Common use of Basic Payments Clause in Contracts

Basic Payments. Draws Under Letter of Credit -------------------------------------------- (a) On or before 10:00 a.m. (Atlanta, Georgia time) on each Bond Payment Date, the Users shall pay to the Trustee, for the account of the Issuer, an additional amount required to pay the principal of, premium (if any) on the Bonds and shall deposit an amount necessary to pay the interest on the Bonds (other than Pledged Bonds) due and payable on each Bond Payment Date; provided, however, that (i) any amount already on deposit in the Bond Fund or Bond Purchase Fund on the due date of such Basic Payment and available for the payment of the principal of, premium (if any) and interest on the Bonds on such Bond Payment Date shall be credited against the amount of such Basic Payment, and (ii) any amount drawn by the Trustee pursuant to the Letter of Credit for the payment of the principal of, premium (if any) and interest on the Bonds on such Bond Payment Date shall be credited against such Basic Payment. (b) On each Bond Payment Date prior to 10:00 a.m. (Atlanta, Georgia time) the Trustee shall, without making any prior claim or demand on the Users for the payment of Basic Payments with respect to Bonds other than Pledged Bonds, make a draw on the Letter of Credit in an amount equal to the amount of principal of, premium (if any) and interest on the Bonds due and payable on such Bond Payment Date on Bonds other than Pledged Bonds. The Users shall receive a credit against Basic Payments for the amount so drawn. No draw shall be made under the Letter of Credit with respect to Pledged Bonds, and the Users shall receive no credit against Basic Payments with respect to Pledged Bonds for any amounts drawn under the Letter of Credit. (c) The Users hereby authorize and direct the Trustee to draw moneys under the Letter of Credit in accordance with the provision of the Indenture and this Loan Agreement to the extent necessary to pay the principal and purchase price of, premium (if any) and interest on the Bonds (other than Pledged Bonds) when due and payable pursuant to the Indenture and the Bonds. (d) All Basic Payments shall be made in funds immediately available to the Trustee at its Designated Office on the related Bond Payment Date. (e) The Users acknowledge, covenant, and agree that until the Indenture Indebtedness is paid in full the Users shall make Basic Payments in such amounts and at such times as shall be necessary to enable the Trustee to pay in full in accordance with the Indenture the principal and purchase price of, premium (if any) and interest on the Bonds (other than Pledged Bonds) when and as the same becomes due and payable.