01-27-1988 Council Agenda - Laserfiche WebLink

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2. Pursuant to Section 4.02 of the Loan Agreement, the Company is required to make monthly Basic Payments in the amount of $11,300. Section 2 -2 of the Indenture currently provides that until December 15, 1990, the Basic Payments will accumulate in the Bond Fund and will be used to pay interest to the Bond- holders on each December 15 to and including December 15, 1990, at which time all amounts remaining in the Bond Fund shall be credited to the mandatory redemption of the Bonds in the amount of $300,000 as set forth in Section 2 -2(3) of the Indenture. The parties hereto agree that notwithstanding the foregoing, until December 15, 1990, the monthly Basic Payments shall be applied first to payment of interest on the Bonds on a monthly basis and the remainder to reduce the outstanding principal amount of the Bonds on a monthly basis. Interest on the Bonds shall be calculated on the actual number of days elapsed in a year of 365 days. 3. Notwithstanding Section 2 -2(2) of, and anything else to the contrary contained in, the Indenture, the Registered Bonds may be outstanding in amounts which are not in $5,000 denominations or multiples thereof. As a result of the monthly reduction in principal amount set forth in paragraph 2 of this Supplement, each Bondholder will be required to note on its Bond the amount of principal paid by the Company. 4. Section 3 -5 of the Indenture provides for ,'a mandatory purchase by the Company of the Bonds on June 15, 1990, unless the Bondholder has properly indicated its intention to retain the Bonds following such purchase date. The date of such manda- tory purchase is changed to December 15, 1990. 5. Notwithstanding the optional redemption provisions set forth in Section 3 -1(3) of the Indenture, the Bonds shall also be subject to redemption and prepayment upon the request by the Company to the Trustee on December 15, 1990 at their principal amount plus accrued interest without premium in accord- ance with the provisions of Article Three of the Indenture. 6. The Bondholders have requested that all monthly Basic Payments made by the Company pursuant to Section 4.02 of the Loan Agreement be deposited with FNB, and the Trustee is willing so to permit, but only on condition that the Trustee be indemni- fied by the Bondholders against certain liabilities in connection therewith. The Bondholders do hereby agree to indemnify hold harmless the Trustee of and from any and all loss, and liability and indirectly Y arising out of or resulting directly damage, from: (a) The Company's deposit of monthly Basic Payments with FNB; Page 41