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

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57 The Issuer hereby authorizes and directs the Trustee to draw on the Letter of Credit pursuant to its terms, in the amounts and at the times necessary to pay Bond Service Charges on the Project Bonds (excluding any premium) pursuant to this Section 5.03(C). The Trustee shall draw upon the Letter of Credit in accordance with the terms thereof under the following circumstances: (a) On or before 2:30 p.m., New York City time, on the Business Day prior to any Mandatory Bond Purchase Date or Interest Payment Date (or the maturity date or any date set for a redemption of Project Bonds which is not an Interest Payment Date), and on or before 10:00 a.m., New York City time, on each Bond Purchase Date, the Trustee shall determine the amount necessary to make all required payments of principal of and interest on the Project Bonds or purchase price payments on the next succeeding Mandatory Bond Purchase Date, Interest Payment Date, maturity date or other redemption date or such Bond Purchase Date, and shall present to the Bank the required documents under the Letter of Credit so as to permit the timely transfer of funds in such amount from the Bank to the Trustee for payment of interest on the Bonds on each Interest Payment Date, for payment of the principal of and interest on the Project Bonds when due, whether at maturity or upon prior redemption, or the payment of the purchase price of Project Bonds or Beneficial Ownership Interests when due on the applicable Bond Purchase Date or Mandatory Bond Purchase Date. (b) Upon acceleration of the Project Bonds upon the occurrence of an Event of Default under Section 7.01 hereof, the Trustee, on or before 2:30 p.m., New York City time, on the Business Day prior to the date on which principal and interest shall be due and payable pursuant to the declaration of the acceleration of the Project Bonds pursuant to Section 7.03 hereof, shall present to the Bank the required documents under the Letter of Credit for payment of the entire amount due pursuant to Section 7.03 hereof with respect to the Project Bonds. Under no circumstances shall the Trustee use moneys drawn on the Letter of Credit to pay Bond Service Charges on any Additional Bonds, Pledged Bonds or Bonds held by the Borrower or the Issuer, or to pay premium, if any, on the Project Bonds. The Trustee shall promptly notify the Borrower by oral or telephonic communication confirmed in writing if the Bank has not transferred funds in accordance with the Letter of Credit upon the presentment of any such draft. In calculating the amount to be drawn on the Letter of Credit for the payment of the purchase price of Project Bonds or Beneficial Ownership Interests on a Mandatory Bond Purchase Date or for the payment of principal of and interest on the Project Bonds, whether on an Interest Payment Date, at maturity or upon redemption or acceleration, the Trustee shall not take into account the receipt or potential receipt of funds from the Borrower under the Agreement, or the existence of any other moneys in the Remarketing Reimbursement Fund, the Project Fund or Bond Fund (other than accrued interest, if any received at the time of the issuance and delivery of the Project Bonds), but shall draw on the Letter of Credit for the full amount of such purchase price or the full amount of the principal and interest coming due on the Project Bonds. If sufficient