RES 94045A - Laserfiche WebLink

The Trustee shall, on a pro rata basis with respect to the portion of the Reserve Fund held in cash and amounts held in the form of letters of credit, surety bonds and insurance policies (calculated by reference to the maximum amounts of such letters of credit, surety bonds and insumnce policies and the amount of the initial deposit of such cash), draw under each letter of credit, surety bond or insurance policy, in a timely manner and pursuant [o the terms of such letter of credit, surety bond or insurance policy to the extent necessary in order [o obtain sufficient funds on or prior to the date such funds are needed as required herein. In the event that the Trustee has notice that any payment of principal or interest on a Bond has been recovered from an Owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Trustee, pursuant to and provided that the terms of the letter of credit, surety bond or insurance policy, if any, securing such Bonds so provide, shall so notify the issuer thereof and draw on such letter of credit, surety bond or insurance policy to the lesser of theextent required or the maximum amount of such letter of credit, surety bond or insurance policy in order to pay such Bond owners the principal and interest so recovered. Following the replacement of moneys then on deposit in the Reserve Fund by an irrevocable letter of credit, surety bond, or insurance policy as provided herein, any moneys on deposit in the Aeserve Fund in excess of the Reserve Requirement shall be transferced by the Trustee to the Payment Fund to be creditedas provided herein, or, with the written approval of nationally recognized bond counsel, to such other fund or account as may be directed by the Authority. Section 3.05. Deposit of Installment Payments. All Installment Payments and interest thereon shall be paid directly by the City to the Trustee, and if received by the Authority at any time shall be deposited by the Authority with the Trustee within one (1) Business Day after the receipt thereof. All Installment Payments and interest thereon received by the Trustee shall be held in trust by the Trustee under [he terms hereof and shall be deposited by it as and when received in the Payment Fund, which fund the Trustee hereby agrees to establish and maintain so long as any Bonds are Outstanding. Section 3.06. Payment Fund. The Trustee shall deposit the money contained ut the Payment Fund at the following respective times in the following respective accounts in the following order of priority in the manner hereinafter provided, each of which fund and account the Trustee hereby agrees to establish and maintain so long as any Bonds are Outstanding, and the money in each of such funds shall be disbursed only for the purposes and uses hereinafter authorized: (a) Debt Service Account. The Trustee, on each Interest Payment Date, shall deposit in the Debt Service Account that amount of money constituting the interest due and payable to but not including such Interest Payment Date. The Trustee, on each May 1, shall deposit in the Debt Service Account that amount of money constituting the principal amount coming due and payable on such date. All moneys in the Debt Service Account shall be used and withdrawn by the Tntstee solely for [he purpose of paying principal of and 14 9406]412.LA1