11-14-01 1. INDENTURE OF TRUST - Laserfiche WebLink

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time obtained by dividing the total premium or discount at which such obligation was purchased by the number of days remaining to maturity for such obligation at the date of such purchase and by multiplying the quotient thus calculated by the number of days having passed since such purchase; and(1) in the case of an obligation purchased at a premium by deducting the product thus obtained from the purchase price,and (2)in the case of an obligation purchased at a discount by adding the product thus obtained to the purchase price. Valuation on any particular date shall include the amount of interest then earned or accrued to such date on any moneys or investments in the Debt Service Reserve Fund. The funds and investments in the Debt Service Reserve Fund are irrevocably pledged to and shall be used by the Trustee,from time to time,as may be required,for the payment of principal of,premium(if any)on and interest on the Senior Bonds as and when the same shall become due and payable, and to that end, amounts shall be transferred to the Senior Debt Service Account of the Bond Fund as provided in Section 5.02. Notwithstanding the foregoing,if amounts on deposit in the Debt Service Reserve Fund exceed the Debt Service Reserve Requirement, at the request of the Borrower,the Trustee shall transfer the excess to the Revenue Fund. Amounts in the Debt Service Reserve Fund also shall be applied to pay the last principal due on outstanding Senior Bonds;provided that with respect to any issue of Bonds,the amount by which the Debt Service Reserve Requirement increased as of the Date of Issuance of the Senior Bonds shall be applied to pay the final maturing principal of such Bonds,but only to the extent that the amount remaining in the Debt Service Reserve Fund immediately after such payment is not less than the Debt Service Reserve Requirement for any Bonds remaining outstanding hereunder immediately after such payment. Investment income on amounts in the Debt Service Reserve Fund,upon receipt by the Trustee,shall be credited to the Debt Service Reserve Fund(but only to the extent amounts therein are less than the Debt Service Reserve Requirement), and otherwise deposited in the - .. . : . . Reserve Fund. Notwithstanding the foregoing, the Trustee, in its discretion, and based upon an opinion of Bond Counsel to the effect that the exclusion from gross income of interest on the Tax-Exempt Bonds shall not be adversely affected thereby,is authorized to use funds and investments in the Debt Service Reserve Fund to pay the amount of any rebate due the United States in respect of any Bonds under Section 148 of the Code if the Borrower shall have failed to pay or provide for the payment thereof under Section 4.01(d)of the Loan Agreement. Amounts withdrawn from the Debt Service Reserve Fund for the payment of principal of or premium or interest on Senior Bonds shall be deemed first drawn from proceeds of the Senior Bonds,and investment income thereon, and then from any other amounts in the Debt Service Reserve Fund. The Borrower shall have no right, title or interest in any amounts from time to time in the Debt Service Reserve Fund. Section 5.05 Surplus Fund. Amounts shall be deposited in the Surplus Fund as provided in Section 5.01.Amounts in the Surplus Fund shall be withdrawn for transfer to the Bond Fund as provided in Section 5.02, for transfer to the Operating Reserve Fund as provided in Section 5.11, for transfer to the Taxes and - 43 -