Debt Service Reserve Funds. The authorizing documents for many revenue bond issues require that a separate fund be established (the “Reserve Fund”) into which either bond proceeds or revenues are deposited in an amount equal to some designated level, such as average annual debt service on all parity bonds. This Reserve Fund is established for the benefit of the bondholders as additional security for payment on the debt. In most cases, the balance in the Reserve Fund remains stable throughout the life of the bond issue. Reserve Funds, whether funded with bond proceeds or revenues, must be included in all rebate calculations.
Debt Service Reserve Funds. (a) On the Closing Date, Borrower shall deposit with Lender an amount equal to $[ ] (the “Debt Service Reserve Deposit”), which is the amount of Debt Service Shortfalls projected by Lender through the end of calendar year 2009 and which shall be held and disbursed by Lender in accordance with the applicable provisions of this Section 7.5. Amounts so deposited hereunder shall hereinafter be referred to as the “Debt Service Reserve Funds”.
(b) In lieu of making the Debt Service Reserve Deposit, Borrower may either (i) deliver to Lender a Letter of Credit in an amount equal to the Debt Service Reserve Deposit (the “LC Option”) or (ii) deliver to Lender a certificate of Bank Loan Borrower certifying to Lender that (a) there are sufficient funds available to Bank Loan Borrower under the Bank Loan for the purpose of paying Debt Service Shortfalls as projected by Lender through the end of calendar year 2009, (b) Bank Loan Borrower will, in the event of any such Debt Service Shortfalls, borrow such funds pursuant to the Bank Loan and will contribute such funds to Mezzanine B Borrower and that Mezzanine B Borrower will contribute such funds to Borrower and (c) Borrower will use such funds to pay for any such Debt Service Shortfalls (the “Certificate Option”).
(c) In the event Borrower elects to deliver cash under this Section 7.5, Borrower shall have the right, on any Determination Date, to receive a disbursement of amounts in excess of the amount of the Debt Service Shortfalls then projected by Lender through the end of calendar year 2009.
(d) In the event Borrower elects to deliver a Letter of Credit under this Section 7.5 or elects the LC Option on the date hereof, Borrower shall have the right, on any Determination Date, to replace the Letter of Credit previously delivered to Lender with a Letter of Credit in an amount equal to the Debt Service Shortfalls then projected by Lender through the end of calendar year 2009.
(e) On or prior to each Determination Date, Borrower shall deliver to Lender a certificate of Bank Loan Borrower certifying to Lender that (a) there are sufficient funds available to Bank Loan Borrower under the Bank Loan for the purpose of paying for Debt Service Shortfalls as projected by Lender through the end of calendar year 2009, (b) Bank Loan Borrower will, in the event of any such Debt Service Shortfalls, borrow such funds pursuant to the Bank Loan and will contribute such funds to Mezzanine B Borrower and that Mezzanine B Borrower will co...
Debt Service Reserve Funds. Borrower shall deposit with Lender on the Closing Date the sum of $246,000.00 (the “Debt Service Reserve”). Amounts so deposited shall hereinafter be referred to as the “Debt Service Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as the “Debt Service Reserve Account.” The Debt Service Reserve will be available for use by Borrower in the event that Net Cash Flow from the Property for any month shall be less than Debt Service for such month. In lieu of making any required deposits to the Debt Service Reserve Account, Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the Debt Service Reserve Account. All earnings or interest on the Debt Service Reserve Fund shall be and become part of such Debt Service Reserve Fund and shall be disbursed as provided in this Section 7.5. In the event Net Cash Flow equals or exceeds $8,000,000.00 for the preceding twelve (12) consecutive month period, the Debt Service Reserve Funds will be released to Borrower following Borrower’s written request therefor.
Debt Service Reserve Funds. (a) Except as specifically provided below, the amount in each Debt Service Reserve Fund shall be used solely to cure deficiencies in the amount on deposit in the Related Debt Service Fund that may exist after amounts in the Revenue Stabilization Fund have been exhausted. If there are insufficient funds in a Debt Service Fund to pay the principal of and interest on the Related Series of Bonds when due, then the Trustee shall transfer to such Fund the amount of deficiency first from the Revenue Stabilization Fund as provided in Section 8.3 above and then from the Related Debt Service Reserve Fund.
