1998-10-19 Resolution 130 - Laserfiche WebLink

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tl • ~ • 2. Unpaid principal on the Bonds due on, before or within thirty (30) days from the date such rental payment becomes due. Any portion of a rental payment remaining after such deposit shall be deposited by the Trustee in the Operation and Reserve Fund provided for in Section 3.06. The Trustee shall from time to time withdraw from such Sinking Fund, or if the Sinking Fund is not sufficient, then from the Operation and Reserve Fund created below, and shall deposit in a special trust fund and make available to itself, sufficient moneys for paying the principal of the Bonds at maturity and to pay the interest on the Bonds as the same falls due. Section 3.02. There is hereby established and created a fund designated as the "South Bend Redevelopment Authority 1998 Operation and Reserve Fund." The Operation and Reserve Fund shall be used only to pay necessary incidental expenses of the Authority (e.g. required audits, appraisals, meetings and reports), the payment of principal, interest and redemption premiums of the Bonds herein described upon redemption as authorized by Article IV hereof or the purchase price of Bonds purchased as authorized by Section 3.06, and if the amount in the Sinking Fund at any time is less than the required amount, the Trustee shall, without any further authorization, 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. Such action by the Trustee shall not constitute a waiver of any other right or remedy the Trustee may have under this Agreement. Incidental expenses shall be paid by the Trustee upon the presentation of an affidavit executed by any two (2) • officers of the Authority, stating the character of the expenditure, the amount thereof, and to whom due, together with the statement of the creditor as to the amount owing. .Section 3.03. There is hereby established and created a fund designated as the "South Bend Redevelopment Authority 1998 Expense Fund." Moneys are being deposited to the credit of the Expense Fund to finance the Cost of Issuance for the Bonds pursuant to Section 2.10 hereof. Moneys on deposit. in the Expense Fund shall be paid out from time to time by the Trustee in order to pay or as reimbursement to the Authority for payment made for the Cost of Issuance. After March 1, 1999, the Trustee may transfer any moneys on deposit in the Expense Fund to the Sinking Fund. Section 3.04. The Trustee shall, at the written direction of the Authority invest all or so much of the funds as is practicable in Qualified Securities, to the extent and in the manner permitted by law. Investment earnings shall be credited to the fund from which the investments were made. The Trustee is authorized to sell any securities so acquired from time to time in order to make the payments authorized in this Agreement. Investment of the Sinking Fund shall mature prior to the time the funds invested will be needed for payment of principal of and interest on the Bonds. Section 3.05. Whenever the amounts contained in the Sinking Fund and the Operation and Reserve Fund are sufficient, together with any other funds deposited with the Trustee by the Authority, to redeem, upon the next redemption date, all Bonds secured hereby then outstanding, the Trustee shall apply the amounts in such Funds to the redemption of such Bonds • pursuant to Article IV hereof. ::ODMA\PCDOCS\SBDOCS 1\24203\2 -14-