Common use of Discharge of Liability on Bonds Clause in Contracts

Discharge of Liability on Bonds. Upon the deposit with the Bond Trustee, in trust, at or before maturity, of money or securities in the necessary amount (as provided in Section 10.03 hereof) to pay any Outstanding Bond, whether upon or prior to its maturity, then all liability in respect of such Bond shall cease, terminate, become void and be completely discharged and satisfied, except only that thereafter the Holder thereof shall be entitled to payment of the principal of and interest on such Bond, and such payments will be payable under such Bond but only out of the money or securities deposited with the Bond Trustee as aforesaid for its payment; provided further, however, that the provisions of Section 10.04 hereof shall apply in all events. The Bonds may at any time be surrendered to the Bond Trustee for cancellation by the Borrower, which Bonds may have been acquired in any manner whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired.

Discharge of Liability on Bonds. Upon the deposit with the Bond Trustee, in trustdeposit, at or before maturity, of money or securities in the necessary amount (as provided in Section 10.03 9.02(c) hereof) to pay or redeem any Outstanding Bond, Bond (whether upon or prior to its maturitymaturity or the redemption date of such Bond), then all liability of the District in respect of such Bond shall cease, terminate, become void cease and be completely discharged and satisfieddischarged, except only that thereafter the Holder Owner thereof shall be entitled only to payment of the principal of and interest on such BondBond by the District, and the District shall remain liable for such payments will be payable under such Bond payment, but only out of the such money or securities deposited with the Bond Trustee Paying Agent as aforesaid for its such payment; , provided further, however, that the provisions of Section 10.04 hereof 9.02(d) shall apply in all events. The Bonds District may at any time be surrendered surrender to the Bond Trustee Paying Agent for cancellation by the Borrowerit any Bonds previously issued and delivered, which Bonds the District may have been acquired in any manner whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired.