1998-10-19 Resolution 130 - Laserfiche WebLink

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Investment of Funds. Funds will be invested by the Trustee, at the written direction of the Authority, in Qualified Securities, defined in the Trust Agreement as (i) bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the timely payment of the principal of and the interest on which are fully and unconditionally guaranteed by the United States of America or any agency or instrumentality thereof when such obligations are backed by the full faith and credit of the United States of America; (ii) certificates of deposit issued by banks and mutual savings banks incorporated under the laws of the State of Indiana and in national banking associations having their principal banking offices in the State of Indiana, including the Trustee, provided such certificates of deposit do not exceed in the aggregate ten percent (10%) of the combined capital, surplus and undivided profits of any such bank or association and that each such bank or association has a combined capital and surplus of at least $25,000,000, and provided further that such certificates of deposit are insured by the Federal Deposit Insurance Corporation or, to the extent not so insured, collateralized by interest bearing obligations described in clause (i) above in which the Trustee has a perfected security interest; or (iii) repurchase agreements, entered into with banks and mutual savings banks incorporated under the laws of the State of Indiana and in national banking associations having their principal banking offices in the State of Indiana, including the Trustee, that are fully collateralized by interest-bearing obligations described in clause (i) above based upon the market value of such obligations on the day such agreement becomes effective, in which the Trustee has a perfected security interest. Redemption of Bonds. Whenever the amounts contained in the Sinking Fund and Operation and Reserve Fund are sufficient, together with any other funds deposited with the Trustee by the Authority to redeem all Bonds then outstanding, the Trustee will apply the amounts in such funds to the redemption of the Bonds as soon as they may be redeemed. Purchase of Bonds. At the request of the Authority, the Trustee may remove funds from the Expense Account of the Operation and Reserve Fund to be used for the redemption of Bonds or for. the purchase of Bonds. Additional Sonds The Authority covenants in the Trust Agreement that it will not incur any indebtedness secured by the Trust Agreement other than the Bonds unless (i) the financed improvements cannot be completed without unreasonable delay which would threaten a default in the payment of principal of or interest on the Bonds without such additional indebtedness, and such additional indebtedness is payable only from the Operation and Reserve Fund (to the extent that such Fund is not needed to pay necessary incidental expenses of the Authority) and from property and income of the Authority remaining or received after all Bonds have become due and payable and sufficient funds have been provided to pay all principal and interest due on the Bonds and all fees of the Trustee then due and payable, or (ii) such additional indebtedness is payable solely from income of the Authority other than the rental payments provided for in the Lease as long as any of the Bonds are outstanding. This covenant shall not be construed to prohibit the issuance of refunding bonds and the pledging of lease rentals to be received after the redemption of the Bonds. Covenants of the Authority