RES 94044 - Laserfiche WebLink

Section 6.03. Security Deposit. Notwithstanding any other provision of this Installment Purchase Contract, the City may secure the payment of Installment Payments and interest thereon by a deposit with the Trustee, as escrow holder under an escrow deposit and trust agreement as referenced in Section 9.01 of the Trust Agreement, of: (a) in the case of a security deposit relating to all Installment Payments (and interest thereon), either (i) cash in an amount which, together with amounts on deposit in the Installment Payment Fund and the Reserve Fund, is sufficient to pay all unpaid Installment Payments (and interest thereon), including the principal and interest components thereof, in accordance with the Installment Payment schedule set forth in Exhibit B attached hereto, or (ii) non-callable Federal Securities or pre-refunded non-callable municipal obligations rated "AAA" and "Aaa" by S&P and Moody's, respectively, together with cash if required, in such amount as will, in the opinion of nationally-recognized bond counsel and of an independent certified public accountant, together with interest to accrue thereon and, if required, all or a portion of moneys or non-cailable Federal Securities then on deposit in the Installment Payment Fund and Reserve Fund, be fully sufficient to pay all unpaid Installment Payments on their payment dates so that the applicable share of Bonds shall be defeased as provided for in Section 9.01 of the Trust Agreement; or (b) in the case of a security deposit relating to a portion of the Installment Payments (and interest thereon) both (i) a certificate executed by an officer of the City designating the portion of the Installment Payments (and interest thereon) to which the deposit pertains, and (ii) cash, non-ca!lable Federal Securities or pre-refunded non-ca!fable municipal obligations rated "AAA" and "Aaa" by S&P and Moody's, respectively, in such amount as will, together with interest to be received thereon, if any, and an allocable portion of amounts on deposit in the Installment Payment Fund and Reserve Fund, be fully sufficient in the opinion of nationally-recognized bond counsel and in the opinion of an independent certified public accountant, to pay the portion of the Installment Payments designated in the aforesaid certificate so that the applicable portion of Bonds shall be defeased as provided for in Section 9.01 of the Trust Agreement. In the event of a deposit pursuant to this Section 6.03, all obligations of the City under this Installment Purchase Contract pertaining to the portion of the Project for which the deposit has been made shall cease and terminate, excepting only the obligation of the City to make, or cause to be made, all Installment Payments (and interest thereon), or the portion of Installment Payments (and interest thereon) to which the deposit pertains, from the deposit made by City pursuant to this Section 6.03. Said deposit shall be deemed to be and shall constitute a special fund for the payment of Installment Payments (and interest thereon) in accordance with the provisions of this Installment Purchase Contract. Upon said deposit, the Authority will execute or cause to be executed any and all documents as may be necessary to release the security provided hereby to the extent of such deposit. 21 9406701W.LA i