(b) On each DSRF Determination Date, the Trustee shall determine if the balance in each Debt Service Reserve Fund is at least equal to the Related DSRF Requirement; provided that if any of the Bonds Related to a Debt Service Reserve Fund are Bonds described in Section 5.4, then NVTC shall deliver to the Trustee prior to such DSRF Determination Date an Officer's Certificate setting forth the maximum Principal and Interest Requirements on such Bonds determined in accordance with Section 5.4 mutatis mutandis. In making each such determination, investments in each Debt Service Reserve Fund shall be valued as provided in Section 11.3 below or as otherwise provided in the Related Series Supplement. If on any DSRF Determination Date the amount in any Debt Service Reserve Fund (i) is less than its DSRF Requirement, the Trustee shall promptly notify NVTC of such fact and the amount of the deficiency, or (ii) greater than the DSRF Requirement, the Trustee shall promptly notify NVTC of such fact and the amount of the surplus.
(c) Any interest earned from the investment of money in a Debt Service Reserve Fund shall be transferred upon receipt to the Revenue Fund, the Related Debt Service Fund, and/or applied to pay any Rebate Amounts in accordance with the Series Supplements and Tax Regulatory Agreements (as confirmed in an Officer's Certificate) to the extent that such transfer will not cause the balance in the Debt Service Reserve Fund to be less than the Related DSRF Requirement. If on any DSRF Determination Date there exists a surplus in a Debt Service Reserve Fund, the Trustee shall transfer such surplus to the Revenue Fund, the Related Debt Service Fund and/or applied to pay any Rebate Amounts in accordance with the Series Supplements and Tax Regulatory Agreements (as confirmed in an Officer's Certificate); provided, however, that if on any DSRF Determination Date there ...
Debt Service Reserve Funds. (a) Except as specifically provided below, the amount in each Debt Service Reserve Fund shall be used solely to cure deficiencies in the amount on deposit in each Related Debt Service Fund. If there are insufficient funds in the Related Debt Service Fund to pay the principal of and interest on a particular Series of Bonds when due, then the Trustee shall transfer the amount of deficiency from the amount, if any, on deposit in the Related Debt Service Reserve Fund to such Debt Service Fund. The Trustee promptly shall notify HRTAC of the transfer.
(b) On each Reserve Determination Date, the Trustee shall determine if the balance in each of the Debt Service Reserve Funds is at least equal to the Reserve Requirement for the Related Series of Bonds or Subordinate Obligations. In making each such determination, investments in each Debt Service Reserve Fund shall be valued as provided in Section 11.3 or as otherwise provided in the Related Series Supplement. If on any Reserve Determination Date the amount in any Debt Service Reserve Fund is less than its Reserve Requirement, the Trustee shall promptly notify HRTAC of such fact and the amount of the deficiency; provided, however, a deficiency shall not be restored except as provided in Section 8.1(b).
(c) Any interest earned from the investment of money in a Debt Service Reserve Fund shall be transferred upon receipt to the Revenue Fund and/or to the Related Rebate Fund to pay any Rebate Amounts in accordance with the Series Supplements and Tax Regulatory Agreements (as confirmed in an Officer’s Certificate) to the extent that such transfer will not cause the balance in the Debt Service Reserve Fund to be less than its Reserve Requirement. If on any Reserve Determination Date there exists a surplus in a Debt Service Reserve Fund, the Trustee shall transfer such surplus to the Revenue Fund and/or to the Related Rebate Fund to pay any Rebate Amounts in accordance with the Series Supplements and Tax Regulatory Agreements (as confirmed in an Officer’s Certificate); provided, however, that if on any Reserve Determination Date there exists or will exist a surplus in a Debt Service Reserve Fund as the result of the payment at maturity, redemption or defeasance under Article XII of a portion of the Bonds of the Related Series on or as of such Reserve Determination Date, then the Trustee is authorized to transfer the surplus (including to an Escrow Fund for any such Bonds to be redeemed or defeased) as specified in (i) a S...
