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D. When the amount in the special reserve fund equals or <br />exceeds the amount required to retire the remaining unmatured bonds <br />(whether by advance retirement or otherwise), the amount of the <br />special reserve fund shall be transferred to the redemption fund, <br />and the remaining installments of principal and interest not yet due <br />from assessed property owners shall be cancelled without payment. <br /> <br /> Section 5.4. INVESTMENT EARNINGS FUND. Proceeds of the <br />investment of amounts in the improvement fund, the special reserve <br />fund and the redemption fund will be deposited in the investment <br />earnings fund. On July 1 of each year during the term of the bonds <br />(or at other times as may be required or permitted by regulations of <br />the United States Internal Revenue Service), the Director of Finance <br />shall determine whether any portion of investment earnings must be <br />rebated to the United States pursuant to Section 148 of the United <br />States Internal Revenue Code and regulations adopted thereunder. <br />Any amounts required to be rebated will be transferred to the <br />arbitrage rebate fund, and the balance will be transferred as <br />follows: <br /> <br /> (a) To the extent that the balance in the special reserve <br />fund is less than the Reserve Requirement, a transfer will be made <br />from the investment earnings fund to the special reserve fund. <br /> <br /> (b) The remaining balance in the investment earnings fund, if <br />any, will be transferred to the improvement fund until the <br />improvement is completed and the improvement fund is closed; <br />thereafter the balance in the investment earnings fund will be <br />transferred to the redemption fund to be used, in the discretion of <br /> <br /> 5 <br /> <br /> <br />