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

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the event of a deficiency for the payment thereof in the Bond Fund. Amounts in the Reserve Fund are valued semi-annually as provided in the Indenture. In accordance with the Loan Agreement,the Company is required to cure any deficiency in the Reserve Fund within thirty(30) days after written notice from the Trustee if the deficiency is determined as a result of a determination of its Value; or(ii) if the deficiency is the result of a withdrawal for transfer to the Bond Fund or the Rebate Fund,within ninety(90)days of such withdrawal. Amounts in the Reserve Fund may be invested in Permitted Investments. Mortgage Under the Mortgage,the Company will grant to the Trustee a mortgage lien on and security interest in the School Facilities, subject to certain Permitted Encumbrances as described in the Mortgage. Under the Mortgage, the Company also will grant a security interest in all leases and rents with respect to the School Facilities. See "APPENDIX F —DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS—THE MORTGAGE" in this Official Statement. Subordination,Non-Disturbance, and Attornment Agreement In connection with the issuance of the Series 2022 Bonds, the Trustee, the Company, and the Charter School will enter into a Subordination, Non-Disturbance, and Attornment Agreement, dated as of August 1, 2022 (the "SNDA"). Pursuant to the SNDA, the Trustee, the Company and the Charter School agree,among other items,that(i)the lien of the Mortgage is at all times superior to the rights of the Charter School under the Leases, (11) the Trustee and the Company will not disturb the Charter School and its use of the School Facilities under the terms of the Leases (even during a foreclosure event) unless the Charter School is in default under the Leases, (iii) if a transfer of the School Facilities occurs, then the purchaser/transferee taking possession of the School Facilities will attorn to the rights of the Charter School under the terms of the Leases (for the balance of the Lease term), and(iv)the Charter School will not take any action to assign, cancel, or terminate the Charter School's obligations under the Leases and the Pledge Agreement, except as expressly permitted. Leases Payments under the Leases will be in amounts sufficient to pay debt service on the Series 2022 Bonds. Pursuant to the Mortgage, the Company will assign its interest in the Leases to the Trustee as additional security for the Series 2022 Bonds.See"APPENDIX F—DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS—THE LEASES" in this Official Statement. Pledge Agreement Under the Pledge Agreement, the Charter School will grant to the Trustee a security interest in certain revenues and assets of the Charter School,including the Pledged Revenues,as security for the Lease Payments which are used to pay the Series 2022 Bonds. "Pledged Revenues" is defined in the Pledge Agreement as the sum of the following: (1) all Gross Revenues less Current Operating Expenses(as defined in the Indenture);plus(2)all of the Charter School's Building Lease Aid;plus(3) all of the Charter School's contributions, grants, gifts, bequests, and devises that are not restricted by the donor as a condition to making contributions, grants, gifts, bequests, and devises in a manner that prevents application to the payment of any amounts payable under the Lease; plus (4) all proceeds of any insurance, indemnity, warranty or guaranty payable to the Charter School from time to time with respect to any of the foregoing, plus(5) all proceeds and products of each of the foregoing. The Charter School will further agree in the Pledge Agreement to establish and maintain a depository account (the "Sweep Account") at the Depository Bank or another FDIC insured banking institution into which there shall be deposited Gross Revenues (as defined in the Pledge Agreement) and 15