Common use of Issuance of the Bonds; Application of Proceeds Clause in Contracts

Issuance of the Bonds; Application of Proceeds. To provide funds to make the Loan for purposes of refunding the 1992 Bonds and assisting the Borrower in the financing of the 1998 Project, the Issuer will issue, sell and deliver the Project Bonds upon the order of the Underwriter as provided in the Bond Purchase Agreement. The Project Bonds will be issued pursuant to the Indenture in the aggregate principal amount, will bear interest, will mature and will be subject to redemption as set forth therein. The Borrower hereby approves the terms and conditions of the Indenture and the Project Bonds, and the terms and conditions under which the Project Bonds will be issued, sold and delivered. The proceeds from the sale of the Project Bonds shall be loaned to the Borrower and paid over to the Trustee for the benefit of the Borrower and the Holders of the 1992 Bonds and the Bonds and deposited as provided in Sections 5.01 of the Indenture. Pending disbursement pursuant to Section 3.4 hereof, the proceeds deposited in the Project Fund, together with any investment earnings thereon, shall constitute a part of the Revenues assigned by the Issuer to the payment of Bond Service Charges as provided in the Indenture. At the request of the Borrower, and for the purposes and upon fulfillment of the conditions specified in the Indenture, the Issuer may provide for the issuance, sale and delivery of Additional Bonds and loan the proceeds from the sale thereof to the Borrower.

Issuance of the Bonds; Application of Proceeds. To As a condition to User's obligations under this Agreement and to provide funds to make the Loan for purposes of refunding the 1992 Bonds and assisting the Borrower User in the financing of the 1998 ProjectProject or to reimburse the User for the financing of the Project and the Project Site, the Issuer will issue, sell and deliver the Project Bonds upon in the order of the Underwriter as manner provided in the Bond Purchase Placement Agreement. The Project Bonds will be issued pursuant to the Indenture in the aggregate principal amount, will bear interest, will mature and will be subject to redemption as set forth therein. The Borrower User hereby approves the terms and conditions of the Indenture and the Project Bonds, and the terms and conditions under which the Project Bonds will be issued, sold and delivered. The proceeds from the sale of the Project Bonds shall be loaned to the Borrower User and paid over to the Trustee for the benefit of the Borrower User and the Holders of the 1992 Bonds and the Bonds and deposited as provided in Sections Section 5.01 of the Indenture. Pending disbursement pursuant to Section 3.4 hereof, the proceeds deposited in the Project Fund, together with any investment earnings thereon, shall constitute a part of the Revenues assigned by the Issuer to the payment of Bond Service Charges as provided in the Indenture. At the request of the BorrowerUser and with the approval of the Department and the Attorney General of Texas, to the extent required by law, and for the purposes and upon fulfillment of the conditions specified in the Indenture, the Issuer may provide for the issuance, sale and delivery of Additional Bonds and loan the proceeds from the sale thereof to the BorrowerUser.