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

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ARTICLE V REVENUES AND FUNDS Section 5.01 Application of Proceeds; Source of Payment of Bonds. (a) The Trustee shall apply the proceeds from the initial sale of the Bonds (less original issue discount and net of Underwriter's discount), in the amount of $ , as follows: (i) to the Reserve Fund, an amount equal to $ from the proceeds of the Series A Bonds and $ from the proceeds of the Series B Bonds; (ii) to the Cost of Issuance Fund, an amount equal to $ from the proceeds of the Series A Bonds and $ from the proceeds of the Series B Bonds; together with $ to be deposited by the Company on the Date of Issuance; and (iii) to the Escrow Fund, an amount equal to $ from the proceeds of the Series A Bonds. (b) The Bonds herein authorized and all payments by the Issuer hereunder are not general obligations of the Issuer but arc special limited obligations payable solely from amounts derived from the Trust Estate and, upon an Event of Default and to the extent set forth therein, from the Mortgage, pursuant to the terms thereof. Section 5.02 Creation of Revenue Fund. There is hereby created and established with the Trustee a trust fund to be designated "City of Ramsey, Minnesota Lease Revenue Refunding Bonds (PACT Charter School Project) Series 2013 Revenue Fund." Section 5.03 Payments into the Revenue Fund. The Company will cause the School to deposit when due all rent payments due under the Lease directly to the Trustee for deposit in the Revenue Fund. To assure the full and timely deposit of such rent payments, the Trustee is directed to withdraw from the Sweep Account and deposit in the Revenue Fund the amounts payable by the School under the Lease each month, commencing in , 2013. Any amounts remaining in the Sweep Account after such withdrawal shall be transferred by the Trustee to or at the direction of the School and any earnings realized from investments in the Revenue Fund shall be credited to the Revenue Fund. Section 5.04 Use of Moneys in the Revenue Fund. As and when received each month, the Trustee shall apply any funds from the Revenue Fund in the following priority: (a) first, to the Bond Fund, an amount sufficient to cause the total amount then deposited in the Bond Fund to equal the monthly payment required under Section 4.2(a) of the Loan Agreement and, on a pro rata basis, to any lender on any parity Indebtedness permitted pursuant to Section 6.12(0 of the Loan Agreement, an amount equal to the monthly payment required on such parity Indebtedness; (b) second, into the Rebate Fund, rebate deposits described in the Tax Regulatory Agreement; 25 5600797v 1