12-13-2021 FINAL Packet - Laserfiche WebLink

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25 Repayment of draws and payment of expenses and accrued interest thereon at the Late Payment Rate (collectively, “Policy Costs”) shall commence in the first month following each draw, and each such monthly payment shall be in an amount at least equal to 1/12 of the aggregate of Policy Costs related to such draw. Amounts in respect of Policy Costs paid to the Series 2022 Credit Provider shall be credited first to interest due, then to the expenses due and then to principal due. As and to the extent that payments are made to the Series 2022 Credit Provider on account of principal due, the coverage under the Series 2022 Debt Service Reserve Fund Credit Facility will be increased by a like amount, subject to the terms of the Series 2022 Debt Service Reserve Fund Credit Facility. The obligation to pay Policy Costs shall be secured by a valid lien on all LIT Revenues and other collateral pledged as security for the Bonds as set forth herein (subject only to the priority of payment of debt service on the Series 2022 Bonds set forth under this Indenture). All cash and investments in the Debt Service Reserve Fund allocated to the Series 2022 Bonds shall be transferred to the Bond Fund for payment of debt service on the Series 2022 Bonds before any drawing may be made on the Series 2022 Debt Service Reserve Fund Credit Facility or any other Debt Service Reserve Fund Credit Facility credited to the Debt Service Reserve Fund in lieu of cash. Payment of any Policy Costs shall be made prior to replenishment of any such cash amounts. Draws on all Debt Service Reserve Fund Credit Facilities (including the Series 2022 Debt Service Reserve Fund Credit Facility) on which there is Available Coverage shall be made on a pro rata basis (calculated by reference to the coverage then available thereunder) after applying all available cash and investments in the Debt Service Reserve Fund. Payment of Policy Costs and reimbursement of amounts with respect to other Debt Service Reserve Fund Credit Facilities shall be made on a pro rata basis prior to replenishment of any cash drawn from the Debt Service Reserve Fund. For avoidance of doubt, “Available Coverage” means the coverage then available for disbursement pursuant to the terms of the applicable alternative Debt Service Reserve Fund Credit Facility without regard to the legal or financial ability or willingness of the provider thereof of such instrument to honor a claim or draw thereon or the failure of such provider to honor any such claim or draw. (3) Upon a failure to pay Policy Costs when due or any other breach of the terms of this Indenture, the Series 2022 Credit Provider shall be entitled to exercise any and all legal and equitable remedies available to it, including those provided hereunder, other than: (i) acceleration of the maturity of the Series 2022 Bonds; or (ii) remedies which would adversely affect owners of the Series 2022 Bonds. (4) The Indenture shall not be discharged until all Policy Costs owing to the Series 2022 Credit Provider shall have been paid in full. The Issuer’s obligation to pay such amounts shall expressly survive payment in full of the Series 2022 Bonds.