Orange County NC Website
Browse       Search
56 <br />(b) Upon default -Upon the occurrence of an Event of Default, <br />SunTrust may withdraw any balance remaining in the Project Fund and apply such <br />balance against outstanding Required Payments. <br />(c) Application of Project Fund balance - SunTrust will apply any <br />amounts to be applied against outstanding Required Payments pursuant to this <br />section (i) first against all Additional Payments then due and payable, (ii) then to <br />interest accrued and unpaid to the prepayment date, and (iu) then to the prepayment, <br />in inverse order of maturity and without premium (notwithstanding any contrary <br />provisions of Section 2.3 of the Financing Contract), of the outstanding principal <br />components of Installment Payments. Such prepayment, however, will not affect <br />any other County payment obligation under the Financing Contract. SunTrust will <br />notify the County of any withdrawal from the Project Fund made under this <br />Section 2.3, and in the notice will describe its application of the funds withdrawn. <br />2.4. Investment. (a) The County and SunTrust agree that money in the <br />Project Fund will be continuously invested and reinvested in a separate account <br />with the North Carolina Capital Management Trust, unless the County provides <br />written direction of an alternate investment. <br />(b) From and after the date that is three years from the Closing Date, the <br />County will not purchase or hold any investment which has a "yield," as <br />determined under the Code, in excess of the "yield" on the County's obligations <br />under the Financing Contract, unless the County has supplied SunTrust with a <br />Bond Counsel Opinion to the effect that such investment will not adversely affect <br />the exclusion from gross income for federal income tax purposes to which the <br />interest components of Installment Payments would otherwise be entitled., <br />(c) Investment obligations acquired with money in the Project Fund shall <br />be deemed at all times to be part of the Project Fund. The interest accruing <br />thereon and any profit or loss realized upon the disposition or maturity of any such <br />investment shall be credited to or charged against the Project Fund. <br />(d) All earnings on moneys in the Project Fund must be used for Project <br />Costs. <br />56 <br />