In a securitization structure, the Overcollateralization (OC) Account is designed to absorb losses and protect senior tranche investors. Excess interest cash flows (after paying senior and mezzanine tranches) are directed to the OC account, subject to an annual maximum inflow cap. Recoveries from defaulted loans are added to the OC account without being capped at the end of the year. Given:

• Asset Pool: 80 loans, each 625,000 (total pool = 50 million).
• SOFR = 5.25%
• Loan Interest Rate: SOFR + 285 bps (total rate = 8.1%).
• Tranches:
  • Senior Tranche: $32 million, pays SOFR + 85 bps (6.1%).
  • Mezzanine Tranche: $11 million, pays SOFR + 375 bps (9%).
  • Equity Tranche: $7 million.
• Defaults:
  • 2023: 0 defaults.
  • 2024: 6 defaults (total defaulted principal = 6 × 625,000 = 3.75 million).
• Recovery Rate: 46% for both years (recovered amounts added to OC at year-end).
• OC Account Rules:
  • 2023 maximum inflow from excess interest: $0.5 million.
  • 2024 maximum inflow from excess interest: $0.75 million.
• Initial OC balance (2022): $0.

Calculate the OC Account balance at the end of 2024 assuming it is reinvested at the end of each year with SOFR.