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

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required educational program expenditures (including the current expenses for staff and administrative salaries and benefits) (such net amount hereinafter refen-ed to as "Adjusted Pledged Revenues"), and any other funds or amounts held in any fund or account established by the School. Said pledge shall constitute a lien on and security interest in such Adjusted Pledged Revenues, funds, and accounts, and shall attach and be valid and binding from and after the date of this Agreement, without any physical delivery thereof or further act. (B) The School hereby transfers, grants a security interest in, and assigns to the Trustee, for the benefit of the Holders from time to time of the Bonds, all of the Adjusted. Pledged Revenues and other assets pledged in Subsection (A) of this Section 2 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. The Trustee shall collect and receive all of the Adjusted Pledged Revenues, and any Adjusted Pledged Revenues collected or received by the School shall be deemed to be held, and to have been collected or received, by the School as agent of the Trustee and shall forthwith be paid by the School to the Trustee. (C) The School shall establish and maintain a depository account (the "State Aid Revenues Account") with Wells Fargo Bank, National Association, into which all education funding received by the School from the Minnesota Department of Education (including general education funding, building lease aids, other special funds and federal pass -through funding) shall be deposited pursuant to a depository agreement (the "Account Control Agreement"), attached hereto as EXHIBIT A. This State funding is generally disbursed to the School twice monthly on the fifteenth and last day of each month (or the next preceding Business Day). The School will cause all such disbursements from the State to be deposited in the State Aid Revenues Account. Upon any such deposit, in accordance with the Account Control Agreement, the Trustee is authorized to withdraw from the State Aid Revenues Account all amounts therein, and shall withdraw from the State Aid Revenues Account and deposit to the Revenue Fund under the Indenture the payments due from the School under the Lease. The terms of the State Aid Revenues Account shall provide that if deposits from the State are received before 12:00 noon, Minneapolis, Minnesota time, the Trustee shall withdraw the lease payments before the end of that Business Day. If deposits are received after 12:00 noon, the Trustee is required to make its withdrawal from the State Aid Revenues Account before 12:00 noon on the next Business Day. 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 shall 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 deficiency is cured. (D) 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 shall be entitled to collect and receive all of the Adjusted Pledged Revenues, and any Adjusted Pledged Revenues collected or received by the School shall be deemed to be held, and to have been collected or received, by the School as agent of the Trustee and shall forthwith be paid by the School to the Trustee. 2 5601356v1