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

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shall be transferred to the Bond Fend. Amounts in the Reserve Fund may be invested in Permitted Investments. Capital Improvement Fund There is created and established with the Trustee a Capital Improvement Fund. Monthly Deposits in the amount of $6,250 until , 2014, and thereafter in the amount of $ shall be credited to the Capital Improvement Fund in any month the amount held therein is less than $ . Amounts deposited in the Capital Improvement Fund to be held under the Indenture shall be applied by the Trustee not more often than once each month as requested in a Company request only to the payment of items of repair, improvement, and replacement with respect to the Project which constitute capital expenditures under generally accepted accounting principles or which otherwise constitute major periodic repair or maintenance of the Project, such as annual painting or re-carpcting of a section of the Project (as opposed to incidental repairs such as touch-up painting, replacement of individual carpet tiles, etc.). Investment earnings on amounts held in the Capital Improvement Fund shall remain in, and be credited as received to, the Capital Improvement Fund. Amounts on hand in the Capital Improvement Fund shall be transferred by the Trustee to the Bond Fund, as needed, if, on any Interest Payment Date, the amount then on hand in the Bond Fund, after application of any available amounts in the Reserve Fund, is not sufficient to pay the principal and interest then due on the Bonds, whether at maturity or upon redemption or by acceleration. Mortgage Under the Mortgage, the Company will grant to the Trustee a mortgage lien on and security interest in the Schoolhouse. Under the Mortgage, the Company also will grant a security interest in all leases and rents with respect to the Project. The Mortgage will be subject to certain Permitted Encumbrances as described in the Mortgage. See Appendix E: "THE MORTGAGE." Lease Payments under the Lease shall be in amounts sufficient to pay debt service on the Series 2013 Bonds. The Company will assign its interest in the Lease to the Trustee as additional security for the Series 2013 Bonds. See Appendix E: "THE LEASE." Pledge and Covenant Agreement Under the Pledge Agreement, the School will grant to the Trustee a security interest in certain revenues and assets of the School as additional security for the Series 2013 Bonds. The School has further agreed in the Pledge Agreement to establish and maintain a depository account (the "Sweep Account") at Sunrise Bank in Ramsey, Minnesota into which there shall be deposited twice each month all funding provided to the School from the State of Minnesota Department of Education, including but not limited to General Education Revenues, Building Lease Aid, other special funds and pass -through payments of federal education funds. Under the terms of a Payment Authorization with respect to the Sweep Account, there shall be automatically withdrawn by the Trustee (as assignee of the Company as lessor under the Lease) 34