Common use of Debt Service Reserve Funds Clause in Contracts

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 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 DSRF 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 Series Supplement (and confirmed in an Officer's Certificate) or (ii) an Officer's Certificate. (d) In lieu of maintaining and depositing money or securities in a Debt Service Reserve Fund, NVTC may deposit with the Trustee a DSRF Credit Facility in an amount equal to all or a portion of the applicable DSRF Requirement. Any DSRF Credit Facility will permit the Trustee to draw or obtain under it for deposit in the Debt Service Reserve Fund amounts that, when combined with the other amounts in such Fund, are not less than the applicable DSRF Requirement. (1) The Trustee will make a drawing on or otherwise obtain funds under any DSRF Credit Facility before its expiration or termination (i) whenever money is required for the purposes for which Debt Service Reserve Fund money may be applied and (ii) unless such DSRF Credit Facility has been extended or a qualified replacement for it delivered to the Trustee, in the event NVTC has not deposited immediately available funds equal to the applicable DSRF Requirement at least two Business Days preceding the expiration or termination of such DSRF Credit Facility. (2) If NVTC provides the Trustee with a DSRF Credit Facility as provided in this subsection, the Trustee will transfer the corresponding amount of funds then on deposit in the applicable Debt Service Reserve Fund to NVTC, provided NVTC delivers to the Trustee (i) an Opinion of Bond Counsel that such transfer of funds will not adversely affect the excludability from gross income for purposes of federal income taxation of interest on any Bonds the interest on which was excludable on the date of their issuance and (ii) NVTC covenants to comply with any directions or restrictions contained in such opinion concerning the use of such funds.

Debt Service Reserve Funds. (a) Except as specifically provided belowOn the Closing Date, Borrower shall deposit with Lender an amount equal to $11,797,746.00 (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 dueDeposit”), then the Trustee shall transfer to such Fund which is the amount of deficiency first from Debt Service Shortfalls projected by Lender through the Revenue Stabilization Fund end of calendar year 2009 and which shall be held and disbursed by Lender in accordance with the applicable provisions of this Section 7.4. Amounts so deposited hereunder shall hereinafter be referred to as provided in Section 8.3 above and then from the Related “Debt Service Reserve FundFunds”. (b) On each DSRF Determination Date, In lieu of making the Trustee shall determine if the balance in each Debt Service Reserve Fund is at least Deposit, Borrower may either (i) deliver to Lender a Letter of Credit in an amount 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 Deposit (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“LC Option”) 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 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 DSRF RequirementBank 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 Trustee shall promptly notify NVTC event of any such fact Debt Service Shortfalls, borrow such funds pursuant to the Bank Loan and will contribute such funds to Borrower and (c) Borrower will use such funds to pay for any such Debt Service Shortfalls (the amount of the surplus“Certificate Option”). (c) Any interest earned from In the investment event Borrower elects to deliver cash under this Section 7.4, Borrower shall have the right, on any Determination Date, to receive a disbursement of money amounts in a Debt Service Reserve Fund shall be transferred upon receipt to excess of 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 amount of the Debt Service Reserve Fund to be less than Shortfalls then projected by Lender through 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 exists or will exist a surplus in a Debt Service Reserve Fund as the result end 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 DSRF 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 Series Supplement (and confirmed in an Officer's Certificate) or (ii) an Officer's Certificatecalendar year 2009. (d) In lieu the event Borrower elects to deliver a Letter of maintaining and depositing money Credit under this Section 7.4 or securities in 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 Debt Service Reserve Fund, NVTC may deposit with the Trustee a DSRF Letter of Credit Facility in an amount equal to all 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 portion 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 contribute such funds to Borrower and (c) Borrower will use such funds to pay for any such Debt Service Shortfalls. In the event that Borrower fails to comply with the provisions of the foregoing sentence, Borrower shall, within five (5) Business Days following the applicable DSRF RequirementDetermination Date, deposit with Lender cash or deliver to Lender a Letter of Credit in an amount equal to the Debt Service Shortfalls as projected by Lender through the end of the calendar year 2009. (f) Provided no Event of Default shall have occurred and be continuing, Lender shall make disbursements of