201103788 - Laserfiche WebLink

Browse

201103788 Section 4.06. The Corporation for the benefit of the Bondholders hereby covenants, represents and warrants, so long as this Indenture shall remain in force and effect, that the Corporation shall not take any action which could result in any of the Refunding Bonds being declared invalid or result in the interest on any of the Refunding Bonds becoming subject to federal or state income t�ation. ARTICLE V BOND FUND; REBATE FUND AND ADDITIONAL PAYMENTS Section 5.01. The Project has been sold and leased to the City under the Agreement and the Payments have been assigned to and sha11 be remitted directly by the City to the Trustee and deposited in the Bond Fund, and the entire amount of the Payments is hereby assigned to provide for the payment of the principal of and interest on the Refunding Bonds. Section 5.02. There is hereby created by the Corporation and ordered established with the Trustee a tnist fund to be designated "Bond Fund", which shall be used to pay the interest on and principal of said bonds. Section 5.03. There shall be deposited in the Bond Fund, as and when received, all of the Payments and a11 other monies received by the Trustee under and pursuant to any of the provisions of the Agreement or this Indenture directing such monies to be paid into the Bond Fund. Section 5.04 Monies in the Bond Fund shall be used solely for the payment ofthe interest on the Refunding Bonds and for the retirement of the Refunding Bonds at or prior to maturity. Section 5.05. The Bond Fund shall be in custody of the Trustee, and the Cor�ration hereby authorizes and directs the Trustee to withdraw funds from the Bond Fund in amounts sufficient to meet installments of interest and principal upon the Refunding Bonds when due. The Trustee hereby accepts such authorization and direction. Section 5.06. In the event any bonds sha.11 not be presented for payment when the principal thereof becomes due, if funds sufficient to pay such honds and interest thereon sha11 have been made available to the Trustee for the benefit of the registered owners thereo� all liability of the Corporation to the registered owners thereof for the payment of such bonds or interest thereon, as the case may be, sha.11 forthwith cease, determine and be completely discharged and thereupon it shall be the duty of the Trustee to hold such fund or funds, without liability for interest thereon, for a period of five (5) years after such bonds shall have matured, for the benefit of the registered owners of such bonds, who shall thereafter be restricted exclusively to such funds for any claim of wha.tever nature on their part under this Indenture or on, or with respect to, such bonds. At the expiration of such period, subject to the provisions of Section 8.05 hereo� any unclaimed principal or interest shall be paid to the City and thereafter all claimants shall be restricted exclusively to making claim against the City for such principal or interest. The City shall have no liability for interest on any such funds paid to it and shall not be required to hold such funds in trust nor, in any manner, to segregate such funds on its books. 19