MFR Bonds are secured by Matching Fund Revenues payable annually by the U.S. Department of Interior (“Department of Interior”) through the U.S. Treasury, which flow directly to The Bank of New York Mellon Trust Company, N.A., as Special Escrow Agent and Trustee, for deposit to the Pledged Revenue Account to pay debt service on the MFR Bonds.
To further secure the MFR Bonds, the Governor executed an irrevocable letter of instruction to the Department of Interior for the direct transfer of all Matching Fund Revenues directly to the MFR Trustee. The MFR Bonds are also secured by a statutory lien on all Matching Fund Revenues.
Each series of MFR Bonds are further secured by a fully funded Debt Service Reserve Account (12 months of principal and interest payable on all MFR Bonds).