Common use of Trust for Payment of Debt Service Clause in Contracts

Trust for Payment of Debt Service. (a) The Issuer may provide for the payment of any of the Bonds by establishing a trust for such purpose with the Trustee and depositing therein cash and/or Federal Securities which (assuming the due and punctual payment of the principal of and interest on such Federal Securities) will provide funds sufficient to pay the Debt Service on such Bonds as the same becomes due and payable until the maturity or redemption of such Bonds; provided, however, that (1) such Federal Securities must not be subject to redemption prior to their respective maturities at the option of the issuer of such Securities, (2) if any of such Bonds are to be redeemed prior to their respective maturities, either (i) the Trustee shall receive evidence that notice of such redemption has been given in accordance with the provisions of this Indenture and such Bonds or (ii) the Issuer shall confer on the Trustee irrevocable authority for the giving of such notice on behalf of the Issuer, (3) such trust must be established only during a Fixed Rate Period and, if established during a Fixed Rate Period, all Bonds to be retired with funds from such trust must either mature or be called for redemption on or before the date immediately following such Fixed Rate Period, and (4) the Trustee has received the opinions referred to in Section 16.01(b)(4). (b) Cash and Federal Securities deposited with the Trustee pursuant to this Section shall not be a part of the Trust Estate but shall constitute a separate, irrevocable trust fund for the benefit of the Holders of the Bonds to be paid from such fund. Such cash and the principal and interest payable on such Federal Securities shall be applied by the Trustee solely to the payment of Debt Service on such Bonds. Any funds deposited with the Trustee pursuant to this Section shall be invested only in Federal Securities meeting the requirements of this Section. 107

Trust for Payment of Debt Service. (a) The Issuer may provide for the payment of any of the Bonds Notes by establishing a trust for such purpose with the Trustee and depositing therein cash and/or or Federal Securities which (assuming the due and punctual payment of the principal of and interest on such Federal Securities) will provide funds sufficient to pay the Debt Service on such Bonds Notes as the same becomes due and payable until the maturity or redemption of such BondsNotes; provided, however, that (1) such Federal Securities must not be subject to redemption prior to their respective maturities at the option of the issuer of such Securities, (2) if any of such Bonds Notes are to be redeemed prior to their respective maturities, either (i) the Trustee shall receive evidence that notice of such redemption has been given in accordance with the provisions of this Indenture and such Bonds Notes or (ii) the Issuer shall confer on the Trustee irrevocable authority for the giving of such notice on behalf of the Issuer, (3) such trust must be established only during a Fixed Rate Period and, if established during a Fixed Rate Period, all Bonds Notes to be retired with funds from such trust must either mature or be called for redemption on or before the date immediately following such Fixed Rate Period, and (4) the Trustee has received the opinions referred to in Section 16.01(b)(413.01(b)(4). (b) Cash and Federal Securities deposited with the Trustee pursuant to this Section shall not be a part of the Trust Estate but shall constitute a separate, irrevocable trust fund for the benefit of the Holders of the Bonds Notes to be paid from such fund. Such cash and the principal and interest payable on such Federal Securities shall be applied by the Trustee solely to the payment of Debt Service on such BondsNotes. Any funds deposited with the Trustee pursuant to this Section shall be invested only in Federal Securities meeting the requirements of this Section. 107.

Trust for Payment of Debt Service. (a) The Issuer may provide for the payment of any of the Bonds Bond by establishing a trust for such purpose with the Trustee and depositing therein cash and/or Federal Securities which (assuming the due and punctual payment of the principal of and interest on such Federal Securities, but without reinvestment) will provide funds sufficient to pay the Debt Service on such Bonds Bond as the same becomes due and payable until the maturity Maturity or redemption of such BondsBond; provided, however, that (1) such Federal Securities must not be subject to redemption prior to their respective maturities at the option of the issuer of such Securities, (2) if any of such Bonds are Bond is to be redeemed prior to their respective maturitiesits Maturity, either (i) the Trustee shall receive evidence that notice of such redemption has been given in accordance with the provisions of this Indenture and such Bonds Bond or (ii) the Issuer shall confer on the Trustee irrevocable authority for the giving of such notice on behalf of the Issuer, (3) if such Bond bears interest at a Variable Rate, (i) the interest rate on any such Bond shall be deemed the Cap Rate for purposes of calculating the amount of the deposit required by subsection (a) of this Section, and (ii) if any Rating Agency maintains a rating with respect to the Bonds at the time of establishment of such trust, the Trustee shall receive evidence from each such Rating Agency to the effect that the substitution of the proposed trust will not, by itself, result in a reduction or withdrawal of its rating then assigned to the Bonds, (4) prior to the establishment of such trust the Trustee must be established only during a Fixed Rate Period andreceive (i) an Opinion of Counsel stating in effect that upon the occurrence of an Act of Bankruptcy, if established during a Fixed Rate Period, all Bonds to be retired with funds from money and investments in such trust must either mature will not be recoverable from the Trustee or be called for redemption on or before Bondholders under provisions of the date immediately following such Fixed Rate PeriodFederal Bankruptcy Code relating to voidable preferences and (ii) a Favorable Tax Opinion, and (45) prior to the establishment of such trust the Trustee has received must receive a report by an Independent certified public accountant stating in effect that the principal and interest payments on the Federal Securities in such trust, without reinvestment, together with the cash initially deposited therein, will be sufficient to make the required payments from such trust. The Issuer shall give each Rating Agency that maintains a rating with respect to the Bonds 10 days’ notice of its intent to establish such a trust and shall deliver to each such Rating Agency a copy of the opinions referred to in Section 16.01(b)(4)and report required by subsections (a)(4) and (5) of this Section. (b) Cash and and/or Federal Securities deposited with the Trustee pursuant to this Section shall not be a part of the Trust Estate but shall constitute a separate, irrevocable trust fund for the benefit of the Holders Holder of the Bonds Bond to be paid from such fund. Such cash and the principal and interest payable on such Federal Securities shall be applied by the Trustee solely to the payment of Debt Service on such Bonds. Any funds deposited with the Trustee pursuant to this Section shall be invested only in Federal Securities meeting the requirements of this Section. 107.