Common use of Defeasance of Bonds Clause in Contracts

Defeasance of Bonds. (a) Any Bond shall be deemed to be paid within the meaning of this Article and for all purposes of this Indenture when (i) payment of the principal of and premium, if any, on such Bond, plus Interest thereon to the due date thereof (whether such due date is by reason of maturity or upon redemption as provided herein), either (1) shall have been made or caused to be made in accordance with the terms thereof, or (2) shall have been provided for by irrevocably depositing with the Trustee, in trust and irrevocably set aside exclusively for such payment, (A) moneys sufficient to make such payment and/or (B) Government Obligations maturing as to principal and interest in such amounts and at such times, without reinvestment, as will insure the availability of sufficient moneys to make such payment, (ii) all necessary and proper fees, compensation and expenses of the Trustee, any additional Paying Agent and the Issuer pertaining to the Bonds with respect to which such deposit is made, including payments required to be made to the Rebate Fund, shall have been paid or the payment thereof provided for to the satisfaction of the Trustee, and (iii) the Trustee is provided with an opinion of Bond Counsel dated the date of the defeasance to the effect that the defeasance of the Bonds pursuant to this Section 6.02 shall not adversely affect the tax-exempt status of the Qualified Stated Interest or Original Issue Discount on the Bonds. At such time as a Bond shall be deemed to be paid hereunder, as aforesaid, such Bond shall no longer be secured by or entitled to the benefits of this Indenture, except for the purposes of any such payment from such moneys or Government Obligations.

Defeasance of Bonds. (a) The following provisions of this SECTION 8.02 shall apply only from and after the Conversion Date: Any Bond shall be deemed to be paid within the meaning of this Article and for all purposes of this Indenture when (ia) payment of the principal of and premium, if any, on such Bond, plus Interest interest thereon to the due date thereof (whether such due date is by reason of maturity or upon redemption as provided herein), ) either (1i) shall have been made or caused to be made in accordance with the terms thereof, or (2ii) shall have been provided for by irrevocably depositing with the TrusteeTrustee or a bank located in the State of Kansas and having full trust powers, in trust and irrevocably set aside exclusively for such payment, (Ai) moneys sufficient to make such payment and/or or (Bii) Government Obligations maturing as to principal and interest in such amounts and at such timestimes as will insure, without reinvestmentfurther investment or reinvestment thereof, as will insure in the opinion of an independent certified public accounting firm of national reputation (a copy of which opinion shall be furnished to the rating agency then providing the rating borne by the Bonds), the availability of sufficient moneys to make such payment, (iib) all necessary and proper fees, compensation and expenses of the Trustee, any additional Paying Agent Trustee and the Issuer pertaining to the Bonds with respect to which such deposit is made, including any payments required to be made to the Rebate Fund, shall have been paid or the payment thereof provided for to the satisfaction of the Trustee, and (iiic) the Issuer, at the expense of the Company, shall have given to the Trustee is provided with in form satisfactory to the Trustee an opinion of Bond Counsel dated counsel experienced in bankruptcy matters, which opinion shall be satisfactory to the date of rating agency (if any) then providing the defeasance rating borne by the Bonds, to the effect that the defeasance application of such moneys will not constitute a voidable preference in the event of the Bonds pursuant to this Section 6.02 shall not adversely affect the tax-exempt status occurrence of the Qualified Stated Interest or Original Issue Discount on the Bondsan Act of Bankruptcy. At such time as a Bond shall be deemed to be paid hereunder, as aforesaid, such Bond shall no longer be secured by or entitled to the benefits of this Indenture, except for the purposes of any such payment from such moneys or Government Obligations. Notwithstanding the foregoing, no deposit under clause (a)(ii) of the immediately preceding paragraph shall be deemed payment of such Bonds as aforesaid until (a) proper notice of redemption of such Bonds shall have been previously given in accordance with Article III of this Indenture, or in the event said Bonds are not by their terms subject to redemption within the next succeeding sixty (60) days, until the Company shall have given the Trustee, in form satisfactory to the Trustee, irrevocable instructions to notify, as soon as practicable, the Owners of the Bonds, that the deposit required by (a)(ii) above has been made with the Trustee and that said Bonds are deemed to have been paid in accordance with this SECTION 8.02 and stating the maturity or redemption date upon which moneys are to be available for the payment of the principal of and the applicable redemption premium, if any, on said Bonds, plus interest thereon to the due date thereof; or (b) the maturity of such Bonds and (c) an opinion of Bond Counsel shall be delivered to the Trustee and the Issuer that the defeasance of the Bonds will not adversely affect the tax-exempt status of the Bonds. All moneys so deposited with the Trustee as provided in this SECTION 8.02 may also be invested and reinvested, at the direction of the Company, in noncallable Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from all Government Obligations in the hands of the Trustee pursuant to this SECTION 8.02 which is not required for the payment of the Bonds and interest and premium, if any, thereon with respect to which such moneys shall have been so deposited shall be deposited in the General Account of the Bond Fund as and when realized and collected for use and application as are other moneys deposited in the General Account of the Bond Fund. The Issuer and the Trustee hereby covenant that no deposit will knowingly be made or accepted and no use knowingly made of any such deposit which would cause the Bonds to be treated as arbitrage bonds within the meaning of Section 148 of the Code. Notwithstanding any provision of any other article of this Indenture which may be contrary to the provisions of this SECTION 8.02, all moneys or Government Obligations set aside and held in trust pursuant to the provisions of this SECTION 8.02 for the payment of Bonds (including interest and premium thereon, if any) shall be applied to and used solely for the payment of the particular Bonds (including the interest and premium thereon, if any) with respect to which such moneys or Government Obligations have been so set aside in trust.

Defeasance of Bonds. (a) Any Bond shall be deemed to be paid within the meaning of this Article and for all purposes of this Indenture when (i) payment of the principal of and premium, if any, on such Bond, plus Interest interest thereon to the due date thereof (whether such due date is by reason of maturity or upon redemption as provided herein), either (1) shall have been made or caused to be made in accordance with the terms thereof, or (2) shall have been provided for by irrevocably depositing with the Trustee, in trust and irrevocably set aside exclusively for such payment, (A) moneys sufficient to make such payment and/or (B) Government Obligations maturing as to principal and interest in such amounts and at such times, without reinvestment, as will insure the availability of sufficient moneys to make such payment, (ii) all necessary and proper fees, compensation and expenses of the Trustee, any additional Paying Agent and the Issuer pertaining to the Bonds with respect to which such deposit is made, including payments required to be made to the Rebate Fund, shall have been paid or the payment thereof provided for to the satisfaction of the Trustee, and (iii) the Trustee is provided with an opinion of Bond Counsel dated the date of the defeasance to the effect that the defeasance of the Bonds pursuant to this Section 6.02 shall not adversely affect the tax-exempt status of the Qualified Stated Interest or Original Issue Discount interest on the Bonds, and (iv) the Trustee is provided with a letter from each of Moody's and S&P to the effect that immediately following defeasance of the Bonds, as provided in this Section 6.02, the rating on the Bonds shall be the same or higher than the rating on the Bonds immediately prior to such defeasance. At such time as a Bond shall be deemed to be paid hereunder, as aforesaid, such Bond shall no longer be secured by or entitled to the benefits of this Indenture, except for the purposes of any such payment from such moneys or Government Obligations.