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claims-paying ability of the issuer of the surety bond or insurance policy falls below "A" or (b) <br /> the rating of the issuer of the letter of credit falls below "A" or (c) the issuer of the Reserve <br /> Fund credit instrument defaults in its payment obligations or (d) the issuer of the Reserve Fund <br /> credit instrument becomes insolvent, the Issuer shall either (i) deposit into the Reserve Fund an <br /> amount sufficient to cause the cash or permitted investments on deposit in the Reserve Fund to <br /> equal to Reserve Fund Requirement on all outstanding Bonds, such amount to be paid over the <br /> ensuing year in equal instalments on at least a monthly basis or (ii) replace such instrument with <br /> a surety bond, insurance policy or letter of credit meeting the requirements in any of 1-3 above <br /> within six months of such occurrence. <br /> 8.Where applicable, the amount available for draws or claims under the Reserve Fund credit <br /> instrument may be reduced by the amount of cash or permitted investments deposited in the <br /> Reserve Fund pursuant to clause (i) of the preceding subparagraph 6. <br /> 9.If the Issuer chooses the above described alternatives to a cash-funded Reserve Fund, any <br /> amounts owed by the Issuer to the issuer of such credit instrument as a result of a draw thereon <br /> or a claim thereunder, as appropriate, shall be included in any calculation of debt service <br /> requirements required to be made pursuant to the Authorizing Document for any purpose, e.g., <br /> rate covenant or additional bonds test. <br /> 10.The Authorizing Document shall require the Fiduciary to ascertain the necessity for a claim or <br /> draw upon the Reserve Fund credit instrument and to provide notice to the issuer of the Reserve <br /> Fund credit instrument in accordance with its terms not later than three days (or such longer <br /> period as may be necessary depending on the permitted time period for honoring a draw under <br /> the Reserve Fund credit instrument) prior to each interest payment date. <br /> 11.Cash on deposit in the Reserve Fund shall be used (or investments purchased with such cash <br /> shall be liquidated and the proceeds applied as required) prior to any drawing on any Reserve <br /> Fund credit instrument. If and to the extent that more than one Reserve Fund credit instrument is <br /> deposited in the Reserve Fund, drawings thereunder and repayments of costs associated <br /> therewith shall be made on a pro rata basis, calculated by reference to the maximum amounts <br /> available thereunder. <br /> F-10 <br />