University of Virginia Library

Search this document 

 
collapse section
 
 
collapse section
collapse section
 
 
 
 
 
 
 
 
 
 
 
 
 
SECTION 209. Payment of Principal of Bonds.
 
 
 
 
collapse section
 
 
 
 
 
 
collapse section
 
 
 
collapse section
 
 
collapse section
 
 
 
 
 
 
collapse section
 
 
 
collapse section
 
 
collapse section
 
 
 
 
 
 

SECTION 209. Payment of Principal of Bonds.

(a) Not later than (i) the Business Day preceding each November 20, commencing November 20, 2002, and (ii) the tenth day preceding any date on which principal of Bank Bonds (other than Bank Bonds the principal of which is payable on demand) is due, the Paying Agent shall give notice to the State Treasurer, Commonwealth of Virginia, 101 North 14th Street, James Monroe Building, Richmond, Virginia 23215, of the amount required to pay principal of the Bonds then coming due, whether by mandatory redemption or maturity and the State Treasurer shall thereupon transfer a sum equal to such amount from the Special Fund to the Sinking Fund Account. The State Treasurer shall remit such sums from the Sinking Fund Account to the Paying Agent by wire transfer, from Net Revenues made available by the University, not later than the Business Day preceding the date such sums are due to pay principal of the Bonds.

(b) The Paying Agent shall, no later than 3:00 p.m., New York time, on the Business Day preceding each day on which principal is due prior to and including the Fixed Interest Date, on which principal of the Bonds comes due, whether by optional redemption, mandatory redemption, acceleration or maturity, submit the necessary draw certificates to ensure that, on each December 1 prior to and including the Fixed Rate Date, the Paying Agent shall draw on the Credit Facility or any Substitute Credit Facility or Alternate Credit Facility an amount sufficient to pay the principal of all Bonds other than Bank Bonds becoming due upon presentation and surrender thereof. Prior to and on the Fixed Rate Date, the Paying Agent shall pay all principal coming due on all Bonds other than Bank Bonds, whether at maturity, upon mandatory or optional redemption or upon acceleration, solely from moneys drawn on the Credit Facility or any Substitute Credit Facility or Alternate Credit Facility. No drawing under the Credit Facility or any Substitute Credit Facility or Alternate


0038

Credit Facility shall be made or proceeds of any drawing applied to pay the principal of any Bank Bonds.

(c) Notwithstanding anything to the contrary in the Resolution, Bonds paid or deemed paid with the proceeds of a drawing on the Credit Facility shall be transferred to the Bank in exchange for the proceeds of such drawing and shall not be deemed to be paid for purposes of the Resolution, shall remain Outstanding and shall continue to be an obligation of the University until such time as the principal amount thereof and interest accrued thereon (including Additional Interest and Additional Default Interest) has been paid by the University to the Bank as reimbursement for such drawings. Principal of and interest on the Bank Bonds shall be paid at the times and in the manner set forth in Sections 202, 208 and 209 hereof. Bonds which are not surrendered by the prior Holders thereof on the date of maturity, redemption or purchase thereof shall be entitled only to the amounts held by the Paying Agent for the payment of such Bonds, and the University shall cause to be executed and the Paying Agent shall authenticate and deliver to the Bank or other purchaser of such Bonds, a new Bond of like tenor in lieu of and in substitution for such Bond.

(d) Prior to and on the Fixed Rate Date, 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 and the money provided by the State Treasurer pursuant to subsection (a) hereof, the Paying Agent shall notify the Bank that a principal payment is to be made and use the sums received from the State Treasurer pursuant to subsection (a) hereof (i) to reimburse the Bank for such draw and (ii) to pay any principal then due on Bank Bonds.

(e) Following the Fixed Rate Date, within one (1) hour after the Paying Agent has received the money provided by the State Treasurer pursuant to subsection (a) hereof the Paying Agent shall notify the Bank (if it is the Holder of any Bank Bonds) that a principal payment is to be made and shall use the sums received from the State Treasurer pursuant to subsection (a) hereof to pay the principal of the Bonds, including Bank Bonds, when due.