82-25 AUTHORIZING, APPROVING, RATIFYING AND CONFIRMING CERTAIN ADDITIONS AND CHANGES TO ECONOMIC DEVELOPMENT REVENUE BONDS (BRETTWOOD VILLAGE ASSOCIATES PROJECT)

Home Browse Search

If such petition in Bankruptcy is filed within the 91-day period subse- quent to any payment by or for the account of the Partnership on the Note but prior to the related payment date on the Bonds, then the Trustee is required to hold such Note payment in a separate escrow account in the Bond Fund and draw upon the Letter of Credit in an amount sufficient to make the related payment on the Bonds and to pay all additional principal, premium, if any, and interest due on the Bonds pursuant to the requisite acceleration. If an order is entered by a court of competent jurisdiction holding that pursuant to Section 547 of the Bankruptcy Code the Trustee must return any part or all of such Note payment, then the Trustee shall return such amount pursuant to such order from the separate escrow account in the Bond Fund. If instead it is determined that such Note payment does not have to be returned, or if, in the opinion of coun- sel satisfactory to the Trustee, all statutes of limitation relating to Section 547 of the Bankruptcy Code have expired without any suit or other proceeding having been filed to recover any part or all of such Note payment, then the Note payment held in the separate escrow account (including investment earnings thereon) shall be paid to the Bank as reimbursement for a portion of the amount drawn under the Letter of Credit. Upon payment by the Bank of the entire principal, premium, if any, and interest on the Bonds pursuant to the Letter of Credit, the Trustee shall release the lien of the Mortgage (see "SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT, THE NOTE AND THE MORTGAGE" herein). Investment of Construction Fund and Bond Fund Moneys The Trustee, to the fullest extent possible in accordance with the Loan Agreement, shall separately invest and reinvest any moneys in the Construction Fund or the Bond Fund, at the written direction of the Partnership; provided that notwithstanding the foregoing (i) any moneys drawn under the Letter of Credit and held by the Trustee for the payment of the Bonds in the Bond Fund or otherwise, including without limitation moneys held in the separate escrow account in the Bond Fund pursuant to 510(b) of the Indenture and (ii) any moneys held by the Trustee for the payment of the Bonds upon redemption or acceleration from and after the time notice of such redemption or acceleration shall first be given under the Indenture, shall be invested and reinvested by the Trustee in Government Obligations selected by the Trustee and maturing on such dates and in such amounts as the Trustee in its sole discretion shall determine to be necessary to make the payments therefrom to the bond holders and the holders of coupons when required under the Indenture. Any such invest- ments shall be held by or under the control of the Trustee and shall be deemed at all times a part of the fund or account in which such moneys are originally held and the interest accruing thereon and any profit realized from such investments shall be credited to such fund, except that prior to the Completion Date interest earnings on the Bond proceeds originally deposited in the Bond Fund shall be transferred to and deposited in the Construction Fund to pay Costs of the Project, and any loss resulting from such investments shall be paid to such fund by the Partnership. The Trustee may make any investment through its own bond department. No investments of such funds may be made which would result in the Bonds being classifed as arbitrage bonds under applicable provisions of the Code. 21