Agmt15 City of RWC Public Financing Authority Water Revenue Refunding Bonds

Browse Search

funded, except as provided below, in an amount equal to the Reserve Requirement. The Trustee shall hold the Reserve Fund in trust and shall apply moneys in the Reserve Fund in accordance with the following provisions. If, two (2) Business Days prior to any Interest Payment Date, the money in the Payment Fund does not equal the amount required to be paid to the Bond Owners on such Interest Payment Date, the Trustee shall transfer from the Reserve Fund to the Payment Fund the amount of such insufficiency to make delinquent Installment Payments on behalf of the City; provided, if the Reserve Fund is funded with a letter of credit, surety bond, insurance policy or other comparable credit facility as described below, the T�ustee shall take such action as is necessary to either (i) make a drawing under the lette� of credit or (ii) make a claim under the surety bond or insurance policy, respectively, so that the amount of such insufficiency is paid or available to the Trustee on such Interest Payment Date under the terms of such instrument. Upon receipt of any delinquent Installment Payment or portion thereof with respect to which moneys have been advanced from the Reserve Fund, such Installment Payment or portion thereof shall be deposited in the Resenre Fund to the extent of such advance. If, following valuation or calculation there�f, the amount available and contained in the . Reserve Fund (valued as provided in Section 1p.09 hereofl exceeds the Reserve Requirement and if the Trustee does not have actual knowledge of an Event of Default hereunder, the Trustee shall withdraw the amount of such excess from the Reserve Fund, and the Trustee shall deposit such amount in the Payment Account. For purposes of determining the amount on deposit in the Reserve Fund, the Trustee shall make a valuation of the Reserve Fund as of January 1 of each year. Except for such withdrawals, all money in the Reserve Fund shall be used and withdrawn by the Trustee solely for the purpose of making the payments of principal and interest on the Se�ies 2015 Bonds in the event that amounts on deposit in the Payment Fund are insufficient for such purposes, or to make the final payments of principal of or interest on the Bonds. In the event the 2007 Bonds are no longe� outstanding under the terms of the 2007 Indenture, or the 2007 Indenture and the 2007 Installment Purchase Contract are amended to delete the requirement of a reserve fund for the 2007 Bonds, the Reserve Fund may be terminated in the sole discretion of the Authority, such determination evidenced in Certificate of the Authority filed with the Ciry and the Trustee. In such event, amounts on deposit in the Reserve Fund may be transferred to the Redemption Account to redeem Bonds, or may be used for any other lawful purpose which, in the opinion of Bond Counsel delivered to the • Authority and the Trustee, would not cause interest on the Bonds to become includable in gross income for federal income tax purposes, all as set ,forth in a Certificate of the Authority. In lieu of making the Reserve Fund deposits in compliance herewith and Section 3.02, or in replacement of moneys then on deposit in the Reserve Fund, the Authority may deliver to the Trustee an irrevocable letter of credit issued by a financial institution having unsecured debt obligations at the time of delivery of such letter of credit rated not less than the current rating categories of Moody's and S&P on the Series 2015 Bonds, in an amount, together with moneys, or surety bonds or insurance policies (as described below) on deposit in the Reserve. Fund, equal to the Reserve Requirement. Such letter of credit shall have an original term of no less than three (3) years or, if less, the final maturity of the Se�ies 2015 Bonds and such letter of credit shall provide by its terms that it may be drawn upon as provided herein. At least one year prior to the stated expiration of such letter of credit, the Authority shall either (i) deliver a replacement letter of credit, (ii) deliver an extension of the letter of c�edit for at least an additional year or, if less, the fina) maturity of the Series 2015 Bonds, or (iii) deliver to the � 20