University of Virginia Library

SECTION 211. Default of Bank Under Credit Facility.

If at any time any Bank shall default in its obligation to honor a Principal Drawing or a Tender Drawing (each as defined in the Reimbursement Agreement) under the Credit Facility or any Substitute Credit Facility or Alternate Credit Facility with respect to Bonds of any maturity, the Paying Agent shall no longer be required to purchase Bonds of such maturity that are tendered pursuant to Section 206(a) hereof or deemed to have been tendered pursuant to Sections 204, 402, 403 or 801 hereof and no Holder shall be entitled to any payment with respect to the purchase price of such Bonds from the University. However, notwithstanding any other provisions of this Resolution, beginning on the date of such default by the Bank, all Bonds of such maturity shall bear interest at the rate of fifteen percent (15%) per annum to and including the November 30 following the date on which a new Alternate Credit Facility is obtained pursuant to Section 402 hereof. Thereafter the Bonds shall bear interest at the rate determined in accordance with the other provisions of this Resolution. Upon a Bank default, the University agrees to use its best efforts to obtain an Alternate Credit Facility prior to the next December 1.