Indenture of Trust (1996) - Laserfiche WebLink

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(k)repurchase agreements which provide for the transfer of securities from a dealer bank or securities firm (seller/borrower) to the Trustee and the transfer of cash from the Trustee to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Trustee in exchange for the securities at a specified date, which satisfy the following criteria (unless otherwise approved by the Municipal Bond Insurer): (i) repurchase agreements must be between the Trustee and (A) a primary dealer on the Federal Reserve reporting dealer list which falls under the jurisdiction of the Securities Investors Protection Corporation and which are rated "A" or better by Moody's and S&P, or (B) a bank rated "A" or better by Moody's and S&P; (ii) the written repurchase agreement contract must include the following: (A) securities acceptable for transfer, which may be direct U.S. government obligations, or federal agency obligations backed by the full faith and credit of the U.S. government (including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation); (B) the term of the repurchase agreement may be up to 30 days; (C) the collateral must be delivered to the Trustee or a third party acting as agent for the Trustee before or simultaneous with payment (perfection by possession of certificated securities); (D) the Trustee must have a perfected first priority security interest in the collateral; (E) the collateral must be free and clear of third-party liens and,in the case of a broker which falls under the jurisdiction of the Securities Investors Protection Corporation, are not subject to a repurchase agreement or a reverse repurchase agreement; (F) failure to maintain the requisite collateral percentage, after a two day restoration period, will require the Trustee to liquidate the collateral; (G) the securities must be valued weekly, marked-to-market at current market price plus accrued interest and the value of collateral must be equal to 104% of the amount of cash transferred by the Trustee to the dealer bank or securities firm under the repurchase agreement plus accrued interest (unless the securities used as collateral are obligations of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, in which case the collateral must be equal to 105% of the amount of cash transferred by the Trustee to the dealer bank or securities firm under the repurchase agreement plus accrued interest). If the value of securities held as collateral falls below 104% of the value of the cash transferred by the Trustee, then additional cash and/or acceptable securities must be transferred;and (iii) a legal opinion must be delivered to the Trustee to the effect that the repurchase agreement meets guidelines under state law for legal investment of public funds; (1) pre-refunded municipal bonds rated "Aaa" by Moody's and "AAA" by S&P; provided,however,pre-refunded municipal bonds rated by S&P only (i.e.,no Moody's rating) are acceptable if such pre-refunded municipal bonds were pre-refunded with cash, direct U.S.. or U.S. guaranteed obligations or AAA-rated pre-refunded municipal bonds; and (m)any other investments permitted in writing by the Municipal Bond Insurer. "Principal Account" means the account by that name established in the Bond Fund pursuant to Section 5.02(b). "Project" means the project for a Member to be financed with a portion of the proceeds of the Bonds,as more fully described in Exhibit C attached hereto. "Project Fund" means the fund by that name established and held by the Trustee pursuant to Section 3.04. -8-