Indenture of Trust (1996) - Laserfiche WebLink

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from a financial institution, the long-term, unsecured obligations of which are rated in the highest rating category by Moody's and S&P, in an amount equal to the Reserve Requirement, upon presentation to the Trustee of such letter of credit, surety bond, bond insurance policy or other form of guaranty from a financial institution,with evidence from the Authority that such letter of credit, surety bond, bond insurance policy or other form of guaranty from a financial institution rated in the highest rating category by Moody's and S&P. Upon such substitution, the Trustee shall transfer amounts on deposit in the Reserve Account to the Bond Fund in an amount equal to the maximum limits or principal amount, as applicable, of such letter of credit, surety bond,bond insurance policy or other form of guarantee. (e) By reason of the allocation of earnings received from the investment on amounts on deposit in the Reserve Account to the Bond Fund to each Member on a pro rata basis (determined by computing such amount using the same percentage as represented such Member's percentage of the Bonds on original issuance),and the distribution of amounts in the Reserve Account to the Members at the termination of their respective Lease Agreements (as described in paragraph (c) above), and because the proceeds of the Bonds are being used to acquire the Lease Agreements,the funding of the Reserve Account is hereby deemed to be a cost of carrying the Bonds for purposes of section 6592.5(b)(2) of the California Government Code. Section 5.06. Application of Redemption Fund. The Trustee shall establish and maintain the Redemption Fund, amounts in which shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium on the Bonds to be redeemed pursuant to Sections 4.01(a) or (b); provided, however, that at any time prior to the selection of Bonds for redemption, the Trustee may apply such amounts to the purchase of Bonds at public or private sale, in accordance with Section 4.06. Section 5.07.Insurance and Condemnation Fund. (a) Establishment of Fund. Upon the receipt of any proceeds of insurance or eminent domain with respect to any portion of the Leased Premises, the Trustee shall establish and maintain a separate Insurance and Condemnation Fund, to be held and applied as hereinafter set forth in this Section 5.07. (b) Application of Insurance Proceeds. Any Net Proceeds of insurance against accident to or destruction of the Leased Premises collected by a Member in the event of any such accident or destruction shall be paid to the Trustee by such Member pursuant to Section 6.1(a) of such Member's Lease Agreement and deposited by the Trustee promptly upon receipt thereof in the Insurance and Condemnation Fund. Such Member shall certify to the Trustee that the Net Proceeds, together with other available funds, will be sufficient to repair the Leased Premises and that such repairs will be completed before the expiration of any rental interruption insurance provided pursuant to the Lease Agreement. If such Member fails to determine and notify the Trustee in writing of its determination,within forty-five (45) days following the date of such deposit, to replace, repair, restore, modify or improve the affected Leased Premises, then such Net Proceeds shall be promptly transferred by the Trustee to the Redemption Fund and applied to the redemption of Bonds allocable to such Member pursuant to Section 4.01(b). All proceeds deposited in the Insurance and Condemnation Fund and not so transferred to the Redemption Fund shall be applied to the prompt replacement, repair,restoration,modification or improvement of the damaged or destroyed portions of the Leased Premises by the affected Member,upon receipt of Written Requisitions of the Member,as agent for the Authority,which: (i)states with respect to each payment to be made (A) the requisition number, (B) the name and address of the person to whom payment is due, (C) the amount to be paid and (D) that each obligation mentioned therein has been properly incurred, is a proper charge against the Insurance and Condemnation Fund,has not been the basis of any previous withdrawal; and (ii) specifies in reasonable detail the nature of the obligation. Any balance of the proceeds -23-