreasonable wear and tear caused by the tenant, or to reimburse the Development Operating Account for such payment; and (2) Return to the tenant upon termination of the tenancy the portion of the security deposit not used in accordance with (1) above. (b) Development Operating Account: Disbursement may be made form this account only to: (1) Make the payments required to be made by Owner to the Lenders under their respective mortgage loans which may include payments of principal and interest, taxes, assessments, fire and other hazard insurance premiums or other amounts that may from time to time be required; and (2) Make monthly transfers to the Reserved Fund for Replacements Account; (3) Pay Agent's fee under Section 6 of this Agreement; (4) Pay reasonable attorney's fees and other necessary costs incurred in connection with actions to terminate tenancies when such actions have been authorized in writing by Owner in accordance with Section 14 of this 19:MGMTAGR.EHI (12/18/89) 6