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Section 5.05 Investment of Funds. Any moneys held as a part of the Construction Fund, <br />Bond Fund or Reserve Fund shall be invested or reinvested by the Trustee upon the request and <br />direction of the City Representative in any Qualified Investment. In the absence of written <br />direction delivered to the Trustee from the City, the Trustee shall invest any funds in Qualified <br />Investments. The type, amount and maturity of Qualified Investments shall conform to the <br />instnmtions, it' any, in the request of the City Representative. Investments permitted under this <br />Section may be purchased from the Trustee or fi.om any of its affiliates. Obligations so <br />purchased shall be deemed at all times to be a part of the Construction Fund, Bond Fund or <br />Reserve Fund, as applicabIe, but may from time to time be sold or otherwise converted into cash, <br />whereupon the proceeds derived from such sale or conversion shall be ci'edited to the <br />Construction Fund, Bond Fund or Reserve Fund, as the case may be. Any interest accruing on <br />~md any profit realized from such investment shall be credited to the Trust Fund from which the <br />investment has been made (except as otherwiseprovided in Section 5.03(0). The Trustee shall <br />redeem or sell, at the best price obtainable, any obligations so purchased, ~vhenever it shall be <br />necessary to do so in order to provide moneys to meet any payment from the Trust Fund. <br />Neither the Trustee nor the Issuer shall be liable for any loss resulting from any such investment, <br />nor from failure to preserve rights against endorsers or other prior parties to instruments <br />evidencing any such investment. <br /> <br /> Monies credited to any account or fund maintained hereunder, including the Construction <br />Fund, which are uninvested pending disbursement or receipt of proper investment directions or <br />as directed herein, may be deposited to and held in a non-interest bearing demand deposit <br />account established with the Commercial Banking D.epartment of the Trustee or with any bank <br />affiliated with the Trustee, without the pledge of securities to or other collateralization of such <br />deposit accounts. <br /> <br /> The Issuer acknowledges that regulations of the Comptroller of the Currency grant the <br />Issuer the right to receive brokerage confirmations of the security transactions as they occur. <br />The issuer specifically waives such notification to the extent permitted by law and will receive <br />periodic cash transaction statements that will detail all investment transactions. <br /> <br />Section 5.06 Return on Investments. <br /> <br /> (a) In directing investments pursuant to Section 3.8 of the Lease,'the City Will not <br />instruct the Trustee to use (and, in the absence of directions from the City, the Trustee will not <br />use) the proceeds of the Bonds or other sums pledged to the payment of the Bonds, directly Or <br />indirectly, to acquire any securities or obligations the acquisition of which would cause any of <br />thc Bonds to be an "arbitrage bond" as defined in Section 148 of the Code, and for this purpose <br />the Trustee, in order to restrict yield on investments, may invest in SLGS (and accordingly is <br />hereby authorized to act as agent of the Issuer for such purpose) and may assume (unless' <br />otherwise specified in writing by the City or the Issuer) that the yield on the Bonds is <br /> %, as stated in the Nonarbitrage Certificate of the Issuer. The Trustee shall be fully <br />protected in relying on an opinion of Bond Cotinsel with respect to whether the acquisition of <br />an3' securities or obligations would have the effect prohibited by this Section. <br /> <br /> (b) No moneys in any Trust Fund shall be invested in investments which Cause the <br />13onds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. If at any <br /> <br />[763503v{ <br /> <br />99 <br /> <br /> <br />