Common use of Discharge of Liability on Bonds Clause in Contracts

Discharge of Liability on Bonds. Upon the deposit with the Paying Agent, escrow agent, or other fiduciary, at or before maturity, of money or securities in the necessary amount (as provided in Section 6.3 (Deposit of Money or Securities with Paying Agent)) to pay or redeem any Outstanding Bond (whether upon or prior to its maturity or the redemption date of such Bond), provided that, if such Bond is to be redeemed prior to maturity, notice of such redemption shall have been given as in Article 5 provided or provision satisfactory to the Paying Agent shall have been made for the giving of such notice, then all liability of the District in respect of such Bond shall cease, terminate, and be completely discharged, except that thereafter (i) the Owner thereof shall be entitled to payment of the Bond Obligation or Redemption Price of and interest on such Bond by the District and the District shall remain liable for such payment, but only out of such money or securities deposited with the Paying Agent, escrow agent, or other fiduciary as aforesaid for their payment, subject, however, to the provisions of Section 6.4 (Moneys Unclaimed after Bonds Are Due and Payable); and (ii) the Owner thereof shall retain its rights of transfer or exchange of Bonds as provided in Section 2.5 (

Discharge of Liability on Bonds. Upon the deposit with the Paying Fiscal Agent, escrow agent, agent or other fiduciary, in trust, at or before maturity, of money or securities in the necessary amount (as provided in Section 6.3 5.3 (Deposit of Money or Securities with Paying Fiscal Agent)) to pay or redeem any Outstanding Bond (whether upon or prior to its maturity or the redemption date of such Bond), provided that, if such Bond is to be redeemed prior to maturity, notice of such redemption shall have been given as in Article 5 IV (Redemption of Bonds) provided or provision satisfactory to the Paying Fiscal Agent shall have been made for the giving of such notice, then all liability of the District City in respect of such Bond shall cease, terminate, and be completely discharged, except that thereafter (i) the Owner thereof shall be entitled to payment of the Bond Obligation or Redemption Price principal of and premium, if any, and interest on such Bond by the District City and the District City shall remain liable for such payment, but only out of such money or securities deposited with the Paying Agent, escrow agent, or other fiduciary Fiscal Agent as aforesaid for their payment, subject, however, to the provisions of Section 6.4 5.4 (Moneys Unclaimed after Bonds Are Due and Payable); and (ii) the Owner thereof shall retain its rights of transfer or exchange Payment of Bonds as provided After Discharge of Fiscal Agent Agreement). The City may at any time surrender to the Fiscal Agent for cancellation by it any Bonds previously issued and delivered, which the City may have acquired in Section 2.5 (any manner whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired.