85-128 Ordinance - Laserfiche WebLink

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AOW There is hereby created by the Issuer and ordered maintained, as a separate deposit account (except when invested as hereinafter provided) in the custody of the Trustee, a trust fund to be designated "City of North Olmsted, Ohio - Don F. Schmidt, Doris L. Schmidt, Alan R. Kaserman and Pauline H. Kaserman Bond Fund". There are also hereby created two separate subaccounts in the Bond Fund, to be designated the "Principal Account" and trie "Interest Account". Subject to the provisions of the Agreement, the Bond Fund and the moneys therein are hereby pledged to and shall be used solely and exclusively for the payment of Bond Service Charges as they fall due at stated maturity or by amortization or redemption, all as provided herein and in the Indenture and the Agreement, with Bond Service Charges representing repayment of principal on the Bonds, whether at maturity, acceleration or by mandatory or optional redemption, being paid only from the Principal Account and with Bond Service Charges representing all other amounts being paid only from the Interest Account, except as provided in Section 8.02 of the Trust Indenture relating to defeasance of the Bonds. Except as otherwise provided in the Agreement, the Mortgage or this Bond Legislation, and except for payments to be deposited into the Reserve Fund, there shall be deposited into the Bond Fund, as and when received, all Pledged Receipts, as follows: all portions of the Note Payments representing a payment of principal, all moneys from the Reserve Fund or investment of Reserve Fund moneys transferred from the Reserve Fund or otherwise credited to the Bond Fund and any other payments received by the Trustee to be used to repay principal on the Bonds, shall be deposited into the Principal Account, and accrued interest, if any, received upon the sale of the Bonds to the Original Purchaser and all other Pledged Receipts shall be deposited into the Interest Account. The Issuer covenants and agrees that, until Payment in Full of the Bonds, it will deposit or cause to be deposited in the Bond Fund Pledged Receipts sufficient in time and amount to pay the Bond Service Charges as the same become due and payable, and to this end the Issuer covenants and agrees that it will diligently and promptly proceed in good faith and use its best efforts to enforce the Agreement and that, should there be an event of default under the Agreement, the Issuer shall fully cooperate with the Trustee and with the Bondholders to fully protect the rights and security of the Bondholders hereunder. Nothing herein shall be construed as requiring the Issuer to use or apply to the payment of Bond Service Charges any funds other than the Bond Fund, the Reserve Fund and the Project Fund or revenues from any source other than Pledged Receipts. -14-