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

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Reserve Fund in trust to be applied toward(i)payment of the final principal of the Bonds or toward redemption of Outstanding Bonds when all Bonds are to be redeemed, subject to the limitations set forth above as to the portion of the Reserve Fund that may be applied to payment of the principal of and interest on the Series 2022B Bonds; (ii) for the purposes set forth in Section 8.2 hereof; or (iii) if necessary under the terms of Section 5.8 hereof, for transfer to the Rebate Fund. Any earnings realized from investments in the Reserve Fund shall be credited to the Reserve Fund until the amount therein is equal to the Reserve Fund Requirement,then to the Bond Fund. The Value of the cash and the Permitted Investments in the Reserve Fund shall be determined on each June 1 and December 1 (each a "Valuation Date"),by the Trustee, which may engage the pricing service of any national pricing firm to assist in such determination. The Trustee does not have any duty to independently value any asset or an obligation other than the price provided by pricing services and sources relied upon by the Trustee. If on any Valuation Date,the amount credited to any account of the Reserve Fund is less than ninety-five percent (95%) of the Reserve Fund Requirement with respect to such account as a result of a decline in the market value of investments credited to such account,the Company will deposit to the Reserve Fund,the amount necessary to restore the amount on deposit in such account of the Reserve Fund to an amount equal to the Reserve Fund Requirement with respect to such account within 30 days following the date on which the Company receives notice of such deficiency. If at any time the amount credited to any account of the Reserve Fund is less than one hundred percent (100%) of the Reserve Fund Requirement for such account as a result of amounts in such account of the Reserve Fund having been transferred to the Bond Fund to pay debt service on any series of Bonds, the Company will transfer to such account of the Reserve Fund the amount necessary to restore the amount on deposit in such account to an amount equal to the Reserve Requirement for such account in not more than twelve (12) substantially equal monthly installments beginning with the first Business Day of the month after the month in which such transfer occurred. The Company has no right,title,or interest in amounts on deposit in the Reserve Fund. The Reserve 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 Reserve Fund to pay the principal of and interest on the Bonds as set forth in this Section 5.5, for the purposes set forth in Section 8.2 hereof, or to make transfers to the Rebate Fund, and to transfer earnings or valuation surplus on the Reserve Fund to the Bond Fund, in accordance with this Section 5.5, which authorization and direction the Trustee hereby accepts. In accordance with the requirements of Section 5.16,no security held in the Reserve Fund as a Permitted Investment shall have a final maturity date of more than five (5) years. SECTION 5.6. Creation and Operation of the Costs of Issuance Fund. There is hereby created by the Issuer and ordered established with the Trustee a trust fund to be designated the "Charter School Lease Revenue Bonds (PACT Charter School Project), Series 2022 Costs of Issuance Fund" which shall be used to pay the Issuance Costs incurred in connection with the issuance of the Bonds. On the Date of Issuance of the Series 2022 Bonds, there shall be deposited into the Costs of Issuance Fund proceeds of the Series 2022 Bonds in the amounts set forth in Section 3.1(c) of the Loan Agreement and in Section 5.1(a)(111) hereof. Interest and other income received on investments of Costs of Issuance Fund money shall be transferred to the Bond Fund. Such money 44 735810810