Agenda - Council - 07/12/2022 - Laserfiche WebLink

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will not adversely affect the exemption from federal income taxation of interest on any Tax- Exempt Bonds and such amounts shall be used by the Trustee to redeem as many Series 2022 Bonds as can be redeemed from such amount. The 2022 Project 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 2022 Project Fund for the purposes set forth in this Section 5.4 hereof and pursuant to Section 5.7 of the Loan Agreement and the Disbursing Agreement, which authorization and direction the Trustee hereby accepts. SECTION 5.5. Creation and Operation of the Reserve Fund. [TO BE DISCUSSED] There is hereby created and established with the Trustee a trust fund in the name of the Issuer to be designated the "Charter School Lease Revenue Bonds (PACT Charter School Project), Series 2022 Reserve Fund" and therein, the "Tax-Exempt Account" and the "Taxable Account." On the Date of Issuance of the Series 2022 Bonds, the Trustee shall deposit to the Reserve Fund an amount equal to the Reserve Fund Requirement as provided in Section 3.1(a) and (b) of the Loan Agreement and Section 5.1(a)(i) and (ii) hereof. Thereafter, the Trustee shall deposit in the Reserve Fund the amounts transferred from the Revenue Fund pursuant to Section 5.2 hereof and any other money 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 money be, credited or transferred to the Reserve Fund. The Reserve Fund Requirement was funded in part with the proceeds of the Series 2022A Bonds in the amount of$ , plus any interest earned thereon, plus any amounts deposited by the Company in the Tax-Exempt Account of the Reserve Fund to satisfy a deficiency in the Reserve Fund. Such amounts on deposit in the Tax-Exempt Account of 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 Series 2022A Bonds, whether at maturity or upon redemption or by acceleration. Such amounts, plus any interest earned thereon, may not be applied to the payment of the principal of or interest on the Series 2022B Bonds in the event of any deficiency in the Bond Fund for the payment thereof. Up to $ (the amount of the Reserve Fund Requirement initially funded with the proceeds of the Series 2022B Bonds) on deposit in the Taxable Account of the Reserve Fund,plus any interest earned thereon, plus any amounts deposited by the Company in the Taxable Account of the Reserve Fund to satisfy a deficiency in the Reserve Fund to the extent such amounts do not consist of the proceeds of Tax-Exempt Bonds, 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 Series 2022B Bonds,whether at maturity or upon redemption or by acceleration. Sums in the Reserve Fund not used to cure any deficit in the Bond Fund for payment of the principal and interest due on the Series 2022A Bonds as provided above or for payment of the principal and interest due on the Series 2022B Bonds as provided above shall be held in the 43 735810810