RES 02047 - Laserfiche WebLink

(b) Upon payment of all Delivery Costs, which shall be determined by a certificate to that effect by an Authorized Officer of the City delivered to the Trustee. or upon the date occurring four (4) months after the Closing Date, whichever occurs first the Trustee shall transfer all funds remaining in the Delivery Costs Fund to the Debt Service Account and the Delivery Costs Fund shall thereupon be closed. Section 3.06. The Reserve Fund: Replenishment. The Trustee hereby agrees to establish and maintain so long as any Bonds are Outstanding the Reserve Fund. The Reserve Fund shall initially be funded, and shall continuously be funded, 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 O~ners on such date. the Trustee shall transfer from the Reserve Fund to the Payment Fund the amount of such insufficiency; 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 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. If, following valuation or calculation thereof, the amount available and contained in the Reserve Fund (valued as provided in Section 11,09 hereof) 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. The Trustee shall deposit such amount in the Debt Service 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 September I 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 Except for such withdrawals, all money in the Reserve Fund shall be used and withdrawn by the Trustee solely for the purpose of rnaking the payments of principal and interest on the Bonds in the event that arnounts on deposit in the Payment Fund are insufficient for such purposes. If amounts on deposit in the Reserve Fund shall. at any tirne. be less than the applicable Reserve Requirement, such deficiency shall be immediately made up by the City from Net Revenues, and the Reserve Fund shall be valued rnonthly until amounts on deposit therein equal the Reserve Requirement. In lieu of rnaking the Reserve Fund deposits in compliance herewith and Section 3.02. or in replacement of moneys then on deposit in the Reserve Fund. the City may 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. Such letter of credit shall have an original term of no less than three (3) years or, if less, the final rnaturity of the Bonds and such letter of -20- Pleasanton Cross Town Indenture (c).DOC