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HomeMy WebLinkAbout0235_234Section 11. That the Bonds, preimum, if any, and interest thereon are and shall be payable solely from and secured by a lien on all revenues and receipts received from the terms and conditions of the Agreement (except for any moneys paid or payable to the corporation for reimbursement or indemnification) and all such receipts and revenues received under and pursuant to the terms and pro- visions of the Agreement are hereby pledged to the payment of the principal installments of, premium, if any, and interest on the Bond. The Agreement pro- vides that the User shall remit the required payments thereunder for the payment of principal installments of, premium, if any, and interest on the Bonds directly to the Bank for the accounts of the Corporation for deposit in the Debt Service Fund referred to in Section 12 hereof, and such provision is hereby expressly approved. Section 12. That ther shall be and there is hereby created by the Corporation and ordered to be established and maintained at the Bank, as a special depository, a separate and special Fund to be designated "Georgetown Industrial Development Corporation Industrial Development Revenue Bond, Series 1984 (The Old Lodge Building Partmership) Debt Service Fund" (herein referred to as the "Debt Service Fund", and all moneys deposited therein shall be used to pay the principal install- ments of, premium, if any, and the interest of the Bonds. All payments and prepayments specified in Articles V and VIII of the Agreement and all other moneys received by the Bank under and pursuant to any of the provisions of the Agreement shall be deposited in the Debt Service Fund, as and when received. Amounts paid into the Debt Service Fund, together with all income or other gain (net of losses) from any investment of any amounts in the Debt Service Fund shall, unless the User shall otherwise direct, become a part of and be credited to the Debt Service Fund. Subject to the provisions of Section 9 of this Resolution, the Corporation hereby covenants and agrees to cause to be deposited, in the Debt Service Fund sufficient sums to promptly meet and pay the principal of and interest and premium, if any, on the Bonds as the same becomes due and payable in accordance with the terms of this Recolution. In the Agreement, the Corporation.authorized the User to provide instructions to the Bank as to the investment and reinvestment of money held as a part of the Debt Service Fund. Pending payment of the amounts of the Debt Service Fund, the Bank is hereby directed to invest and reinvest the undisbursed portion of the Debt Service Fund promptly upon receipt of, and in accordance with, the instructions of the User. Such investments shall be made by the Bank, if and to the xtent permitted by law, in accordance with the provisions of Section 4.5 of the Agreement. As and when any amounts thus invested may be needed for disbursements from the Debt Service Fund, the Bank shall cause a sufficient amount of such investments to be sold or otherwise reduced to cash to the credit of such Fund. The User by its execution of the Agreemen covenants to restrict the investment of moneys in the Debt Service or investment earnings therefrom in such manner and to such extent, if any, as may be necessary, after taking into account reasonable expectations at the time the Bond is delivered to the original purchaser, so the same will not constitute an arbitrage bond under Section 103(c).of ,the Code and the regulations prescribed under that section. i Ji After the principal installments of, premium, if any, and interest on the Bonds have been paid in full (or provision for the full payment thereof has been made as provided in the Resolution) and all compensation and expenses payable to the Bank have been apid, any amounts remaining in the Debt Service Fund shall be paid to the User upon the expiration or sooner termination of the term of the Agreement as provided herein and in Section 10.5 of the Agreement. All moneys deposited with or paid to the Bank for the account of the Debt Service Fund under any provision of this Resolution or the Agreement shall be held in trust for the benefit of the holders of the Bonds and shall be segregated at all times from all other funds of the Corporation or the Bank. Section 13. That the Corporation further covenants, agrees and warrants that: (a) Subject to the provisions of Section 9 hereof, it will duly and punctually pay the principal installments of, premiu, if any, and interest on the Bonds on the dates and in the manner provided herein and in the Bonds according to the true intent and meaning thereof. (b) It will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Resolution, in the Bonds and all proceed- ings pertaining thereto to be performed by it.