RES 94045A - Laserfiche WebLink

If, following valuation thereof, the amount available and contained in the Reserve Fund (valued as provided herein) exceeds the Reserve Requirement and if the City is not then in default under the InstaWnen[ Purchase Contract, the Trustee shall withdraw the amount of such excess from the Reserve Fund. The Trustee shall deposit such amount in the Payment Fund; subject to the requirement that certain investment earnings must be transferred to the Rebate Fund in accordance with instmctions of City as requred hereunder. For purposes of determining the amount on deposit in the Reserve Fund, the Tmstee shall make a valuatiogof the Reserve Fund as of April 1 and October I of each year. Except for such withdrawais all money in the Reserve Fund shall be used and withdrawn by the Trustee solely for [he purpose of making the payments of principal and interest on the Bonds in the event that amounts on deposit in the Payment Fund are insufficient for such purposes. In lieu of making the Reserve Fund deposits in comphance with Sections 3.02, or in replacement of moneys then on deposit in [he Reserve Fund, the Authority may deliver to the Trustee an irrevocable letter of credit issued by a financial institution having unsecured debt obligations rated in one of the two highest Rating Categories of Moody's and Standard & Pools, in an amount, together with moneys, or surety bonds or insurance policies (as described below) on deposit in the Reserve Fund, eyual to the Reserve Requirement. Such letter of credit shall have an original term of no less than three (3) years or, if less, the final maturity of the Bonds and-such letter of credit shall provide by its terms that it may be drawn upon as provided herein. At least one year prior [o the stated expiration of such letter of credit, the Authority shall either (i) deliver a replacement letter of credit, (ii) deliver an extension of the letter of credit for at least an additional year or, if less, [he 5nal maturity of the Bonds, or (iii) deliver to the Trustee a surety bond or an insurance policy satisfying the requirements set forth below: Upon delivery of such replacement letter of credit, extended letter of credit, or surety bond or insurance policy, the Trustee shall deliver the then-effective letter of credit to or upon the written order of the Authority. If the Authority shall fail to deposit a replacement letter of credit, extended letter of credit or surety bond or insurance policy with the Trustee, the Authority shall immediately commence to make monthly deposits with the Trustee so that an amount equal to the Reserve Requirement will be on deposit in the Reserve Fund no later than the stated expiration date of the letter of credit. If an amount equal to the Reserve Requirement as of the date following the expiration of the letter of credit is not on deposit in the Reserve Fund one week prior to the stated expiration date of the letter of credit, the Trustee shall draw on the letter of credit to fund the deficiency resulting therefrom in the Reserve Fund. Additionally, the Authority may with an opinion of nationally recognized bond counsel that such delivery complies with the provisions hereof, deliver to the Trustee a surety bond or an insurance policy securing an amount, together with moneys or letters of credit on deposit in the Reserve Fund, equal to the Reserve Requirement. Such surety bond or insurance policy shall be issued by an insurance company whose unsecured Aebt obligations (or for which obligations secured by such insurance company's insurance policies) are rated in the highest Rating Category of Moody's and S & P. Such surety bond or insurance policy shall have a term of no less than the final maturity of the Bonds. In the even[ that such surety bond or insurance policy for any reason lapses or expires, the Authority shall immediately implement clause (i) or (iii) of the preceding paragraph or make the required deposits to the Reserve Fund. 13 vaosvo~z.ui