Agenda - Council - 08/13/2013 - Laserfiche WebLink

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DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be. SECURITY FOR THE BONDS Limited Obligations THE BONDS WILL BE LIMITED OBLIGATIONS OF THE ISSUER AND WILL NOT CONSTITUTE A DEBT, LIABILITY, GENERAL OBLIGATION OR PLEDGE OF THE FULL FAITH AND CREDIT OF THE ISSUER, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF. THE ISSUANCE OF THE BONDS DOES NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE ISSUER, OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF TO PAY THE BONDS FROM TAXES OR TO MAKE ANY APPROPRIATION THEREFOR. NO BONDHOLDER WILL HAVE THE RIGHT TO DEMAND PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS OUT OF ANY FUNDS OR FROM ANY SOURCES OF REVENUE OTHER THAN THOSE EXPRESSLY PLEDGED TO THE PAYMENT OF THE BONDS PURSUANT TO THE INDENTURE. Payments Under the Loan Agreement; Assignment of Loan Agreement Monthly Loan Repayments from the Company are required under the Loan Agreement to be paid directly to the Trustee in amounts that will be sufficient, if paid promptly and in full, to pay when due all principal of and interest on the Bonds. Under the Indenture, the Issuer has pledged its interest in the Loan Agreement (including the payments payable thereunder to the Issuer by the Company, but excluding certain rights of the Issuer to payment of fees, expenses and indemnification) to the Trustee to secure the Bonds. See Appendix E: "THE LOAN AGREEMENT." The Trustee is authorized to exercise the rights of the Issuer and enforce the obligations of the Company under the Loan Agreement. Payments are due from the Company on a full -recourse basis. Reserve Fund On the closing date for issuance of the Series 2013 Bonds, proceeds of the Series 2013 Bonds in an amount equal to the Reserve Fund Requirement will be deposited in the Reserve Fund created under the Indenture and held by the Trustee. Thereafter, unless needed to bring the amount in the Reserve Fund up to the Reserve Fund Requirement, investment income on amounts in the Reserve Fund will be deposited in Bond Fund. Amounts in the Reserve Fund may be used by the Trustee to pay principal of, premium, if any, and interest on the Bonds in the event sums in the Bond Fund are insufficient for such purpose. Amounts in the Reserve Fund are valued semi-annually as provided in the Indenture. In accordance with the Loan Agreement, the Company is required to cure any deficiency in the Reserve Fund within 30 days that occurs as a result of a valuation, and if the deficiency occurs as a result of a withdrawal, the Company is required to restore such withdrawal within 90 days. If amounts in the Reserve Fund are in excess of the Reserve Requirement, such excess amount 34