Debt Service Reserve Funds, upon and subject to the terms and conditions set forth in this Section 7.4, to pay for Debt Service Shortfalls. Any DSRF Credit Facility will permit Borrower may, on written request received by Lender at least five (5) Business Days prior to any Payment Date, request that Lender withdraw sums held as Debt Service Reserve Funds and apply such sums toward the Trustee Debt Service due on such Payment Date, provided Borrower delivers evidence acceptable to draw or obtain under it for deposit Lender in all respects that there is a Debt Service Shortfall. The amount permitted by Lender to be withdrawn from the Debt Service Reserve Fund amounts thatFunds and applied to the Debt Service due on such Payment Date shall not exceed the amount of such Debt Service Shortfall. In the event that on any subsequent Determination Date following the deposit of cash or delivery of a Letter of Credit as required hereunder, when combined Borrower delivers to Lender a certificate of Bank Loan Borrower that satisfies the requirements of Section 7.4(e) above, Lender shall return to Borrower the Debt Service Reserve Funds remaining on deposit with the other amounts in Lender or such FundLetter of Credit, are not less than the applicable DSRF Requirementas applicable. (1g) The Trustee will make a drawing on or otherwise obtain funds under any DSRF Credit Facility before its expiration or termination (i) whenever money is required for Notwithstanding the purposes for which Debt Service Reserve Fund money may be applied and (ii) unless such DSRF Credit Facility has been extended or a qualified replacement for it delivered to the Trusteeforegoing, in the event NVTC has not deposited immediately available funds equal to that Mezzanine B Borrower is maintaining the applicable DSRF Requirement at least two Business Days preceding the expiration or termination of such DSRF Credit Facility. (2) If NVTC provides the Trustee with a DSRF Credit Facility as provided in this subsection, the Trustee will transfer the corresponding amount of funds then on deposit in the applicable Debt Service Reserve Fund Funds when it is required to NVTCdo so under the Mezzanine B Loan Agreement, provided NVTC delivers Borrower shall not be required to maintain the Trustee (i) an Opinion of Bond Counsel that such transfer of funds will not adversely affect the excludability from gross income for purposes of federal income taxation of interest on any Bonds the interest on which was excludable on the date of their issuance and (ii) NVTC covenants to comply with any directions or restrictions contained in such opinion concerning the use of such fundsDebt Service Reserve Funds as required hereunder.

Debt Service Reserve Funds. (a) Except as specifically provided belowOn the Closing Date, Borrower shall deposit with Lender an amount equal to $11,797,746.00 (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 dueDeposit”), then the Trustee shall transfer to such Fund which is the amount of deficiency first from Debt Service Shortfalls projected by Lender through the Revenue Stabilization Fund end of calendar year 2009 and which shall be held and disbursed by Lender in accordance with the applicable provisions of this Section 7.4. Amounts so deposited hereunder shall hereinafter be referred to as provided in Section 8.3 above and then from the Related “Debt Service Reserve FundFunds”. (b) On each DSRF Determination Date, In lieu of making the Trustee shall determine if the balance in each Debt Service Reserve Fund is at least Deposit, Borrower may either (i) deliver to Lender a Letter of Credit in an amount 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 Deposit (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“LC Option”) 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 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 DSRF RequirementBank 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 Trustee shall promptly notify NVTC event of any such fact Debt Service Shortfalls, borrow such funds pursuant to the Bank Loan and will contribute such funds to Borrower and (c) Borrower will use such funds to pay for any such Debt Service Shortfalls (the amount of the surplus“Certificate Option”). (c) Any interest earned from In the investment event Borrower elects to deliver cash under this Section 7.4, Borrower shall have the right, on any Determination Date, to receive a disbursement of money amounts in a Debt Service Reserve Fund shall be transferred upon receipt to excess of 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 amount of the Debt Service Reserve Fund to be less than Shortfalls then projected by Lender through 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 exists or will exist a surplus in a Debt Service Reserve Fund as the result end 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 DSRF 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 Series Supplement (and confirmed in an Officer's Certificate) or (ii) an Officer's Certificatecalendar year 2009. (d) In lieu the event Borrower elects to deliver a Letter of maintaining and depositing money Credit under this Section 7.4 or securities in 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 Debt Service Reserve Fund, NVTC may deposit with the Trustee a DSRF Letter of Credit Facility in an amount equal to