Bill No. 20-22 Amending Bond Ordinance_City of South Bend, Indiana Variable Rate Economic Development Revenue Bonds, Series 2007 (PEI_Genesis Project)

Home Browse Search

38 calculated at the Maximum Lawful Rate for such period. Any interest that would have been due and payable for any period but for the operation of this clause (ii) shall nonetheless continue to accrue and be payable and shall, less interest actually paid to the Holder or Holders for such period, constitute the “Excess Interest Amount.” If there is any accrued and unpaid Excess Interest Amount as of any date, then the principal amount with respect to which interest is payable shall bear interest at the Maximum Lawful Rate, until payment to the Holder or Holder of the entire Excess Interest Amount. Notwithstanding the foregoing, on the date on which no principal amount hereunder remains unpaid, the Borrower shall pay to the Initial BSBY Rate Bond Purchaser a fee equal to any accrued and unpaid Excess Interest Amount. (xi) Book Entry System. The Book Entry System shall not be in effect with respect to the Bonds. (xii) Direct Payment Provisions. Notwithstanding any provision of this Indenture or the Agreement to the contrary: (A) All loan payments by the Borrower under the Agreement attributable to the principal and redemption or purchase price of, and the interest on, the Bonds, shall be paid directly by the Borrower to the Initial BSBY Rate Bond Purchaser. Whenever any payment of the principal of the Bonds shall be made, whether at maturity or by prior redemption, such payment shall be made by the Borrower to the Initial BSBY Rate Bond Purchaser without presentation and surrender of any Bond, provided that, absent manifest error, the Initial BSBY Rate Bond Purchaser’s record of such payments shall be conclusive and binding on the Borrower and upon any subsequent Holder of the Bonds so paid or redeemed and, in the case of the payment in full of the Bonds, such Holder shall forthwith surrender the Bonds to the Trustee for cancellation. If any Bonds, or any interest or participation therein, are sold or transferred, the Initial BSBY Rate Bond Purchaser shall notify the Issuer, the Trustee and the Borrower in writing of the name and address of the transferee, and it will, prior to delivery of such Bonds, make a notation on such Bonds of the date to which interest has been paid thereon and of the amount of any prepayments made on account of the principal thereof. If the Bonds have been paid in full, the Initial BSBY Rate Bond Purchaser shall notify the Trustee in writing. (B) The Trustee shall have no responsibility with respect to, and shall not be deemed to have any knowledge of, any Event of Default as a result of any failure by the Borrower to make any loan payment directly to the Initial BSBY Rate Bond Purchaser, unless and until the Trustee shall have received written notification from the Initial BSBY Rate Bond Purchaser of such failure, and further shall have no obligation to (i) receive and make any payment of the interest on, or the principal or redemption price of, the Bonds, which payments shall instead be made directly by the Borrower to the Initial BSBY Rate Bond Purchaser or its transferee of which the Initial BSBY Rate Bond Purchaser has provided notice of transfer pursuant to Section 2.13(xii)(A) above, or (ii) provide any notice to any party of any redemption of the Bonds, such notices to be sent directly from the Borrower to all parties entitled to receive such notice as provided under the Indenture (including, for the avoidance of doubt, notice to the Trustee).