1994-05-17 Resolution 91 - Laserfiche WebLink

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Reserve Fund. The Reserve Fund is required to be maintained in an amount at least equal to the Reserve • Fund Requirement. The Reserve Fund will be used solely for the purpose of paying the principal of and interest on the Bonds if any deficiencies occur in the Sinking Fund, provided, amounts in the Reserve Fund in excess of the Reserve Fund Requirement may be transferred from time to time to the Sinking Fund. Operation and Reserve Fund. The Operation and Reserve Fund will be used only to pay necessary incidental expenses of the Authority, the payment of principal of and interest on the Bonds upon redemption or the purchase price of Bonds purchased in the open market, and if the amount in the Sinking Fund at any time is less than the required amount, the Trustee will 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. Funds to Pay Arbitrage Rebate. Pursuant to the written instructions of the Authority, the Trustee shall establish and maintain such fund or funds and take such other actions as may be necessary to enable the Authority to satisfy the requirements of Section 148(f) of the Internal Revenue Code of 1986, as amended, and the applicable arbitrage regulations; provided, however, that the Trustee shall be under no obligation to make computations of the amount of arbitrage required to be rebated to the federal government of the United States of America. 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 Operation and Reserve Fund to be used for the redemption of Bonds or for the purchase of Bonds. Additional Bonds The Authority covenants in the Trust Agreement that it will not incur any indebtedness secured by the Trust Agreement other than the Bonds unless either (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 C-4