AgdaPkt 2003-07-28 - Laserfiche WebLink

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6.A -3 _ the Rebate Fund shall be held by the Fiscal Agent in trust, for payment to the United States Treasury. A separate subaccotmt of the Rebate Account and the Alternate Penalty Account shall be established for each issue of Bonds the interest on which is excluded from gross income for federal income tax purposes. Surplus Fund After making the transfers as required to the Administrative Expense Account Interest Account Principal Account Redemption Account Reserve Account and the Rebate Fund, as soon as practicable after each September 1, and in any event prior to each October 1, the Fiscal Agent shall transfer all remaining amounts in the Special Tax Fund, if any, W the Surplus Fund, pursuant to the terms of the Fiscal Agent Agreement. Moneys deposited in the Surplus Fund may, at the written direction of the District, be used for any lawful purpose of the District permitted under the Rate and Method, the Resolution of Formation (as defined in the Fiscal Agent Agreement), and the Act, including, without limitation, (1) payment of principal, redemption premium, and interest with respect to the Bonds, (ii) deposit to the Reserve Account the amount necessary to meet the Reserve Requirement, (iii) payment of Administrative Expenses, (iv) payment of Project Costs, (v) deposit in the Special Tax Fund for the purpose of reducing the next fiscal year's Special Tax levy, and (vi) to pay refunds of Special Taxes in accordance with the Rate and Method. The amounts in the Surplus Fund are not pledged to the repayment of the Bonds and may be used by the District for any lawful purpose in the manner described in the Fiscal Agent Agreement If the District reasonably expects to use moneys on deposit in the Surplus Fund to pay debt service on Outstanding Bonds, then the District shall provide the Fiscal Agent with written direction to segregate the amount expected to be used to pay debt service into a separate subaccount of the Surplus Fund and to invest such amount in (i) Authorized Investments the interest on which is excludable from gross income under Section 103 of the Code (other than Bonds the interest on which is a tax preference item for purposes of computing the alternative minimum tax of individuals and corporations under the Code), (ii) Authorized Investments at a yield not in excess of the yield on the issue of Bonds to which such amount is expected to be applied, or (iii) Authorized Investments at a yield in excess of the yield on the issue of Bonds to which such amount is expected to be applied; provided, however, that investment at such higher yield shall only be made if the Fiscal Agent is first provided an opinion of Bond Counsel, to the effect that investment at such higher yield will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds which were issued on a tax - exempt basis for federal income tax purposes. Irrvesunetrt of Moneys in Funds Moneys in any fund or account created or established by the Fiscal Agent Agreement and held by the Fiscal Agent will be invested by the Fiscal Agent in Authorized Investments, as directed by an Authorized District Representative, that mature, or, in the case of investment agreements or repurchase agreements, that may be withdrawn at the par value thereof and without penalty, prior to the date on which such moneys are required to be paid out under the Fiscal Agent Agreement See "APPENDIX D - Summary the of Fiscal Agent Agreement - Investments." In the absence of any direction from an Authorized District Representative, the Fiscal Agent will invest, to the extent reasonably practicable, any such moneys in money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Securities Act of 1933, and having a rating by Standard & Poor's of AAAm -G, AAAm or AAm, and, if rated by Moody's, rated Aaa, Aal or Aa2 (including those of the Fiscal Agent and its affiliates or funds for which the Fiscal Agent or affiliates provide investment advisory or other management services). See "APPENDIX D - Summary of the Fiscal Agent Agreement" for a definition of "Authorized Investments." -20-