1998-10-19 Resolution 130 - Laserfiche WebLink

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THE TRUST A~nEEIVYENT THE FOLLOWING IS A SUMMARY OF CERTAIN PROVISIONS CONTAINED IN THE TRUST AGREEMENT. THIS SUMMARY DOES NOT PURPORT TO BE A COMPREHENSIVE DESCRIPTION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE TRUST AGREEMENT. Creation of Funds and Accounts The Trust Agreement establishes the following funds and accounts to be held by the Trustee: (i) Sinking Fund; (ii) Expense Fund; and (iii) Operation and Reserve Fund. Operation of Funds and Accounts Sinking Fund. The. Trustee will deposit in the Sinking Fund from each rental payment received by the Trustee pursuant to the Lease and from proceeds of rental value insurance which represents lease rental payments under the Lease, all of such rental payment or if less an amount which, when added to the amount in the Sinking Fund on the deposit date, equals the sum of (i) unpaid principal and mandatory sinking fund redemption payments due on the Bonds within eight months after the date such rental payment becomes due, and (ii) interest on the Bonds due within 45 days after the date such rental payment becomes due. Any portion of a rental payment remaining after such deposit will be deposited by the Trustee in the Operation and Reserve Fund. The Trustee will pay from the Sinking Fund the principal of the Bonds at maturity as the same falls due. Expense Fund. The Expense Fund is created and proceeds of the Bonds are to be deposited into the Expense Fund for the purpose of paying the cost of issuance associated with the issuance of the Bonds. After March 1, 1999, the Trustee may transfer any monies undeposited in the Expense Fund to the Sinking Fund. Operation and Reserve Fund. Amounts on deposit in the Operation and Reserve Fund will be used only to pay necessary incidental expenses of the Authority, the payment of principal of and interest on the Bonds upon redemption or the purchase price of Bonds purchased in the open market, and if the amount in the Sinking Fund at any time is less than the required amount, the Trustee will transfer funds from the Operation and Reserve Fund to the Sinking Fund in an amount sufficient to raise the amount in the Sinking Fund to the required amount. Funds to Pay Arbitrage Rebate. Pursuant to the written instructions of the Authority, the Trustee shall establish and maintain such fund or funds and take such other actions as may be necessary to enable the Authority to satisfy the requirements of Section 148(f) of the Internal Revenue Code of 1986, as amended, and the applicable arbitrage regulations; provided, however, that the Trustee shall be under no obligation to make computations of the amount of arbitrage required to be rebated to the federal government of the United States of America.