Note Fund Sample Clauses
A Note Fund clause establishes a dedicated pool of money or resources set aside specifically for the payment or management of notes, such as promissory notes or debt instruments, issued by a company or entity. This clause typically outlines how the fund is to be maintained, the sources of its funding, and the permitted uses, such as making interest or principal payments to noteholders. By creating a separate fund, the clause ensures that there are sufficient resources available to meet the obligations under the notes, thereby providing assurance to investors and reducing the risk of default.
Note Fund. The Note Fund shall be used only for the payment when due of principal of, premium, if any, and interest on the Class A Notes and the Class B Notes, the purchase price of the Class A Notes and the Class B Notes to be purchased on a Purchase Date or Mandatory Tender Date or otherwise in accordance with Section 10.7 hereof, Other Obligations and Carry-Over Amounts (including any accrued interest thereon) and to make transfers to the credit of the Indemnification Fund required by Section 4.5 hereof. The principal of and interest on the Class C Notes shall be payable from the Surplus Fund as provided in Section 4.8 hereof. The Trustee shall identify the Monthly Payment Date for each installment of interest, installment of principal for Serial Notes and sinking fund installment for Term Notes with respect to each series of Notes.
Note Fund. The Note Fund created by Section 601 of the Indenture.
Note Fund. The Trustee shall deposit into each Capitalized Interest Account established within the Note Fund, the amount required to be deposited therein pursuant to the Supplemental Indenture establishing such Capitalized Interest Account. The Trustee shall deposit into each Interest Account established within the Note Fund, the amount transferred thereto from the Revenue Fund pursuant to Section 5.04(b) hereof and from the Debt Service Reserve Fund pursuant to Section 5.07 hereof. The Trustee shall deposit into each Principal Account established within the Note Fund, all Recoveries of Principal required to be deposited therein, if any, pursuant to any Supplemental Indenture, the amount transferred thereto from the Revenue Fund pursuant to Section 5.04(b) hereof and from the Debt Service Reserve Fund pursuant to Section 5.07 hereof. Amounts on deposit in each Capitalized Interest Account of the Note Fund shall be used to pay interest on the Series of Notes for which such Capitalized Interest Account was created or to pay Program Expenses to the extent amount in any Capitalized Expense Account are insufficient to make such payments. Amounts on deposit in each Interest Account of the Note Fund shall be used (a) to pay interest on the Notes or payments due on related Interest Rate Exchange Agreements (other than any payment due upon termination of the Interest Rate Exchange Agreement) for which such Interest Account was created and (b) if such Notes are secured by a Credit Facility which is not a bond insurance policy, to reimburse such Credit Facility Provider for a drawing upon its Credit Facility to pay interest on the related Notes. Amounts on deposit in each Principal Account of the Note Fund shall be used (i) to pay the principal of, and premium, if any, on the Notes for which such Principal Account was created and (ii) if such Notes are secured by a Credit Facility which is not a bond insurance policy, to reimburse such Credit Facility Provider for a drawing upon its Credit Facility to pay principal on the related Notes.
Note Fund. (a) There is hereby created and ordered established with the Trustee a Note Fund, the moneys in which, in accordance with Section 5.02(c), the Trustee shall make available to the Paying Agent or Agents, to pay (i) the principal or redemption price of Notes as they mature or become due, upon surrender thereof and (ii) the interest on Notes as it becomes payable. There are hereby established with the Trustee within the Note Fund three separate and segregated accounts, to be designated "Eligible Moneys Account", "Ineligible Moneys Account" and "Credit Facility Account".
(b) There shall be deposited into the various accounts of the Note Fund from time to time the following:
(i) into the Ineligible Moneys Account, (A) all payments by the Issuer and received by the Trustee in respect to Note Service Charges and (B) all other moneys received by the Trustee under and pursuant to the provisions of this Indenture or any of the provisions of the Reimbursement Agreement, when accompanied by directions from the person depositing such moneys that such moneys are to be paid into the Note Fund, provided that, in such case, after such moneys shall become Available Moneys, such moneys shall be transferred to the Eligible Moneys Account;
(ii) into the Credit Facility Account, all moneys drawn by the Trustee under the Credit Facility; and
(iii) into the Eligible Moneys Account, (A) all moneys held in the Ineligible Moneys Account which have become Available Moneys and (B) the proceeds of obligations issued by the Issuer to refund the Notes.
(c) Except as provided in Section 10.11, moneys in the Note Fund shall be used solely for the payment of the principal or redemption price of the Notes and interest on the Notes from the following source or sources but only in the following order of priority:
(i) Available Moneys held in the Eligible Moneys Account;
(ii) Available Moneys held in the Credit Facility Account, provided that, in no event, shall moneys held in the Credit Facility Account be used to pay any amount which may be due on Notes held pursuant to Section 3.05; and
(iii) moneys held in the Ineligible Moneys Account.
(d) To the extent moneys described under Section 5.02(c)(i) are not available in the Note Fund to pay principal or redemption price of the Notes and interest on the Notes when due (other than Notes held pursuant to Section 3.05, except for interest payments on Notes that were not held pursuant to Section 3.05 on the Record Date for such payment), the Trustee...