Common use of Redemption Fund Clause in Contracts

Redemption Fund. (a) The Redemption Fund shall be held by the Trustee for the benefit of the Bonds. The Trustee shall deposit into the Redemption Fund any Prepayments or Net Proceeds pursuant to Section 5.6. Any moneys on deposit in the Redemption Fund shall be used and applied, as soon as practicable following the receipt thereof, but not later than twelve months after such receipt, for either or both of the following purposes: (1) to the redemption of Bonds as may be designated in an Officer’s Certificate; or (2) to the purchase of Bonds at the price specified by the Borrower, but only upon receipt of a certificate of a Borrower Representative, with a copy to the Authority, stating the Principal Amounts and maturities of the Bonds to be purchased; provided that no such purchase shall be made at a price in excess of the Redemption Price applicable on the next ensuing redemption date, and that no such purchase shall be made during the period of 45 days next preceding a redemption date from moneys to be applied pursuant to paragraph (1) above to the redemption of Bonds on such date. (b) Accrued interest on purchased Bonds shall be paid from the Debt Service Fund. (c) All interest and other income from time to time received from the deposit and investment of moneys in the Redemption Fund shall be transferred upon receipt to the Revenue Fund. (d) No amount shall be withdrawn or transferred from or paid out of the Redemption Fund except as provided in this Section.

Redemption Fund. (a) The Redemption Fund shall be held by the Trustee for the benefit of the Bonds. The Trustee shall deposit into the Redemption Fund any Prepayments or Net Proceeds pursuant to Section 5.6. Any moneys on deposit in the Redemption Fund shall be used and applied, as soon as practicable following the receipt thereof, but not later than twelve months after such receipt, for either or both of the following purposes: (1) to the redemption of Bonds as may be designated in an Officer’s Certificate; or (2) to the purchase of Bonds at the price specified by the Borrower, but only upon receipt of a certificate of a Borrower Representative, with a copy to the Authority, stating the Principal Amounts and maturities of the Bonds to be purchased; provided that no such purchase shall be made at a price in excess of the Redemption Price applicable on the next ensuing redemption date, and that no such purchase shall be made during the period of 45 days next preceding a redemption date from moneys to be applied pursuant to paragraph (1) above to the redemption of Bonds on such date. (b) Accrued interest on purchased Bonds shall be paid from the Debt Service Fund. (c) All interest and other income from time to time received from the deposit and investment of moneys in the Redemption Fund shall be transferred upon receipt to the Revenue Fund. (d) No amount shall be withdrawn or transferred from or paid out of the Redemption Fund except as provided in this Section.