RES 02047 - Laserfiche WebLink

deposit in the Reserve Fund in excess of the Reserve Requirement shall be transferred by the Trustee to the Debt Service Account to be credited as provided herein. or. with the \\Tinen approval of nationally recognized bond counsel. to such other fund or account as may be directed by the City. Section 3.07. Held in Trust. The moneys and investments held by the Trustee under Sections 3.03. 3.04. 3.05 and 3.06 are irrevocably held in trust for the benefit of the O\\TIers. and for the purposes herein specified, and such moneys. and any income or interest earned thereon. shall be expended only as provided in this Indenture. and shall not be subject to levy or anachment or lien by or for the benefit of any creditor of the Trustee or the City. Section 3.08. Commingling of Monevs in Funds. The Trustee is directed by the City to commingle any of the funds held by it pursuant to this Indenture into a separate fund or funds for investment purposes only; provided. however. that all funds or accounts held by the Trustee hereunder shall be accounted for separately notwithstanding such commingling by the Trustee, Section 3,09. Arbitrage Covenant. The City hereby covenants with the Owners of the Bonds that. notwithstanding any other provision of this Indenture. it will make no use of the proceeds of the Bonds which would cause the Bonds or the Prior Obligations to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Internal Revenue Code of 1986, as amended. The Trustee hereby covenants with the Owners of the Bonds that it will comply with the express provisions of this Indenture and will follow the \\Titten directions of the City and. notwithstanding anything to the contrary contained herein. so long as the Trustee shall have complied with the written instructions of the City. if any. with respect to making any rebate to the United States of America. the Trustee shall conclusively be deemed to have complied with its obligations hereunder and shall not be liable if the Bonds become arbitrage bonds. Section 3.10, Pledge of Net Revenues and Other Funds. All of the Net Revenues are hereby irrevocably pledged to the punctual payment of the Debt Service Payment and such Net Revenues shall not be used for any other purpose while any of the Bonds remain outstanding. except as provided herein. This pledge shall constitute a first lien on the Net Revenues for the payment of the Debt Service Payments. and payments in accordance with the terms hereof and thereo f. Section 3.11, ReceiPt and Deposit of Revenues: Revenue Fund. The City covenants and agrees that all Revenues. when and as received. will be received and held by the City in trust for the benefit of Bondowners and payments with respect to Contracts or Parity Bonds. and will be deposited by the City in the Revenue Fund (which the City hereby covenants and agrees to rnaintain so long as any Bonds remain Outstanding) and will be accounted for and held in trust for the benefit of Bondowners and for payments with respect to Contracts and Parity Bonds in the Revenue Fund. All Net Revenues shall be disbursed. allocated and applied solely to the uses and purposes set forth in this Article Ill. -22- Pleasanton Cross Town Indenture (2).DOC