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ia <br />$ <br />nconditionally guaranteed by, the United States of America, <br />aving a market value at least equal to such cash balances. <br />I <br />ARTICLE IV <br />LIMITATION ON INVESTMENTS <br />' Section 4.01. General. Except as herein otherwise <br />~expressly provided, the Escrow Agent shall not have any <br />ipower or duty to invest any money held hereunder; or to make <br />substitutions of the Escrowed Securities; or to sell <br />itransfer or otherwise dispose of the Escrowed Securities. <br />;In particular, except as provided in Sections 4.02 and 4.03 <br />I,below, cash balances on deposit in the Escrow Fund shall not <br />Tbe reinvested or bear interest, and the Escrow Agent shall <br />';be entitled to retain any benefit from the "float" (if any) <br />,resulting therefrom as additional compensation for its <br />;services hereunder. <br />; Section 4.02. Reinvestment of Certain Cash Balances in <br />Escrow by Escrow. The Escrow Agent shall reinvest certain <br />proceeds of the Escrowed Securities in cgrtain additional <br />jescrowed securities, at such times, in such amounts, for <br />isuch terms and bearing interest at 0%, all as more fully <br />lprovided in the Exhibit . Such securities, when <br />~purchased, shall also constitute Escrowed Securities <br />~hereunder. <br />Section 4.03. Substitution of Securities. At the <br />{written request of the Issuer, and upon compliance with the <br />lconditions hereinafter stated, the Escrow Agent shall <br />!utilize cash balances in the Escrow Fund, or sell, transfer, <br />~otherwise dispose of or request the redemption of the <br />Escrowed Securities and apply the proceeds therefrom to <br />ipurchase Refunded Bonds or direct obligations of, or <br />iobligations the principal of and interest on which is <br />lunconditionally guaranteed by, the United States of America <br />!which do not permit the redemption thereof at the option of <br />ithe obligor, and in connection therewith the Issuer reserves <br />;the right to call for redemption prior to maturity any of <br />'Ithe Refunded Bonds to the extent permitted by their <br />jauthorizing ordinances. Any such transaction may be <br />,effected by the Escrow Agent only if (a) the Escrow Agent <br />ishall have received a written opinion from a nationally <br />irecognized firm of certified public accountants that such <br />;transaction will not cause the amount of money and <br />isecurities in the Escrow Fund to be reduced below an amount <br />l s ufficient to provide for the full and timely payment of <br />principal of, redemption premium on and interest on all of <br />ithe remaining Refunded Bonds as they become due, taking into <br />~account any optional redemption thereof exercised by the <br />!Issuer in connection with such transaction; and (b) the <br />IEscrow agent shall have received the unqualified written <br />!legal opinion of nationally recognized bond counsel or tax <br />jcounsel to the effect that such transaction will not cause <br />ithe Refunded Bonds or Refunding Bonds to be "arbitrage <br />I bonds" within the meaning of Section 103 (c) of the Code. <br />Section 4.04. Arbitrage. The Issuer hereby covenants <br />and agrees that it shall never request the Escrow Agent to <br />exercise any power hereunder or permit any part of the money <br />in the Escrow Fund or proceeds from the sale of Escrowed <br />Securities to be used directly or indirectly to acquire any <br />securities or obligations if the exercise of such power or <br />the acquisition of such securities or obligations would <br />cause the Refunded Bonds or the Refunding Bonds to be <br />"arbitrage bonds" within the meaning of Section 103(c) of <br />the Code. <br />5 <br />