Common use of Nonpresentment of Bonds Clause in Contracts

Nonpresentment of Bonds. In the event that any Bond shall not be presented for payment when the principal thereof becomes due in whole or in part, either at stated maturity, by redemption or pursuant to any mandatory sinking fund requirements, or a check or draft for interest is uncashed, if moneys sufficient to pay the principal and premium, if any, then due on that Bond or to pay such check or draft shall have been made available to the Trustee for the benefit of its Holder, all liability of the Issuer to that Holder for such payment of the principal and premium, if any, then due on the Bond or interest on such Bond represented by such check or draft thereupon shall cease and be discharged completely. Thereupon, it shall be the duty of the Trustee to hold those moneys, without liability for interest thereon, in a separate account in the Bond Fund for the exclusive benefit of the Holder, who shall be restricted thereafter exclusively to those moneys for any claim of whatever nature on its part under this Indenture or on, or with respect to, the principal and premium, if any, then due on that Bond or interest on such Bond represented by such check or draft. Any of those moneys which shall be so held by the Trustee, and which remain unclaimed by the Holder of a Bond not presented for payment or check or draft not cashed for a period of three years after the due date thereof, shall, subject to any applicable provisions of Title 6 of the Texas Property Code relating to unclaimed property, be paid to the Obligor. Thereafter, the Holder of that Bond shall look only to the Obligor for payment and then only to the amounts so received by the Obligor or paid to or on behalf of the Obligor, without any interest thereon, and the Trustee shall not have any responsibility with respect to those moneys.

Nonpresentment of Bonds. In the event that any Bond shall not be presented for payment when the principal thereof becomes due in whole or in part, either at stated maturity, by redemption or pursuant to any mandatory sinking fund requirements, or a check or draft for interest is uncashed, if moneys sufficient to pay the principal and premium, if any, then due on that Bond or to pay such check or draft shall have been made available to the Trustee for the benefit of its Holder, all liability of the Issuer to that Holder for such payment of the principal and premium, if any, then due on the Bond or interest on such Bond represented by such check or draft thereupon shall cease and be discharged completely. Thereupon, it shall be the duty of the Trustee to hold those moneys, without liability for interest thereon, in a separate account in the Bond Fund for the exclusive benefit of the Holder, who shall be restricted thereafter exclusively to those moneys for any claim of whatever nature on its part under this Indenture or on, or with respect to, the principal and premium, if any, then due on that Bond or interest on such Bond represented by such check or draft. Any of those moneys which shall be so held by the Trustee, and which remain unclaimed by the Holder of a Bond not presented for payment or check or draft not cashed for a period of three four years after the due date thereof, shall, subject to any applicable provisions of Title 6 of the Texas Property Code relating to unclaimed property, shall be paid to the ObligorBank free of any trust or lien unless the Bank shall have confirmed to the Trustee in writing that no moneys are then due under the Reimbursement Agreement in which case such moneys shall be paid to the Borrower. Thereafter, the Holder of that Bond shall look only to the Obligor Borrower for payment and then only to the amounts so received by the Obligor Borrower or paid to or on behalf of the ObligorBorrower (including to the Bank pursuant to this paragraph), without any interest thereon, and the Trustee shall not have any responsibility with respect to those moneys.

Nonpresentment of Bonds. In the event that any Bond shall not be presented for payment when the principal thereof becomes due in whole or in part, either at stated maturity, by redemption or pursuant to any mandatory sinking fund requirements, or a check or draft for interest is uncashed, if moneys sufficient to pay the principal and premium, if any, then due on that Bond or to pay such check or draft shall have been made available to the Trustee for the benefit of its Holder, all liability of the Issuer to that Holder for such payment of the principal and premium, if any, then due on the Bond or interest on such Bond represented by such check or draft thereupon shall cease and be discharged completely. Thereupon, it shall be the duty of the Trustee to hold those moneys, without liability for interest thereon, in a separate account in the Bond Fund for the exclusive benefit of the Holder, who shall be restricted thereafter exclusively to those moneys for any claim of whatever nature on its part under this Indenture indenture or on, or with respect to, the principal and premium, if any, then due on that Bond or interest on such Bond represented by such check or draft. .. Any of those moneys which shall be so held by the Trustee, and which remain unclaimed by the Holder of a Bond not presented for payment or check or draft not cashed for a period of three four years after the due date thereof, shall, subject to any applicable provisions of Title 6 of the Texas Property Code relating to unclaimed property, shall be paid to the ObligorBank free of any trust or lien unless the Bank shall have confirmed to the Trustee in writing that no moneys are then due under the Reimbursement Agreement in which case such moneys shall be paid to the Borrower. Thereafter, the Holder of that Bond shall look only to the Obligor Borrower for payment and then only to the amounts so received by the Obligor Borrower or paid to or on behalf of the ObligorBorrower (including to the Bank pursuant to this paragraph), without any interest thereon, and the Trustee shall not have any responsibility with respect to those moneys.

Nonpresentment of Bonds. In the event that any Bond shall not be presented for payment when the principal thereof of and any premium on the Bond becomes due in whole or in part, either at stated maturity, by at the date fixed for redemption or pursuant to any mandatory sinking fund requirementsthereof, or a otherwise, or in the event any check or draft for interest on any Bond is uncashed, if moneys money sufficient to pay the principal and premium, if any, any premium then due on that Bond or to pay such check or draft shall have been made available to the Trustee for the benefit of its Holder, then all liability of the Issuer State to that Holder for such payment of the principal and premium, if any, any premium then due on the Bond or of the interest on such Bond represented by such check or draft thereupon shall cease and be discharged completelycompletely discharged. Thereupon, it shall be the duty of the Trustee to hold those moneysthat money, without liability for interest thereon, in a separate account in of the Bond Fund Trustee for the exclusive benefit of the HolderHolder of that Bond, who shall be restricted thereafter exclusively to those moneys that money for any claim of whatever nature on its part under this Indenture or on, or with respect to, the principal and premium, if any, any premium then due on that Bond or the interest on such Bond represented by such check or draft. Any of those moneys which the money that shall be so held by the Trustee, and which remain that remains unclaimed for a period of four years after the due date thereof by the Holder of a the Bond not presented for payment or a check or draft not cashed for a period of three years after the due date thereofcashed, shall, subject to any applicable provisions of Title 6 of the Texas Property Code relating to unclaimed property, shall be paid to the ObligorState free of any trust or lien upon request in writing by the State. Thereafter, the Holder of that Bond shall look only to the Obligor State for payment and then only to the amounts so received by the Obligor or paid to or on behalf of the Obligor, State without any interest thereon, and the Trustee shall not have any no responsibility with respect to those moneys.that money. (End of Article III)