SECTION 604. Application of Money in Redemption Account.
(a) Prior to and on the Fixed Rate Date, money held for the
credit of the Redemption Account shall be transferred to the
Paying Agent one Business Day prior to the date of redemption and
shall be applied by the Paying Agent on the date of redemption to
reimburse the Bank for drawings made under the Letter of Credit or
any Substitute Credit Facility or Alternate Credit Facility to pay
the redemption price of Bonds to be optionally redeemed. Within
one (1) hour after the Paying Agent has received the money drawn
on the Credit Facility to pay principal of all Bonds (other than
Bank Bonds) being redeemed and has received the amounts specified
in the preceding sentence, the Paying Agent shall notify the Bank
that a payment of principal on redemption is to be made and that
the Bank shall be reimbursed.
- (b) After the Fixed Rate Date money held for the credit of
the Redemption Account shall be applied to the purchase or redemption
of Bonds, as follows:
- (i) Subject to the provisions of subparagraph (iii) of
this Section, the State Treasurer shall endeavor to purchase
and cancel Bonds or portions thereof, whether or not such
Bonds or portions thereof shall then be subject to
redemption, at the most advantageous price obtainable with
reasonable diligence, such price not to exceed the redemption
price that would be payable on the next redemption date to
the Holder of such Bonds under the provisions of Article V
hereof if such Bonds or portions thereof should be called for
redemption on such date from the money in the Redemption
Account. The State Treasurer shall pay the interest accrued
on such Bonds or portions thereof to the date of settlement
therefor from the Interest Account and the purchase price
from the Redemption Account.
- (ii) Subject to the provisions of subparagraph (iii) of
this Section, the State Treasurer shall call for redemption
on each Interest Payment Date such amount of Bonds or
portions thereof as, with the redemption premium, if any,
will exhaust the money then held for the credit of the
Redemption Account as nearly as may be practicable; provided,
however, that not less than Fifty Thousand Dollars ($50,000)
principal amount of Bonds shall be called for redemption at
any one time. Such redemption shall be made pursuant to the
provisions of Article V hereof. Not later than 10:00 A.M. on
the redemption date the State Treasurer shall withdraw from
the Interest Account and from the Redemption Account and wire
transfer to the Paying Agent, in Federal Reserve or other
immediately available funds, the respective amounts required
for paying the interest on and the redemption price of the
Bonds or portions thereof so called for redemption; and
- (iii) Money in the Redemption Account shall be applied by
the State Treasurer to the purchase or the redemption of
Bonds then Outstanding in accordance with the latest Officer's
Certificate filed by the University with the State
Treasurer designating the Bonds to be purchased or redeemed.
In the event no such Officer's Certificate is filed, the
State Treasurer shall apply such money to the purchase or
redemption of such Bonds as he shall determine.
Upon the retirement of any Bonds by purchase or redemption
pursuant to the provisions of this Section, the State Treasurer
shall file with the University and the Paying Agent a statement
identifying such Bonds and setting forth the date of purchase or
redemption, the amount of the purchase price or the redemption
price of such Bonds and the amount paid as interest thereon.