all 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 portion 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 Borrower and (c) Borrower will use such funds to pay for any such Debt Service Shortfalls. In the event that Borrower fails to comply with the provisions of the foregoing sentence, Borrower shall, within five (5) Business Days following the applicable DSRF RequirementDetermination Date, deposit with Lender cash or deliver to Lender a Letter of Credit in an amount equal to the Debt Service Shortfalls as projected by Lender through the end of the calendar year 2009. (f) Provided no Event of Default shall have occurred and be continuing, Lender shall make disbursements of Debt Service Reserve Funds, upon and subject to the terms and conditions set forth in this Section 7.4, to pay for Debt Service Shortfalls. Any DSRF Credit Facility will permit Borrower may, on written request received by Lender at least five (5) Business Days prior to any Payment Date, request that Lender withdraw sums held as Debt Service Reserve Funds and apply such sums toward the Trustee Debt Service due on such Payment Date, provided Borrower delivers evidence acceptable to draw or obtain under it for deposit Lender in all respects that there is a Debt Service Shortfall. The amount permitted by Lender to be withdrawn from the Debt Service Reserve Fund amounts thatFunds and applied to the Debt Service due on such Payment Date shall not exceed the amount of such Debt Service Shortfall. In the event that on any subsequent Determination Date following the deposit of cash or delivery of a Letter of Credit as required hereunder, when combined with Borrower delivers to Lender a certificate of Bank Loan Borrower that satisfies the other amounts in such Fundrequirements of Section 7.4(e) above, are not less than Lender shall return to Borrower the applicable DSRF Requirement. (1) The Trustee will make a drawing on or otherwise obtain funds under any DSRF Credit Facility before its expiration or termination (i) whenever money is required for the purposes for which Debt Service Reserve Fund money may be applied and (ii) unless such DSRF Credit Facility has been extended or a qualified replacement for it delivered to the Trustee, in the event NVTC has not deposited immediately available funds equal to the applicable DSRF Requirement at least two Business Days preceding the expiration or termination of such DSRF Credit Facility. (2) If NVTC provides the Trustee with a DSRF Credit Facility as provided in this subsection, the Trustee will transfer the corresponding amount of funds then Funds remaining on deposit in the applicable Debt Service Reserve Fund to NVTCwith Lender or such Letter of Credit, provided NVTC delivers to the Trustee (i) an Opinion of Bond Counsel that such transfer of funds will not adversely affect the excludability from gross income for purposes of federal income taxation of interest on any Bonds the interest on which was excludable on the date of their issuance and (ii) NVTC covenants to comply with any directions or restrictions contained in such opinion concerning the use of such fundsas applicable.

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 directly 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 of the Debt Service Reserve Fund Funds 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 Reserve 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 its 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 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 DSRF 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 Series Supplement (and as confirmed in an Officer's Certificate) or (ii) an Officer's Certificate. (d) In lieu of maintaining and depositing money or securities in a Debt Service Reserve Fund, NVTC may deposit with the Trustee a DSRF Credit Facility in an amount equal to all or a portion of the applicable DSRF Requirement. Any DSRF Credit Facility will permit the Trustee to draw or obtain under it for deposit in the Debt Service Reserve Fund amounts that, when combined with the other amounts in such Fund, are not less than the applicable DSRF Requirement. (1) The Trustee will make a drawing on or otherwise obtain funds under any DSRF Credit Facility before its expiration or termination (i) whenever money is required for the purposes for which Debt Service Reserve Fund money may be applied and (ii) unless such DSRF Credit Facility has been extended or a qualified replacement for it delivered to the Trustee, in the event NVTC has not deposited immediately available funds equal to the applicable DSRF Requirement at least two Business Days preceding the expiration or termination of such DSRF Credit Facility. (2) If NVTC provides the Trustee with a DSRF Credit Facility as provided in this subsection, the Trustee will transfer the corresponding amount of funds then on deposit in the applicable Debt Service Reserve Fund to NVTC, provided NVTC delivers to the Trustee (i) an Opinion of Bond Counsel that such transfer of funds will not adversely affect the excludability from gross income for purposes of federal income taxation of interest on any Bonds the interest on which was excludable on the date of their issuance and (ii) NVTC covenants to comply with any directions or restrictions contained in such opinion concerning the use of such funds.or