Amount and Use of Bond Proceeds and Other Money Clause Samples
The "Amount and Use of Bond Proceeds and Other Money" clause defines how much money is raised through bonds and specifies the permitted uses for those funds and any additional monies involved. Typically, this clause outlines the maximum principal amount of bonds issued and details the projects, expenses, or purposes for which the proceeds and related funds may be spent, such as construction, refinancing, or operational costs. Its core function is to ensure transparency and accountability in the allocation and expenditure of bond proceeds, preventing misuse and providing assurance to investors and stakeholders about how funds will be managed.
Amount and Use of Bond Proceeds and Other Money. (a) Draw-Down Loan. The Bonds are being issued as a “draw-down loan,” within the meaning of Regulations §1.150-1(c)(4)(i). In the Purchase Contract, dated , 2014, between the Purchaser and the Issuer, the Purchaser has committed to purchase the Bonds for an aggregate purchase price of $[principal amount] (which amount equals the par amount of the Bonds), and therefore the purchase price of the Bonds is $[principal amount]. On the Issue Date, the Purchaser will advance the Closing Advance, such amount exceeding the lesser of $50,000 or 5% of the purchase price of the Bonds. Thereafter, the Purchaser will make subsequent Principal Advances through , , so that the aggregate of all such Principal Advances, including the Closing Advance, equals $[principal amount]. Accordingly, the Bonds will be treated as a “single issue” under Regulations §1.150-1(c).
Amount and Use of Bond Proceeds and Other Money. (a) Amount of Bond Proceeds. The total maximum proceeds to be received by the County from the sale of the Series 2021A Bonds will be $ , and the total maximum proceeds to be received by the County from the sale of the Series 2021B Bonds, including the Initial Advance and all subsequent Principal Advances, will be $ .
(b) Use of Bond Proceeds. The Bond proceeds are expected to be allocated to expenditures as follows:
(1) $ of proceeds of the Initial Advance will be deposited in the Issuance Costs Fund and used to pay Costs of Issuance.
(2) $ of Bond proceeds will be used to pay costs of the Financed Facility.
Amount and Use of Bond Proceeds and Other Money