Res 1978-055 - Laserfiche WebLink

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the security thereof of the nature required to assure $uch payment and to safeguard the loan hereunder, including, in case the Bonds are payable in whole or in part from any special sources of revenues, provisions designed to assure the production of such revenues and the application thereof to the extent required for the payment and security of the Bonds and interest thereon, including the maintenance of reasonable reserves. g. So long as the Government holds any of the Bonds, the Grantee/ Borrower shall furnish operating statements for the Project, and any facilities, the revenues of which are pledged to payment of the Bonds, in such form and substance for such periods as may be requested by the Government. h. The Grantee/Borrower shall during construction and thereafter so long as the Government holds any Bonds, carry insurance, and during construction require each contractor and subcontractor to carry insurance, of such types and in such amounts as the Government may specify with insurance carriers acceptable to the Government. i. If required by the Government, the Grantee/Borrower will enter into a Trust Agreement designating a bank acceptable to the Govern- ment as Trustee and containing such other terms and provisions as may be satisfactory to the Government. The Trust Agreement shall provide for the payment of all revenues from the Project into an account with the Trustee with provisions for the payment of current expenses therefrom and the transfer of the net remaining funds into appropriate additional accounts for the purpose of providing a maintenance reserve, funds for current bond service, reserves for bond service and bond redemption, all in a manner and form acceptable to the Government. The funds in all such accounts shall be held in trust and shall be secured as required by law for deposit of Government funds. j. In the event a Trust Agreement is not required by the Government, the Grantee/Borrower may be required by the Government to establish such accounts, perform such duties and comply with such terms and conditions as the Government might ordinarily require of a Trustee in a Trust Agreement. k. The Grantee/Borrower shall establish such accounts and maintain such accounting procedures as may be necessary or helpful in the accurate accounting for and segregation of Project revenues and for the allocation of expenses, costs of maintenance and overhead. 1. Moneys on deposit to the credit of accounts and funds established and maintained in conformity with the provisions of this Agreement or to fund payments from net revenues may be invested upon request by the Borrower, in direct obligations of, or obligations, the principal of and the interest on which are guaranteed by the U. S. Government. Any interest earned on deposits of grant funds in advance of costs incurred shall inure to the benefit of the Government. - 10 - I I