85-019 Ordinance - Laserfiche WebLink

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0. , The Issuer covenants and agrees, whenever the moneys and investments in the B ond F und and the Reserve Fund (or otherwise held by the Trustee for such purpose) are sufficient in amount to redeem the entire principal amount of the Bonds then outstanding and to pay interest to accrue thereon to the date or dates of such redemption, and any applicable premiums, to take and cause to be taken, upon notification by the B orrower or the Trustee, the necessary steps to redeem the Bonds on the next succeeding redemption date or dates for which the required notice of call for redemption may be given. Section 8(a). Reserve F und. 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 - Carriage Carpet Co. Reserve Fund" (hereinafter called the "Reserve F und"). As provided in Section 4.1 (d) of the Agreement, Fteserve Fund Payments are to be paid by the B orrower directly to the Trustee for the account of the Issuer and deposited in the Reserve Fund. There shall be deposited or credited to the Reserve Fund the Reserve Fund Payments, and income earned on the investment of moneys credited to such Reserve Fund, until the balance in the Reserve Fund is equal to an amount equal to the lesser of maximum annual debt service or 125$ of average annual debt service on the Bonds. Until the principal amount of the Reserve Fund shall total the lesser of maximum annual debt service or 125$ of average annual debt service on the Bonds subject to the provisions of Section 8(b) hereof, the Trustee shall invest the moneys in the Reserve F und as provided in Section 10 hereof and shall accumulate such income in the Reserve Fund and add such income to the principal thereof. When the principal amount of the Reserve F und shall aggregate the lesser of maximum annual debt service or 125$ of average annual debt service on the B onds, the Trustee shall credit all further income received from the investment thereof to the Principal Account of the Bond Fund, It, on any Interest Payment Date, the balance in the B ond F und is insufficient to pay the required B ond S ervice Charges, then the Trustee shall immediately transfer from the Reserve F und to the B ond F und an amount sufficient to make up such deficiency in the Bond Fund. With the approval of the B orrower, which approval shall not be unreasonably withheld, the Trustee may also make withdrawals from the Reserve Fund to pay the fees and expenses of the Trustee. After any such transfer as aforesaid, the Trustee shall again receive and credit Reserve F und Payments to the Reserve F und until the principal amount thereof shall again total the lesser of maximum annual debt service or 125$ of average annual debt service on the Bonds. Section 8(b). Rebate Fund. There is hereby created by the Issuer and ordered maintained, as a separate deposit account in the custody of the Trustee, a trust/escrow fund designated "Carriage Carpet Co. Rebate F und" (the "Rebate Fund"). Such Rebate Fund shall not be subject to the lien or encumbrance of the Indenture, but shall be held as in trust, for the benefit of the United States of America, and shall be subject to the claim of na other person including that of the Bondholders. Any moneys deposited therein in accordance with the provisions of Section 4.14 of the Indenture shall be used for no other purpose than payments to the United States Treasury, at the time and in the manner and amount specified in such Section 4.14. Section 9. Covenants of Issuer. In addition to other covenants of the Issuer in the B ond Legislation and the Indenture, the Issuer further covenants and agrees as follows: - 11 -