(a) All accruing annual contributions authorized by the annual contributions contract to be pledged to the payment of permanent notes as provided by such contract shall be paid or applied as provided in such contract. The fiscal agent, upon receiving any check for payment on account of accruing annual contributions, shall endorse the same in the name and on behalf of the borrower, shall cause the same to be presented for collection in due course and shall deposit the proceeds thereof in the Debt Service Fund. Any accruing annual contributions which may be received by the borrower shall be paid over to the fiscal agent as received, and the borrower covenants and agrees to do so. When money sufficient for the payment and discharge of all bonds and interest claims appertaining thereto have been deposited with the fiscal agent in trust for such purpose, and so long as the HAA is the only holder of all outstanding permanent notes:
(b) The fiscal agent shall promptly pay to the HAA any and all balances (in excess of any amounts appropriated to the payment and discharge of the bonds and interest claims appertaining thereto) in the Debt Service Fund and Advance Amortization Fund.
(c) The borrower shall pay to the HAA all residual receipts of permanently financed projects and all other money which would otherwise be deposited in the Debt Service Fund or Advance Amortization Fund at such time or times as residual receipts and other money would be so deposited.
(d) The HAA shall thereafter apply each accruing annual contribution to the payment of the interest and principal of such permanent notes.
(1979 Code Sec. 4.04.040)