 | Board of Visitors minutes November 30, 1984 |  |
SECTION 208. Payment of Interest on Bonds.
(a) So long as any of the proceeds of the Bonds remain on deposit to the credit of the Interest Account, the State Treasurer shall: (i) not later than the Business Day preceding each Interest Payment Date withdraw from the Interest Account and remit by wire transfer to the Paying Agent an amount sufficient to pay all interest except for Additional Interest or Additional Default Interest coming due
- (b) After the period described in (a) and prior to the Fixed Rate Date, the State Treasurer shall:
- (i) not later than the tenth day next preceding each Interest Payment Date for Bank Bonds only, withdraw from the Special Fund and deposit in the Bank Interest Account, an amount equal to the interest to be paid on Bank Bonds on such Interest Payment Date, assuming that the rate of interest payable on the Bank Bonds during the ten day period preceding such Interest Payment Date shall be equal to the interest rate payable on the Bank Bonds on the date of the deposit;
- (ii) not later than the tenth day next preceding each Interest Payment Date for all Bonds, withdraw from the Special Fund and deposit in the Bank Interest Account an amount equal to the portion of interest to be paid on such Bank Bonds on such Interest Payment Date exceeding the amount of interest payable at the Maximum Interest Rate, assuming that the rate of interest payable on the Bank Bonds during the ten day period preceding such Interest Payment Date shall be equal to the interest rate payable on the date of the deposit; and
- (iii) with respect to any interest payment on Bank Bonds which is payable on demand, the State Treasurer shall, at the demand of the Bank, withdraw from the Special Fund and remit by wire transfer to the Paying Agent for payment to the Bank the amount of interest so payable.
(c) Prior to the Fixed Rate Date, not later than the Business Day preceding an Interest Payment Date for all Bonds, the State Treasurer shall withdraw first from the Interest Account, to the extent it contains Aged Money, and second from the Reserve Account on a first-in first-out basis, and remit by wire transfer to the Paying Agent, an amount sufficient to pay interest on all Bonds which are not Bank Bonds and interest on Bank Bonds in an amount not exceeding the interest payable at the Maximum Interest Rate.
(d) Prior to the Fixed Rate Date, not later than the Business Day preceding an Interest Payment Date for all Bonds, the State Treasurer shall withdraw from the Bank Interest Account and remit by wire transfer to the Paying Agent the amount of interest payable on the Bank Bonds which exceeds interest on such Bank Bonds payable at the Maximum Interest Rate.
(e) Prior to the Fixed Rate Date, not later than the Business Day preceding an Interest Payment Date for Bank Bonds only, the State Treasurer shall withdraw from the Bank Interest Account and remit by wire transfer to the Paying Agent the amount of interest payable on the Bank Bonds.
(f) Not later than the tenth day preceding each Interest Payment Date, the Bank shall notify the University and the State Treasurer by telephone (confirmed in writing), telecopy, computer transmission or other similar means, of the amount of interest payable on Bank Bonds on such Interest Payment Date, assuming that the rate of interest payable on the Bank Bonds shall not change during the ten-day period preceding the Interest Payment Date. Except as provided in (g) below, if the rate of interest payable on the Bank Bonds increases during the ten-day period preceding the Interest Payment Date, the State Treasurer shall withdraw from the Special Fund and remit by wire transfer to the Paying Agent on the Business Day preceding the Interest Payment Date, the amount of any such increase. Except as provided in (g) below, if the rate of interest payable on the Bank Bonds decreases during such ten-day period, the State Treasurer shall deposit the amount of any excess in the Special Fund.
(g) On the third day preceding each Interest Payment Date, the Bank shall notify the University and the State Treasurer by telephone (confirmed in writing), telecopy, computer transmission or similar means, of any change in the rate of interest payable on the Bank Bonds since the giving of the notice described in (f). If there shall be any change in the rate of interest payable on Bank Bonds during the three-day period preceding the Interest Payment Date, the amount of any resulting increase or reduction of interest payable on the Bank Bonds shall be credited or debited, as the case may be, against the interest payable on the Bank Bonds on the next succeeding Interest Payment Date.
(h) After the Fixed Rate Date, the State Treasurer shall, no later than the Business Day preceding each Interest Payment Date, withdraw from the Interest Account and remit by wire transfer to the Paying Agent an amount sufficient to pay all interest including Additional Interest and Additional Default Interest coming due on the Bonds on such Interest Payment Date.
(i) Payment shall be made by the Paying Agent, in the case of Bonds other than Bank Bonds, by check mailed by the close of business on the last day of the month immediately preceding the Interest Payment Date to the registered owner at his address as it appears on the registration books of the Paying Agent as of the close of business on the Record Date immediately preceding the Interest Payment Date and, in the case of Bank Bonds, as provided in Section 2.09 of the Reimbursement Agreement on each Interest Payment Date.
(j) Each notice that the Bank is required to give to the State Treasurer, Commonwealth of Virginia, 101 North 14th Street, James Monroe Building, Richmond, Virginia 23215, shall set forth the manner in which any amounts set forth in such notice were calculated.
| Board of Visitors minutes November 30, 1984 | |