PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

Home Browse Search

Bonds, the amount of such deficiency, to the extent of available funds, shall by transferred from amounts in the Surplus Fund. The moneys and investments in the Subordinate Debt Service Account are irrevocably pledged and shall be used by the Trustee., from time to time, to the extent required, for the payment of interest whenever due and payable on the Subordinate Bonds, and to make up deficiencies in the Rebate Fund, the Taxes and Insurance Fund, the Senior Debt Service Account of the Bond Fund, the Debt Service Reserve Fund, the Repair and Replacement Fund and the Operating Reserve Fund, in such order. Optional Redemption Fund The Trustee shall deposit into the Optional Redemption Fund all amounts deposited for the payment of amounts due upon a redemption of outstanding Bonds(other than because of mandatory sinking fund redemption),and as may be required by any provision of the Loan Agreement or the Indenture. Amounts on deposit to the credit of the Optional Redemption Fund shall be used, first, to make up deficiencies in the Senior Debt Service Account of the Bond Fund (to the extent described in Section 5.02(a) of the Indenture) and, second, for the payment of principal of or, premium, if any, and interest on Bonds as a result of the redemption of outstanding Bonds at the request or direction of the Borrower pursuant to Article III or,at the request of the Borrower, for the purchase of outstanding Bonds on the market at prices not exceeding the redemption price on the next available date for redemption. Debt Service Reserve Fund On the Date of Issuance, the Debt Service Reserve Requirement shall be deposited to the Debt Service Reserve Fund, and thereafter amounts shall be deposited to the Debt Service Reserve Fund as provided in the Indenture. The Trustee shall also deposit into the Debt Service Reserve Fund all installments of Loan Repayments or portions thereof required and all other amounts required to be deposited to the Debt Service Reserve Fund under the Loan Agreement. On any date on which amounts in the Debt Service Reserve Fund are less than the Debt Service Reserve Requirement,the amount of such deficiency(to the extent of available funds and after any transfers required to be made to the Senior Debt Service Account of the Bond Fund or the Taxes and Insurance Fund)shall be transferred: first,from amounts in the Surplus Fund; second,from amounts in the Subordinate Debt Service Account of the Bond Fund; and third, from amounts in the Repair and Replacement Fund. Notwithstanding the obligation to maintain the Debt Service Reserve Requirement,it shall not constitute an Event of Default if the amounts in the Debt Service Reserve Fund are less than the Debt Service Reserve Requirement,provided that the balance of the Debt Service Reserve Fund is equal to at least$285,000.