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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59 Investment of moneys in the Bond Fund shall mature or be redeemable without penalty at the option of the Trustee at the times and in the amounts necessary to provide moneys to pay Bond Service Charges as they become due at stated maturity, by redemption or pursuant to any mandatory sinking fund requirements. Each investment of moneys in the Project Fund and the Bond Fund shall mature or be redeemable without penalty at such time as may be necessary to make payments when necessary from such fund. Subject to any directions from the Authorized Borrower Representative with respect thereto (which directions shall either be written or oral followed in writing), from time to time, the Trustee may sell Project Fund and Bond Fund investments and reinvest the proceeds therefrom in Eligible Investments maturing or redeemable as aforesaid. Any of those investments may be purchased from or sold to the Trustee, the Remarketing Agent or any bank, trust company or savings and loan association affiliated with any of the foregoing. The Trustee shall sell or redeem investments credited to the Bond Fund at the best price reasonably obtainable to and at the times required for the purposes of paying Bond Service Charges when due as aforesaid, and shall do so without necessity for any order on behalf of the Issuer and without restriction by reason of any order. An investment made from moneys credited to the Bond Fund and the Project Fund shall constitute part of that respective fund, and each respective fund shall be credited with all proceeds of sale and income from investment of moneys credited thereto and shall be charged with any loss thereto from such investment. Moneys drawn on the Letter of Credit or the Confirming Letter of Credit, if any, and deposited in the Bond Fund shall be deposited in a separate account in the Bond Fund, shall be held in cash and not be invested and shall be held in such account pending application pursuant to the terms of Section 5.03 or Section 6.15 hereof. Notwithstanding any inconsistent or contrary provision hereof, such funds shall be applied only to the satisfaction of the specific Bond Service Charges for which they were drawn and any funds not so applied shall be paid (i) to the Bank with respect to Moneys drawn on the Letter of Credit, and (ii) to the Confirming Bank with respect to Moneys drawn on the Confirming Letter of Credit, subject to the provisions of Section 5.08 hereof. Moneys deposited in the Remarketing Reimbursement Fund shall be held in cash and not invested. Moneys drawn on the Letter of Credit or the Confirming Letter of Credit, if any, and deposited in the Remarketing Reimbursement Fund shall be deposited in a separate account therein and shall be held in such account pending application pursuant to the terms of Section 5.03 and 6.15 hereof. Section 5.06. Moneys to be Held in Trust.Except where moneys have been deposited with or paid to the Trustee pursuant to an instrument restricting their application to particular Bonds, all moneys required or permitted to be deposited with or paid to the Trustee under any provision of this Indenture, the Agreement, the Letter of Credit or the Confirming Letter of Credit, if any, and to be used to pay Bond Service Charges or the Notes, and any investments thereof, shall be held by the Trustee in trust. Except (a) for moneys deposited with or paid to the Trustee for the redemption of Bonds, a notice of the redemption of which shall have been duly given, (b) for moneys held by the Trustee pursuant to Section 5.07 hereof, and (c) for moneys in the Remarketing Reimbursement Fund, all moneys described in the preceding sentence held by the Trustee shall be subject to the lien hereof while so held.