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

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DOCUMENTS —DEFINITIONS" or in the Indenture, the Loan Agreement, or the Pledge Agreement, unless the context indicates otherwise. The Company and the School have entered into the Lease pursuant to which the School has agreed to make Lease Payments in the amounts and at such times as will be necessary to pay the amounts due from the Company under the Loan Agreement, which amounts arc calculated to be sufficient to pay (i) principal and interest when due on the Bonds; (ii) certain fees of the Issuer with respect to the Bonds; (iii) fees and expenses of the Trustee with respect to the Bonds; (iv) fund certain reserves; and (v) pay certain monthly and annual expenses. The School has agreed in the Pledge Agreement to pledge to the Trustee certain "Adjusted Pledged Revenues" of the School (as hereinafter defined) in order to provide additional security for the timely payments of amounts due under the Lease. The School has also agreed in the Pledge Agreement to establish and maintain a depository account (the "State Aid Revenues Account") with Sunrise Banks, into which all education funding received by the School from the Minnesota Department of Education (including general education funding, Building Lease Aid, other special funds and federal pass - through funding) will be deposited. This State funding is generally disbursed to the School twice monthly on the 15th and last day of each month (or the next preceding Business Day). Under the Pledge Agreement, the School will cause all such disbursements from the State to be deposited in the State Aid Revenues Account. In accordance with the Account Control Agreement, the Trustee is authorized to withdraw from the State Aid Revenues Account the payments due from the School under the Lease and deposit such amounts in the Revenue Fund under the Indenture, and then any amounts remaining in the State Aid Revenues Account after such withdrawal will be transferred by the Trustee to or at the direction of the School. The terms of the State Aid Revenues Account provide that the Trustee will withdraw the lease payments from the State Aid Revenues Account before 12:00 noon on the 201h day of each month. In the event that the first deposit of State funds in any month is insufficient to pay the total Lease Payment due from the School, the Trustee will withdraw the amount of any such deficiency from the second (or succeeding) monthly deposits of State funds to the State Aid Revenues Account until such dcf cicncy is cured. Pursuant to the Pledge Agreement, the School pledges, transfers, grants a security interest in and assigns to the Trustee to secure the payment of Lease Payments, all funds, moneys, grants, or other distributions received by the School from the State of Minnesota with respect to general. student funding, state Building Lease Aid payments, state distributions of federal Title 1 funds, or any other funding sources, after deduction of all such operating expenses of the School (including the current expenses for staff and administrative salaries and benefits) required under State or federal laws to provide required educational program expenditures (such net amount hereinafter referred to as "Adjusted Pledged Revenues"), and any other funds or amounts held in any fund or account established by the School and all right, title and interest of the School in and to any agreements with the State of Minnesota to provide any such Adjusted Pledged Revenues. Said pledge will constitute a lien on and security interest in such Adjusted Pledged Revenues, funds and accounts, and will attach, be perfected and be valid and binding from and after the date of the Pledge Agreement, without any physical delivery thereof or further act. In the event that the deposits and withdrawals from the State Aid Revenues Account are not sufficient to make the School's payments under the Lease, the Trustee will be entitled to collect and receive all of the Adjusted Pledged Revenues, and any Adjusted Pledged Revenues collected or received by the E-8