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

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all Building Lease Aid provided to the Charter School from the Minnesota Department of Education ("MDE"). "Gross Revenues"is defined in the Pledge Agreement as all of the Charter School's(a) income, revenues, funds,money or grants from any funding sources including funding from the State, including but not limited to (i) general education revenue, (ii) transportation revenue, (iii) special education revenue, (iv) compensatory aid, and (v) other state funding or state distributions of federal Title I, Title II, Title III and Title IV funds (including any replacement for the categories described in (i)-(v)), other than Building Lease Aid. Under the terms of the Pledge Agreement, the Charter School has agreed to allow the Trustee to monthly automatically transfer(as assignee of the Company) an amount from the Sweep Account equal to all amounts then-due and payable by the Charter School pursuant to the Lease. Each Lease Payment from the Charter School is structured to include an amount sufficient to pay the principal and interest on the Series 2022 Bonds. In the event that any amount transferred is insufficient to pay the amounts due under the Lease, the amount of any such insufficiency will be transferred to the Trustee from amounts available in the Sweep Account. After the amounts due under the Lease in any month have been fully paid to the Trustee,any amounts in the Sweep Account are available to the Charter School for any authorized purpose. In the event the Charter School moves its depository account to a new depository bank other than the Depository Bank, the new depository bank is required to enter into any account control agreement substantially in the same form as the Account Control Agreement attached to the Pledge Agreement. The Pledge Agreement also requires that all bank accounts of the Charter School be subject to the Account Control Agreement. See "APPENDIX F — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS—THE PLEDGE AGREEMENT"in this Official Statement. The Charter School covenants in the Pledge Agreement to cause all Uniform Commercial Code ("UCC") financing statements related to the Pledge Agreement and all supplements thereto as well as the Lease and other instruments as may be required or recommended from time to time by the Charter School's counsel,by Bond Counsel or by the Trustee(acting at the advice of counsel)to be kept,to be recorded and filed in such manner and in such places as may from time to time be required by law in order to preserve and protect fully the security interests of the beneficial owners of the Series 2022 Bonds and the rights of the Trustee under the Pledge Agreement, the Indenture and the Loan Agreement and, upon advice of counsel, to take or cause to be taken any and all other action necessary to perfect the security interests created by the Pledge Agreement and the other School Documents,all at the expense of the Charter School. Intercreditor Agreement [[TO BE UPDATED AS NEEDED UPON REVIEW OF LOC DOCUMENTS, IF ANY. BORROWER TO CONFIRM AND PROVIDE LOC DOCUMENTS, IF APPLICABLE]] [The Charter School has previously entered into a line of credit agreement with [ ] (the "Depository Bank")for a line of credit in the current amount of up to$[ ] (such loan,as the same may be amended, extended, supplemented or restated from time to time, the "Line of Credit"). The Line of Credit bears interest at a [variable]rate,with an initial rate of[ ]%. The Line of Credit will mature periodically and is anticipated to be renewed each time by the Charter School. The Charter School and the Depository Bank anticipate that the Charter School will continue to renew the Line of Credit with the Depository Bank in the future. The Charter School does not anticipate increasing the Line of Credit amount at its next renewal,but there is no guarantee that the Depository Bank or another lender will agree to grant any increase or agree to the same terms as currently contemplated. Any future increase in the amount of the Line of Credit must comply with the provisions of the Pledge Agreement regarding Short-Term Indebtedness.] The Intercreditor Agreement, dated as of August 1, 2022 (the "Intercreditor Agreement"), by and between the Depository Bank, the Trustee, and the Charter School establishes the priority of security interests granted by the Charter School in favor of the Depository Bank and the Trustee in the event of a 16