85-019 Ordinance - Laserfiche WebLink

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Trustee, a trust fund in the name of the Issuer to be designated "City of North Olmsted, Ohio - Carriage Carpet Co. Construction Fund". All of the sums from the sale of the Bonds, except accrued interest, if any, received upon the sale of the Bonds to the Original Purchaser, shall be deposited in the Construction F und and disbursed by the Trustee in accordance with the Loan Agreement. The Trustee is authorized and directed to make each such disbursement. The moneys to the credit of the Construction Fund (including the proceeds from the sale of investments thereof) shall, pending applications thereof as above set forth, be subject to a lien and charge in favor of the Bondholders. Section 8. Source of Payment - Bond Fund. As provided in the Agreement, N ote Payments, s-u?icient in time and amount to pay the Bond Service Charges as they come due, are to be paid by the B orrower directly to the Trustee for the account of the Issuer and deposited in the Bond Fund. T here 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 - Carriage Carpet Co. B ond F und". There are also hereby created two separate subaccounts in the Bond Fund, to be designated the "P ri ncipal Account" and the "I nterest Account". S ubj ect to the provisions of the Agreement, the Bond r^und 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 tne Agreement, with B ond S ervice 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 B ond Legislation, and except for payments to be deposited into the Reserve Fund or the Rebate Fund, there shall be deposited into the B ond F und, 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 F und moneys transferred from the Reserve F und or otherwise credited to the Bond Fund and any other payments received by the Trustee to be used to repay principal on the B onds, shall be deposited into the Principal Account, and accrued interest, if any, received upon the sale of the B onds 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 B onds, it will deposit or cause to be deposited in the Bond Fund Pledged Receipts sufficient in time and amount to pay the B ond S ervice 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 def ault 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 B ond S ervice Charges any funds other than the Bond Fund, the Reserve Fund and the Construction F und or revenues from any source other than Pledged Receipts. - 10 -