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

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Section 5.11 Payments into the Reserve Fund. On the Date of Issuance, the Trustee shall deposit to the Reserve Fund an amount equal to the Reserve Fund Requirement as provided in Section 3.1(a) of the Loan Agreement and Section 5.01(a)(i) hereof. Thereafter, the Trustee shall deposit in the Reserve Fund the amounts transferred from the Revenue Fund pursuant to Section 5.04(b) and any other moneys paid to the Trustee under the Loan Agreement or this Indenture and required by either of those documents to be, or accompanied by written directions requesting that such moneys be, credited or transferred to the Reserve Fund. Section 5.12 Use of Moneys in the Reserve Fund. Amounts on hand in the Reserve 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 is not sufficient to pay the principal and interest then due on the Bonds, whether at maturity or upon redemption or by acceleration. If not used for that purpose, the Trustee shall hold the Reserve Fund in trust to be applied toward payment of the final Loan Repayment or toward redemption of Outstanding Bonds when all Bonds are to be redeemed or, if necessary under Section 5.23 hereof, for transfer to the Rebate Fund. Any earnings realized from investments in the Reserve Fund shall be credited to the Reserve Fund until the amount therein is equal to the Reserve Fund Requirement, and thereafter to the Bond Fund. The Value of the cash and the Permitted Investments in the Reserve Fund shall be determined between 45 and 6(] days prior to each Interest Payment Date, by the Trustee, which may engage the pricing service of any national pricing firm to assist in such determination. lfthe Value of the cash and the Permitted Investments in the Reserve Fund falls below the Reserve Fund Requirement as of such valuation date, or as a result of the transfer of money to the Bond Fund or the Rebate Fund, the Trustee shall transfer available amounts from the Revenue Fund pursuant to Section 5.04(b) until the amount therein is equal to the Reserve Fund Requirement. If such Value is in excess of the Reserve Fund Requirement, the Trustee shall, upon written notice from the Company, deposit an amount equivalent to the excess in the Bond Fund to be used to pay interest on and principal of the Bonds. The Company has no right, title or interest in amounts on deposit in the Reserve Fund. Section 5.13 Custody of the Reserve Fund. The Reserve Fund shall be in the custody of the Trustee but in the name of the Issuer and the Issuer hereby authorizes and directs the Trustee to withdraw sufficient funds from the Reserve Fund to pay the principal of and interest on the Bonds or to make transfers to the Rebate Fund, and to transfer earnings or valuation surplus on the Reserve Fund to the Bond Fund, in accordance with Section 5.12 hereof, which authorization and direction the Trustee hereby accepts. Section 5.14 Creation of the Costs of Issuance Fund. There is hereby created by the Issuer and ordered established with the Trustee a trust fund to be designated "City of Ramsey, Minnesota Lease Revenue Refunding Bonds (PACT Charter School Project) Series 2013 Costs of Issuance Fund" which shall be used to pay the costs incurred in connection with the issuance of the Bonds. Section 5.15 Payment into the Costs of Issuance Fund. There shall be deposited into the Costs of Issuance Fund from the proceeds of the Series A Bonds, the Series B Bonds and the money provided by the Company the amount set forth in Section 3.1(b) of the Loan Agreement and in Section 5.01(a)(ii) hereof. Interest and other income received on investments of Costs of Issuance Fund moneys shall be transferred to the Bond Fund. Such moneys shall be expended to pay costs of issuance and expenses in accordance with the provisions of Section 4.10 of the Loan Agreement. The Trustee is hereby authorized and directed to issue its checks on the Costs of Issuance Fund for each payment in accordance with Section 4.10 of the Loan Agreement. Any earnings realized from investments in the Costs of Issuance Fund shall be transferred to the Bond Fund. The Trustee shall keep and maintain adequate records pertaining to the Costs of Issuance Fund and all payments therefrom, which shall be open to inspection by the Issuer, and the Company or their 27 5600797v 1