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Term of Loan Agreement and Loan Payments
<br />The term of the Loan Agreement (the "Term of Agreement") will commence as of
<br />1, 2013, and, unless sooner terminated as provided in the Loan Agreement, will expire
<br />on 1, 20 , or on the date that all of the Bonds and all fees and charges of the
<br />Issuer, the Trustee, and any paying agents have been fully paid or provision made for such
<br />payment, whichever is later.
<br />The Company agrees to pay to the Trustec for the account of the Issuer during the Term
<br />of Agreement, (i) on or before July 20, 2013, and on or before the 20th day of each month
<br />thereafter through and including November 20, 2013, a sum which, together with investment
<br />earnings and other sums which have either accrued on moneys in the Bond Fund or have been
<br />transferred to the Bond Fund from the Revenue Fund, the Reserve Fund, the Project Fund, or the
<br />Costs of Issuance Fund, which have not been used as such a credit before, equals 1/5 of the
<br />interest due and payable on the Series 2013 Bonds on 1, 2013; and (ii) on or before
<br />the 20th day of each month, commencing 20, 2013 and continuing until the
<br />principal of, premium, if any, and interest on the Bonds will have been fully paid or provision for
<br />the payment thereof will have been made in accordance with the Indenture, a sum which,
<br />together with investment earnings and other sums which have either accrued on moneys in the
<br />Bond Fund or have been transferred to the Bond Fund from the Revenue Fund, the Reserve
<br />Fund, the Project Fund, or the Costs of Issuance Fund, which have not been used as such a credit
<br />before, equals 1/6 of the interest due on the next succeeding Interest Payment Date and 1/12 of
<br />the principal due on the next Payment Date, (iii) commencing July 20, 2013, and thereafter on or
<br />before the 20th day of each month in which the amount held in the Capital Improvements Fund
<br />is less than $500,000, an amount equal to the Monthly Deposit; and (iii) in the event of optional
<br />or mandatory redemption or acceleration, on or before the 1 0th day prior to the selected payment
<br />day, the amount of principal of and interest on the Bonds due on that date, as provided in the
<br />Indenture. Such payments will continue until the principal of, premium, if any, and interest on
<br />the Bonds have been fully paid or provision for the payment thereof has been made in
<br />accordance with the Indenture.
<br />The obligation of the Company to make the foregoing payments is absolute and
<br />unconditional and is not subject to set-off, abatement, counterclaim, or recoupment.
<br />In addition, during the Term of Agreement, the Company is required to pay the Issuer's
<br />fee, the reasonable fees and expenses of the Trustee and any paying agents, and the reasonable
<br />expenses of the Issuer related to the issuance of the Bonds, and the Company will make
<br />payments into the Reserve Fund as required in the Loan Agreement and in the Indenture at any
<br />time there is a deficiency.
<br />Payment of Cost
<br />The Company is authorized to direct the Trustee, by certificates of the Company
<br />submitted to the Trustee, on which the Trustee may conclusively rely, to pay, or to reimburse the
<br />Company for its payment of, costs as incurred by the Company in acquiring the Project. If the
<br />Project Fund is not sufficient to pay all costs incurred in completing the Project the Company
<br />will, pursuant to the Lease, cause the School to complete the Project and to pay all costs incurred
<br />without further reimbursement.
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