1990-03-07 Minutes - Laserfiche WebLink

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Fund, or if the Sinking Fund and .the Construction Account of the Construction Fund are 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. Sec. 3.03. There is hereby established and created a fund designated as the "South Bend Redevelopment Authority South Bend Central Development .Area Public Improvement Project 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 Sea. 3.07, 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.. The Operation and Reserve Fund may also be • used for purposes stated in Section 5.11. Sec. 3.04. 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 Code and :the 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. Sec. 3.05'. The Trustee shall, at the written direction of the Authority, and subject to Section 5.14, 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 deposited into the Construction Fund until receipt by the Trustee of an Affidavit of Project Completion. as provided in Article III, and thereafter, 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. • IV-10