Common use of Reasonably Required Reserve Fund Clause in Contracts

Reasonably Required Reserve Fund. (a) In that the Board has no taxing power, and no legal authority to raise revenue above the amounts provided by existing sources (local taxes levied at fixed rates for the benefit of the Board and state funds), the Board may establish and maintain at Cadence, a reasonably required reserve fund for the payment of the principal and interest on the Revolving Credit Note, provided: (i) The Board shall cause the amount on deposit in such reserve fund to be at all times equal to the sum of One Million and No/100 Dollars ($1,000,000.00); and (ii) The Board shall at all times maintain the reserve fund invested in (A) a certificate of deposit or other restricted deposit or demand account that has a fixed rate, a fixed payment schedule, a substantial penalty for early withdrawal, and a yield that is not less than the yield on reasonably comparable direct obligations of the United States of America and the highest yield that is published by Cadence to be available from Cadence on reasonably comparable certificates of deposit or restricted deposit or demand accounts offered by Cadence to the public or (B) obligations the interest on which is excludable from gross income for federal income tax purposes, other than private activity bonds (within the meaning of Section 148(b) of the Code); and (iii) The Board complies with Section 148(f) of the Code with respect to the rebate of certain earnings on amounts in the reserve fund in excess of amounts paid as interest on this Master Agreement. (b) The Board shall apply the amounts in the reserve fund for the payment as necessary to prevent default. (c) The Board may deposit revenues of the Board in the reserve fund as needed to cause the amount on deposit therein to be equal to the amount specified above.

Reasonably Required Reserve Fund. (ai) In that the Board has no taxing power, and no legal authority to raise revenue above the amounts provided by existing sources (local taxes levied at fixed rates for the benefit of the Board and state funds), the Board may establish and maintain at Cadence, a reasonably required reserve fund for the payment of the principal and interest on the Revolving Credit NotePeriodic Payments, provided: (iA) The Board shall cause the amount on deposit in such reserve fund to be at all times equal to the sum of One Million and No/100 Dollars ($1,000,000.00); and (iiB) The Board shall at all times maintain the reserve fund invested in (A) a certificate of deposit or other restricted deposit or demand account that has a fixed rate, a fixed payment schedule, a substantial penalty for early withdrawal, and a yield that is not less than the yield on reasonably comparable direct obligations of the United States of America and the highest yield that is published by Cadence to be available from Cadence on reasonably comparable certificates of deposit or restricted deposit or demand accounts offered by Cadence to the public or (B) obligations the interest on which is excludable from gross income for federal income tax purposes, other than private activity bonds (within the meaning of Section 148(b) of the Code); and (iiiC) The Board complies with Section 148(f) of the Code with respect to the rebate of certain earnings on amounts in the reserve fund in excess of amounts paid as interest on this Master Agreement. (bii) The Board shall apply the amounts in the reserve fund for the payment as necessary to prevent default. (ciii) The Board may deposit revenues of the Board in the reserve fund as needed to cause the amount on deposit therein to be equal to the amount specified in (d)(1)(i) above.