04-14-2021 Council Packet - Laserfiche WebLink

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13068670v2 30 Fund thereafter is not less than $50,000, such transfer shall not result in an Event of Default under the Indenture or Loan Agreement; provided, however, that such amounts transferred from the Reserve Fund to the Bond Fund are restored to the Reserve Fund by the Borrower making Loan Repayments pursuant to Section 4.02(d) of the Loan Agreement in six equal monthly installments, each such installment being in an amount equal to one-sixth of the amount originally transferred, and the first such installment being due on the first day of the month following such original transfer from the Reserve Fund. The funds and investments in the Reserve Fund are irrevocably pledged to and shall be used by the Trustee, from time to time, as may be required, for the payment of principal of, premium (if any) on and interest on the Bonds as and when such principal and interest shall become due and payable and, subject only to the provisions of Section 7.05 hereof, for that purpose only; provided, nonetheless, that (i) as provided in Section 4.08 of the Loan Agreement, if investment earnings cause the amount on deposit in the Reserve Fund to exceed the Reserve Requirement, the Trustee shall, not less frequently than semiannually, on or prior to each Interest Payment Date commencing November 1, 2020, transfer the excess to the Bond Fund, and (ii) moneys and investments in the Reserve Fund shall be transferred to the Bond Fund when the moneys and proceeds of investments in the Reserve Fund shall be sufficient (with moneys and proceeds of investments in the Bond Fund) to pay when due the principal of and interest on all outstanding Bonds. Notwithstanding the foregoing, to the extent the Borrower has not deposited sufficient funds with the Trustee for any required rebate payments the Trustee in accordance with Section 4.07(d) of the Loan Agreement, the Trustee is authorized to use funds and investments in the Reserve Fund to pay the amount of any rebate payment due to the United States in respect of the Bonds under Section 148(f) of the Internal Revenue Code. Section 5.04 Investment of Funds. Moneys on deposit to the credit of any Fund established or maintained hereunder shall, upon written request by the Authorized Corporation Representative, be invested by the Trustee in (i) direct obligations of or obligations fully guaranteed by the United States of America, (ii) deposits in interest-bearing time deposits or certificates of deposit or similar arrangements, including repurchase agreements, secured by obligations described in (i) hereof which are in the possession of the Trustee or its agent and with respect to which the Trustee has a valid and perfected security interest free and clear of prior claims of third parties; (iii) obligations issued by any federal agency to the extent that such obligations are either guaranteed by or are direct obligations of the United States of America (other than as provided in (i) hereof) and bonds, debentures, participation certificates or notes issued by the Federal National Mortgage Association; (iv) deposits in interest-bearing time deposits or certificates of deposit or similar arrangements (without regard to whether such deposits or arrangements are insured by the Federal Deposit Insurance Corporation) of any lead bank of a bank holding company which has at least an ‘A-1’ or ‘prime-one’ rating or their equivalents from Standard & Poor’s Ratings Division or Moody’s Investors Services, Inc., or their successors, or certificates of deposit of any national bank if the amount thereof is fully insured by the FDIC, (v) fixed income securities issued by or on behalf of any State or agency, instrumentality or political subdivision thereof or issued by any corporation organized and existing under the laws of any state of the United States of America or the District of Columbia, which securities are rated not less than ‘AA-’ by Standard & Poor’s Ratings Division or ‘Aa3’ by Moody’s Investors Services, Inc.,