Agenda 07/12/2005 - Laserfiche WebLink

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Section 4 Creation of Proceeds Funds There is hereby established a trust fund to be designated the "Note Proceeds Fund, City of Martinsville General Obligation Note, Series 2005" and a trust fund to be designated the "Bond Proceeds Fund, City of Martinsville General Obligation Note, Series 2005." Section 5 Payments into Proceeds Funds All funds received from the proceeds of the sale of the Note after payment of certain costs of issuance of the Note shall be deposited into the Note Proceeds Fund to be used in the manner provided in Section 2 (a) in accordance with the Bond and Note Purchase Agreement, the Financing Agreement and applicable law. All funds received from the proceeds of the sale of the Bond after payment of certain costs of issuance of the Bond shall be deposited into the Bond Proceeds Fund to be used in the manner provided in Section 2 (b) in accordance with the Bond and Note Purchase Agreement, the Financing Agreement and applicable law. Section 6 Creation of Note Fund and Bond Fund (a) There is hereby established a trust fund to be designated the "Note Fund, City of Martinsville General Obligation Note, Series 2005" in which Note Fund there is hereby established an Interest Account and a Principal Account. As and when received, monies shall be deposited into the Note Fund, and payments from the Note Fund shall be made as follows: (i) to the Interest Account in the Note Fund, subject to credit, if any, for proceeds of the Note deposited therein, on the Business Day prior to each Note Payment Date, an amount equal to the amount of interest that will become due on the Note on the next succeeding Note Payment Date; and (ii) to the Principal Account in the Note Fund on the Business Day prior to the Maturity Date an amount equal to the principal that is required to be deposited into the Principal Account in order to pay the principal due on the Note on the Maturity Date. (b) There is hereby established a trust fund to be designated the "Bond Fund, City of Martinsville General Obligation Bond, Series 2005" in which Bond Fund there is hereby established an Interest Account and a Principal Account. As and when received, monies shall be deposited into the Bond Fund, and payments from the Bond Fund shall be made as follows: (i) to the Interest Account in the Bond Fund, subject to credit, if any, for proceeds of the Bond deposited therein, on the Business Day prior to each Bond Payment Date, an amount equal to the amount of interest that will become due on the Bond on the next succeeding Bond Payment Date; and 19