1985-078 - Laserfiche WebLink

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O. ARBITRAGE. The Issuer. does hereby further covenant ® that no use will be made of the proceeds of the Bonds which would cause the Bonds to be "arbitrage bonds" within the meaning of Section 1031c) of the Internal Revenue Code of 1954, as amended, and the applicable regulations thereunder. The Issuer, at all times while such Bonds and the interest thereon are outstanding, including refundings thereof, will comply with the requirements !401 of such Section 103(c) and with the valid and applicable rules and regulations of the Internal Revenue Service thereunder. SECTION 17. CONSTRUCTION TRUST FUND. All of the pro- ceeds derived from the sale of the Bonds (except (a) an amount equal to accrued and capitalized interest, if any, on the Bonds to be deposited in the Sinking Fund, and (b) an amount equal to all or a portion of the Reserve Account Requirement to be depo- sited in the Reserve Account) shall be deposited in a trust fund which is hereby created, established and designated as the "Recreational Facilities Construction Trust Fund" (the "Construction Fund"). The Construction Fund shall be deposited and maintained with any banking institution in the State of Florida approved as a county depository and subsequently designated by the Board. The money therein shall be used only for the payment of the cost of the Project, but, pending such application, may be invested in Authorized Investments maturing at such time or times as necessary to meet the requirements of the Construction Fund, the income from such investments to remain in the Construction Fund pending completion of the Project. Any balance of unexpended money in the Construction Fund after completion of the Project shall be deposited in the Revenue Fund. SECTION 18. DEFEASANCE. If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to any of the Bonds, then, and in that event, the pledge of and lien on the Pledged Funds in favor of the Registered Owners of such Bonds shall be no longer in effect. For purposes of the -31- M ^1.r .a r\.