86-064 Ordinance - Laserfiche WebLink

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i. The Issuer covenants and agrees, whenever the moneys and investments in trie Bond Fund and the Reserve Fund (or otherwise neld by tne 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 Borrowers or the Trustee, the necessary steps to redeem the Bonds on the next succeeaing redemption date or dates for which the required notice of call for redemption may be qiven. Section 8(a). Reserve Fund. 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 - Jack and Jacqueline Boss Reserve Fund" (hereinatter called trie "Reserve Fund"). As provided in Section 4.1(a) of the Agreement, Reserve Fund Payments are to be paid by the Borrowers airectly to the Trustee for the account of the Issuer and deposited in tne 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 the Reserve Requirement. The. Trustee shall invest the moneys in tne Reserve Fund as provided in Section 10 hereof and shall accumulate such income in the Reserve Fund and add such income to the principal thereot until the Reserve Requirement is met, atter which time the Trustee shall credit all further income received from the investment thereot to the Principal Account ot the Bond Fund; provided, however, to the extent that the yield on investments in the Reserve Fund exceed the yield on tne Bonds, the Trustee shall deposit such excess in the Rebate Fund in accordance with the provisions of Section 5A.03 of the Indenture. If, on any Interest Payment Date, the balance in the Bond Fund is insufticient to pay the required Bond Service Charges, then the Trustee shall immediately transfer from the Reserve Fund to the Bond Fund an amount sufficient to make up such deficiency in the Bond Fund. With the approval of the Borrowers, which approval shall not be unreasonably withheld, the Trustee may also make witridrawals from the Reserve Fund to pay the fees and expenses of the Trustee. 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 fund designated "City of North Olmsted, Ohio - Jack and Jacqueline Boss Rebate Fund" (riereinafter called the "Rebate Fund"). Sucri 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 no other person incluaing that ot the Bondholders. Any moneys deposited therein in accordance with the provisions of -17-