Debt Service Reserve Funds. In connection with the issuance of any Tax Allocation Debt, the Agency shall establish one or more debt service reserve funds. The amount of such reserve funds shall be determined by the Agency after consultation with Developer, and shall be based upon the Funding Goals and the factors described in Section 4.4(b)(iv). Such reserve funds may be funded with proceeds of Tax Allocation Debt, reserve fund earnings and Net Available Increment in accordance with Sections 3.2(b) and 3.3(b).
Debt Service Reserve Funds. (a) On or before the Closing Date for a Series with respect to which a Debt Service Reserve Fund is required to be established and maintained, the Issuer shall open, at the Corporate Trust Office, one or more trust accounts which shall collectively be the "Debt Service Reserve Fund" for such Series. Any and all moneys received by the Trustee pursuant to Section 2.12(h) or section 2.12(i) (including any Eligible Investments delivered to the Trustee pursuant to said Section 2.12(h) or Section 2.12(i) in lieu of cash), or transferred from the related Collection Account pursuant to Section 8.02(d), together with any Eligible Investments in which such moneys are or will be invested or reinvested during the term of the Indenture, shall be held by the Trustee in the Debt Service Reserve Fund for the related Series as part of the Trust Estate Granted to secure the Bonds of such Series, subject to disbursement and withdrawal as herein provided.
(b) Except as otherwise specified in the related Terms Indenture, so long as no Default or Event of Default shall have occurred and be continuing with respect to the related Series all or a portion of any moneys in a Debt Service Reserve Fund shall be invested and reinvested by the Trustee at the Issuer's direction or pursuant to the provisions of the related Terms Indenture in one or more Eligible Investments bearing interest or sold at discount. The maturities of any such investments pursuant to this Section 8.03(b) on any date shall be such that, on the Business Day immediately preceding either
(i) each Principal Reduction Date for the Bonds of the related Series, if at the time of such investment the Special Redemption provisions of Article X are applicable to such Bonds and the related Terms Indenture requires that amounts in such Debt Service Reserve Fund be available for withdrawal on such Principal Reduction Date, or
(ii) each Payment Date for the Bonds of the related Series, if at the time of such investment such Series is not subject to Special Redemption or if the related Terms Indenture provides that amounts in such Debt Service Reserve Fund need be available for withdrawal only on the Payment Dates for the related Series and that such amounts need not be available on any other Principal Reduction Date. There shall be available in such Debt Service Reserve Fund an amount equal to the aggregate amount, if any, then required to be available for withdrawal from such Debt Service Reserve Fund, as specified in the rel...
Debt Service Reserve Funds. On the Closing Date, Borrower shall deposit with Agent the amount of Seven Million Two Hundred Five Thousand Three Hundred Thirty Three and 43/100 Dollars ($7,205,333.43) (the "Debt Service Reserve Funds"). On each anniversary of the Closing Date, the amount of funds required to be on deposit in the Debt Service Reserve Account (as defined in the Cash Management Agreement) shall be adjusted so that the amount on deposit in the Debt Service Reserve shall equal the product of (a) the cumulative total of the next following twelve (12) months of Debt Service assuming an interest rate equal to LIBOR as determined in accordance with the terms of this Agreement on such anniversary date plus five hundred (500) basis points, subject to a maximum rate of 8.75%, and (b) 33.33% (the "Required Debt Service Reserve Deposit"). If the amount of Debt Service Reserve Funds on deposit in the Debt Service Reserve Account on any such anniversary of the Closing Date shall be less than the amount of the Required Debt Service Reserve Deposit, Borrower shall deposit any such shortfall in the Debt Service Reserve Account within three (3) Business Days of such date. If the amount of Debt Service Reserve Funds on deposit in the Debt Service Reserve Account on any such anniversary of the Closing Date shall be greater than the amount of the Required Debt Service Reserve Deposit, Lender shall direct Agent to disburse such excess amount to or as directed by the Borrower within three (3) Business Days of such date.
Debt Service Reserve Funds. 63 Section 6.8
Debt Service Reserve Funds i. Suitability – Any investment eligible in the Investment Policy is suitable for Debt Service Reserve Funds. Bond resolution and loan documentation constraints and insurance company restrictions may create specific considerations in addition to the Investment Policy.
