The Loan Loan Repayment and Additional Charges. Section 4.1 The Loan.
(a) The Issuer agrees, upon the terms and conditions herein specified, to lend to the Borrower the proceeds received by the Issuer from the sale of the Bonds, excluding any interest earned thereon by causing such proceeds to be deposited with the Trustee for disposition as provided herein and in the Indenture. The obligation of the Issuer to make the Loan shall be deemed fully discharged upon the deposit of the proceeds of the Bonds with the Trustee. The Loan shall be evidenced by the Note, in the form attached as Schedule B hereto, and contemporaneously with the issuance of the Bonds, the Issuer will endorse the Note without recourse to the order of and will assign the Note to the Trustee, as the assignee of the Issuer. The obligation of the Bondholder Representative to approve any Requisition (or to purchase the Bonds) is subject to satisfaction of the conditions listed in Schedule D attached hereto and shall not be unreasonably withheld. Notwithstanding anything herein or in the Note to the contrary, the Loan will be fully funded as a single advance upon the purchase by the Bondholder Representative of the Bond (the proceeds received by the Issuer will be immediately loaned to the Borrower upon and in connection with such sale and then Trustee will disburse the proceeds of the Loan on deposit with the Trustee as set forth in this Agreement and in the Indenture)
(b) Subject to the terms of this Agreement, upon and in connection with the issuance of the Bond, the Bondholder Representative will issue the Bank Letter of Credit as security for the good faith deposit for the commitment of the Permanent Lender to make the Permanent Loan provided under the Forward Bond Purchase Agreement; provided that the Borrower shall have first executed and delivered to the Bondholder Representative a letter of credit application and all other documents customarily required by the Bondholder Representative in connection with the issuance of the Bank Letter of Credit, each of which shall be in form and substance satisfactory to the Bondholder Representative in its sole discretion. The Borrower shall provide the Bondholder Representative with funds in the amount and on the date necessary to settle the Bondholder Representative’s obligation under any draft drawn under the Bank Letter of Credit. Interest shall accrue from the date of payment by the Bondholder Representative under the Bank Letter of Credit until payment by the Borrower of its reimbursement...
The Loan Loan Repayment and Additional Charges
