04-14-2021 Council Packet - Laserfiche WebLink

Home Browse Search

13068670v2 29 Corporation, for the purchase of outstanding Bonds on the market at prices not exceeding the redemption price on the next available date for redemption. Notwithstanding the foregoing, the Trustee is authorized to use funds and investments in the Optional Redemption Fund to pay the amount of any rebate due the United States in respect of the Bonds under Section 148 of the Internal Revenue Code, if the Corporation shall have failed to pay or provide for the payment thereof under Section 4.07(d) of the Loan Agreement. Section 5.03 Reserve Fund. There is hereby established and the Trustee shall maintain hereunder, so long as any of the Bonds are outstanding, a separate fund to be designated "City of Little Canada, Minnesota Senior Housing and Healthcare Facilities Revenue Bonds (New Harmony Project) Reserve Fund" (herein called the "Reserve Fund"), into which there shall be made the following deposits: (a) An amount equal to the Reserve Requirement, to be deposited in the Reserve Fund as described in Section 4.01(b) hereof. (b) After the Series 2021D Bonds have delivered and the Reserve Requirement has been met, the Issuer and Trustee shall deposit into the Reserve Fund all moneys and income of the Trust Estate not deposited or required to be deposited in the Bond Fund or Optional Redemption Fund, including all Loan Repayments pursuant to paragraph (d) of Section 4.02 of the Loan Agreement, in order to maintain the funds and investments on deposit in the Reserve Fund in an amount at least equal to the Reserve Requirement, subject, however, to the further provisions of this Section 5.03. (c) All other amounts required or permitted to be deposited into the Reserve Fund under the Loan Agreement. In computing the amount in the Reserve Fund, Qualified Investments shall be valued at face value if purchased at par or at the amortized value if purchased at other than par; provided, however, that such Qualified Investments in the Reserve Fund are required to be valued only on each June 1 and December 1. For purposes of this Section, "amortized value," when used with respect to an obligation purchased at a premium above or at a discount below par, means the value as of any given time obtained by dividing the total premium or discount at which such obligation was purchased by the number of days remaining to maturity on such obligation at the date of such purchase and by multiplying the amount thus calculated by the number of days having passed since such purchase; and (1) in the case of an obligation purchased at a premium by deducting the product thus obtained from the purchase price, and (2) in the case of an obligation purchased at a discount by adding the product thus obtained to the purchase price. Valuation of any particular date shall include the amount of interest then earned or accrued to such date on any moneys or investments in the Reserve Fund. Notwithstanding any other provision of this Indenture or the Loan Agreement to the contrary, in the event of a failure by the Borrower to make Loan Repayments in the amounts or at the times required under Section 4.02(a) or (b) of the Loan Agreement, the Trustee shall on or before any interest payment date transfer from the Reserve Fund to the Bond Fund any amount required to restore the deficiency and, so long as the balance remaining to the credit of the Reserve