201403666 - Laserfiche WebLink

Browse

ARTICLE IV REBATE FUND 17 201403666 Section 1. Pursuant to the Original Indenture there was established with the Trustee a separate trust fund of the Corporation (for the benefit of the College as well as the Corporation) to be known and designated as the "Rebate Fund" and in such Rebate Fund there is hereby established a separate account for the Series 2014 Bonds (the "2014 Rebate Account "). Any amounts deposited and held in the Rebate Fund shall not be subject to any pledge of this Fourth Supplemental Trust Indenture and Security Agreement but are to be held by the Trustee as set aside and pledged for the benefit of the United States Treasury in accordance with the terms of Section 148 of the Code. Investment earnings on any monies in the Rebate Fund shall be retained therein. Periodically at times sufficient to provide for any required payments to the United States under Section 148 of the Code and applicable regulations thereunder, at the College's expense, there shall be furnished to the Trustee a Rebate Analyst's report showing the excess, if any, of the amount earned on all "nonpurpose investments" related to the Series 2014 Bonds over the amount which would have been earned if such " nonpurpose investments" were invested at a rate equal to the "yield" on the Series 2014 Bonds. Such report shall be made in accordance with the requirements of Section 148 of the Code and any applicable regulations thereunder. Based upon such report and within fifteen days from the furnishing thereof, the Trustee shall transfer from investment earnings on hand or monies paid by the College into the 2014 Rebate Account an amount equal to such excess. From the Rebate Fund the Trustee shall make payments to the United States in accordance with the requirements of Section 103 and Section 148 of the Code and any applicable regulations thereunder. In making transfers and payments to the United States, the Trustee shall be entitled to rely conclusively upon any Rebate Analyst's report or other recognized expert's report and any letter of instruction furnished to the Trustee by recognized bond counsel and may in its discretion consult with counsel selected in the Trustee's discretion. Monies may be withdrawn from the Rebate Fund and transferred to or for the benefit of the College only upon the basis of a Rebate Analyst's report or other recognized expert's report accompanied by an opinion of recognized bond counsel satisfactory to the Trustee showing the amount and legal authority (whether statute, regulation or ruling of the Internal Revenue Service) for such withdrawal. All earnings on excess amounts transferred to the Rebate Fund shall be transferred to the United States as and to the extent required under Section 148 of the Code and applicable regulations thereunder. It is understood, agreed and acknowledged that pursuant to the provisions of the Agreement, the College has agreed to pay as additional payments any amounts required to be deposited to the Rebate Fund, after taking into consideration available funds, if any, an deposit with the Trustee.