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

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(g) Maintain unrestricted Cash on Hand in its operation fund such that on each testing date the amount on deposit in such fund shall be equal to or greater than 30 Days Cash on Hand. The School's Cash on Hand shall be tested each year 90 days after the end of the School's Fiscal Year (i.e. on September 28 of each year), commencing the Fiscal Year ending June 30, 2014. The School will provide the Trustee with a certification no later than two weeks after the completion of the School's audit for each Fiscal Year that the Cash on Hand requirement above has been met. The foregoing is subject to the qualification that if applicable state or federal laws or regulations, or the rules and regulations of agencies having jurisdiction (including, without limitation, changes in state or federal funding schedules), shall not permit or enable the School to maintain such level of Cash on Hand, then the School shall, in conformity with the then prevailing laws, rules or regulations, maintain its Cash on Hand equal to the maximum permissible level. If the School has less than 30 Days Cash on Hand on such testing date, it shall constitute an Event of Default if such non-compliance is not cured within 60 days, unless waived by the Majority Bondholder. (h) Maintain on its books, a separate, segregated fund balance to be funded on a best efforts basis from accumulated cash surpluses (the "Fund Balance Account") of the School, if any, in an amount equal to 20% of the budgeted annual operating expenses of the School (the "Fund Balance Account Requirement"). The balance of the Fund Balance Account may be reduced below the Fund Balance Account Requirement by the School solely for the payment of ordinary and necessary expenses of the School (excluding salaries and benefits to staff or administrative personnel) which exceed annual budgeted expenditures by an amount not greater than 20% of the annually budgeted amounts for items including repair and replacements, capital improvements, utilities, educational program expenses, and special assessments; provided, however, that a greater percentage shall be permitted if the School has received the prior written consent of the Majority Bondholder. In the event the Fund Balance Account is reduced below the Fund Balance Account Requirement as of the end of the School's Fiscal Year according to the School's annual audit, the School shall provide notice thereof to the Trustee and EMMA and shall use its best efforts to replenish the Fund Balance Account. (i) [Reserved.] (j) Make all payments due under the Lease on account of debt service on the Bonds and any Additional Bonds prior to any payments of additional rent due under of the Lease other than operating expenses of the School required under State or federal laws to provide required educational program expenditures (including the current expenses for staff and administrative salaries and benefits). In this regard, the Company hereby agrees that it shall apply all amounts received by or on behalf of the School under the Lease to the amounts payable pursuant to Section 4.2 of this Agreement when due. (k) Provide notice to the Issuer, Trustee and EMMA of (i) any notices from the School's sponsor to the School of noncompliance with or determination not to renew the Charter Agreement within 10 days of receipt of such notice by the School and (ii) any 27 5600861v1