Orange County NC Website
Browse       Search
L5 <br /> ARTICLE VI <br /> DEPOSIT AND INVESTMENT OF MONEYS IN FUNDS AND ACCOUNTS <br /> From the proceeds of the Bonds, the Trustee shall(i) transfer the accrued interest, if any, to the <br /> Paying Agent for deposit in the Bond Fund and (ii) deposit $[AMouNr] in the Reserve Fund and <br /> $[AMouNT] in the Construction Fund. All moneys held in the Construction Fund, the Revenue Fund, <br /> the Maintenance Reserve Fund and the Reserve Fund shall be invested from time to time by the Trustee <br /> and in the Bond Fund by the Paying Agent as directed by the Corporation in Permitted Investments <br /> subject to the following restrictions: <br /> (a) Moneys in the Construction Fund shall be invested only in obligations which will <br /> by their terms mature not later than the date the Corporation estimates the moneys represented <br /> by the particular investment will be needed for withdrawal from the Construction Fund. <br /> (b) Moneys in the Bond Fund shall be invested only in obligations which will by their <br /> terms mature on such dates as to ensure that before the date of each interest and principal <br /> payment, there will be in the Bond Fund from matured obligations and other moneys already in <br /> the Bond Fund, cash equal to the interest and principal payable on such payment date. <br /> Obligations purchased as an investment of moneys in any fund shall be deemed at all times to be <br /> a part of such fund and the interest accruing thereon and any gain realized from an investment shall be <br /> credited to such fund and any loss resulting from the authorized investment shall be charged to such fund <br /> without liability to the Corporation or any officer thereof, to the Paying Agent or to the Trustee. The <br /> Trustee or the Paying Agent, as the case may be, shall sell at the best price obtainable or present from <br /> redemption any obligation purchased whenever it shall be necessary to do so in order to provide moneys <br /> to meet any payment or transfer from a fund as required by this Indenture. Investments constituting a <br /> part of all funds other than the Bond Fund shall be valued at the then estimated or appraised market value <br /> of the investment or face amount thereof, whichever is lower. Investments constituting a part of the Bond <br /> Fund shall be valued at the face amount thereof. <br /> [End of Article VI] <br /> • 23 <br />