05-13-2020 Council Packet - Laserfiche WebLink

Home Browse Search

12316323v3 21 Section 4.09 Investment of Funds, Credits. The Borrower shall direct the Trustee to invest moneys on deposit to the credit of any Fund or Account maintained under the Indenture in Qualified Investments. Such investments must be permitted by the Act. Investments permitted under this Section may be purchased through or from the Trustee or any of its affiliates. Investments so purchased shall be deemed at all times to be a part of the respective Fund, but may from time to time be sold or otherwise converted into cash, whereupon the proceeds derived from such sale or conversion shall be credited to the respective Fund. Except as hereinafter provided in this Section 4.09, any interest or profit shall be credited to the respective Fund. The Trustee shall redeem or sell any investments so purchased, whenever it shall be necessary to do so in order to provide moneys to meet any payment from any Fund. Neither the Trustee nor the Issuer shall be liable for any loss, fee, tax, or other charge resulting from any such investment, nor from failure to preserve rights against endorsers or other prior parties to instruments evidencing any such investment. Investment of funds pursuant to this Section shall be limited as to amount and yield of investment in such manner that no part of the outstanding Bonds shall be deemed "arbitrage bonds" under Section 148 of the Internal Revenue Code and regulations thereunder. The Trustee shall be entitled to rely on any written direction of the Borrower as to the suitability and legality of the directed investment. The Trustee shall have no responsibility whatsoever to determine whether any investments made pursuant to the Indenture are or continue to be Qualified Investments and shall have no duty or obligation to confirm whether any written investment direction received from the Borrower is in compliance with the [Tax Certificate]. In no event shall the Trustee be deemed to be an investment manager or adviser in respect of any selection of investments hereunder. Notwithstanding any other provision hereof or of the Indenture, earnings credited to the Reserve Fund shall be transferred to the Bond Fund and shall serve as a credit against the obligation of the Borrower to make Loan Repayments under Section 4.02(a) hereof, no less frequently than semiannually on May 1 and November 1 of each year; provided, however, that no such transfer shall be made if the effect thereof would be to cause the amount on hand in the Reserve Fund to be less than the Reserve Requirement, as computed in accordance with Section 5.03 of the Indenture. [The balance of this page intentionally left blank.]