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

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Section 5.21 Custody of Separate Trust Fund. The Trustee is authorized and directed to hold all Net Proceeds from any insurance proceeds or condemnation awards in excess of 2% of the total Project Costs in a separate trust fund and to disburse such proceeds in accordance with Section 5.2 of the Loan Agreement. If the Company directs that any portion of such Net Proceeds be applied to redeem Bonds, the Issuer covenants and agrees to take and cause to be taken the necessary steps to redeem on the next succeeding redemption date the amount of Bonds so specified by the Company. Section 5.22 Creation of the Rebate Fund. There is hereby created and established with the Trustee a separate trust fund in the name of the Issuer to be designated the "City of Ramsey, Minnesota Lease Revenue Refunding Bonds (PACT Charter School Project) Series 2013 Rebate Fund" which shall be expended in accordance with the provisions hereof and the provisions of the Tax Regulatory Agreement. The Company shall engage or, if the Company fails to so engage, the Trustee shall engage, at the Company's expense, a Rebate Analyst to make the calculations, with respect to the Rebate Fund, and the Trustee shall make deposits and disbursements at the written direction of the Rebate Analyst and shall invest the Rebate Fund at the Company's direction and shall deposit income from said investments immediately upon receipt thereof in the Rebate Fund. The Tax Regulatory Agreement may be superseded or amended by an Amended Tax Regulatory Agreement drafted by, and accompanied by an opinion of bond counsel addressed to the Issuer and the Trustee to the effect that the use of said new Amended Tax Regulatory Agreement will not cause the interest on the Bonds to be includable in the gross income of any recipient thereof for purposes of federal income taxation. Section 5.23 Payments into the Rebate Fund. The Trustee shall make the rebate deposits (but only from amounts in the funds and accounts held by the Trustee hereunder, beginning with the Reserve Fund, and then only if amounts arc not contributed by the Company within 30 days of notice that such deposits are required), as directed in writing by the Rebate Analyst. If a withdrawal from the Rebate Fund is permitted as a result of the computations required by the Tax Regulatory Agreement, the amount withdrawn shall be deposited in the Bond Fund. Records of the determinations required by this Section shall be retained by the Trustee until 6 years after the final retirement of the Bonds. Section 5.24 Use of Moneys in the Rebate Fund. Not later than 60 days after the end of the fifth Bond Year for the Series A Bonds and every 5 years thereafter, the Trustee shall pay to the United States of America (but only from funds provided pursuant to the Loan Agreement and this Indenture) the amount directed in writing by the Rebate Analyst. Not later than 60 days after the final retirement of the Series A Bonds, the Trustee shall pay to the United States of America (but only from funds provided pursuant to the Loan Agreement and the Indenture) 100% (or, if less, the amount directed in writing by the Rebate Analyst) of the balance remaining in the Rebate Fund. Each payment required to be paid to the United States of America pursuant to this Section shall be filed with the appropriate Internal Revenue Service Center. Each payment shall be accompanied by Internal Revenue Form 8038-T (as prepared by the Rebate Analyst), as required by the Code, and, if directed in writing by the Rebate Analyst, a statement (as prepared by the Rebate Analyst) summarizing the determination of the amount to be paid to the United States of America. Section 5.25 Trustee's and Issuer's Responsibility with Respect to the Rebate Fund. Notwithstanding anything to the contrary contained herein, in the Loan Agreement, or in the Tax Regulatory Agreement the Trustee and the Issuer shall have no responsibility for making any determinations as to the amount to be deposited to or withdrawn from the Rebate Fund or the amount required to be rebated to the United States. The Trustee's sole responsibility with respect to all matters relating to rebate shall be to follow the written instructions of the Rebate Analyst and to make payments pursuant to Sections 5.22, 5.23 and 5.24 above as and when instructed in writing to do so by the Rebate Analyst. 29 5600797v1