AgdaPkt 2005-01-24 - Laserfiche WebLink

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The City shall be entitled to receive as a credit against Installment Payments an amount equal to the amount of any balance contained in the Payment Fund prior to the Installment Payment Date for such Installment Payments (excluding money designated for the prepayment of Bonds). All money in the Payment Fund will be used and withdrawn by the Trustee in accordance with the Indenture. Covenant to Maintain and Budget During the Term of the Installment Purchase Contract, the City will maintain and preserve the Enterprise in good repair and working order at all times and will operate the Enterprise in an efficient and economical manner and will pay all Maintenance and Operation Costs of the Enterprise as they become due and payable. Promptly upon the adoption of its budget for each Fiscal Year, the City will file with the Trustee a budget setting forth the estimated Maintenance and Operation Costs of the Enterprise for such Fiscal Year. Reserve Fund General. Under the Indenture, a Reserve Fund is established for the Bonds (the "Reserve Fund"), and will be held in trust by the Trustee. The Reserve Fund shall initially be funded, and will continue to be funded, in an amount equal to the Reserve Requirement. The Indenture defines the term "Reserve Requirement" to mean, as of any date of calculation, the lesser of (i) 10% of the original principal amount of the Bonds, (ii) an amount equal to maximum annual Debt Service payable by the Authority between the date of such calculation and the final maturity of the Bonds, or (iii) 125% of average annual Debt Service payable under the Indenture. Application of Reserve Fund. If, two 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 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. If the Reserve Fund is funded with a letter of credit, surety bond, insurance policy or other comparable credit facility as described below, the Trustee shall take such action as is necessary to either (i) make a drawing under the letter 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 Reserve Fund to the extent of such advance. Transfer of Excess Amounts. If, following valuation or calculation thereof, the amount available and contained in the Reserve Fund (valued as provided in the Indenture) exceeds the Reserve Requirement and if the Trustee does not have actual knowledge of an Event of Default under the Indenture, the Trustee shall withdraw the amount of such excess from the Reserve Fund. The Trustee shall deposit such amount in the Payment Account. Substitution of Reserve Fund Credit Instrument. If at any time the Reserve Fund is funded with cash, the Authority may, [with the prior written consent of the Insurer,] deliver to the Trustee an irrevocable letter of credit issued by a financial institution having unsecured debt obligations rated in the highest rating categories of Moody's and S&P, 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. 11