The investments of the Reserve Account shall be valued on August 1
of each year at the lower of cost, market or amortized value exclusive of
accrued interest, except that investments with a maturity of one year or less
shall be valued at par.
All Investment Income of the Reserve Account, as and when received,
shall be deposited into the Interest Account.
Section 5.04 Investments.
Money held for the credit of the various funds and accounts held by
the Trustee shall be invested at the direction of the Board in Permitted
Investments. Any investments held for the credit of the Interest Account, the
Principal Account and the Series A Redemption Account shall mature or be
subject to redemption not later than the respective dates when the money held
for the credit of such funds and accounts will be required for the purposes
thereof. Any investment of money on deposit in the Reserve Account shall
mature not later than the final maturity of the Series A Bonds.
Obligations so purchased as an investment of money in any such fund
or account, and any interest bearing time deposits made with respect to such
money, shall be deemed at all times to be a part of such fund or account, and
the interest received thereon and any profit realized from such investment
shall be credited to such fund or account, and any loss resulting from such
investment shall be charged to such fund or account; provided, however, that
the interest accruing thereon and any profit realized or any loss realized upon
the maturity or disposition of such investments prior to the completion of the
Series A Hospital Project financed through the issuance of the Series A Bonds,
shall be credited to, or charged against, the Series A Construction Account and
the Trustee shall remit the net amount thereof no less often than once during
each bond year to the State Treasurer for deposit to the Series A Construction
Account. The Trustee, shall sell at the best price obtainable or present for
redemption any obligations so purchased whenever it shall be necessary so to do
in order to provide moneys to meet any payment or transfer from any such fund
or account. Neither the Trustee nor the Board shall be liable or responsible
for any loss resulting from any such investment.
ARTICLE VI. FINANCIAL COVENANTS.
Section 6.01. Limitations on Additional Indebtedness.
The Board agrees that it will not incur any Additional Indebtedness
other than Additional Indebtedness consisting of one or more of the following
(a) Long-Term Indebtedness if prior to incurrence of such
Indebtedness one of the following conditions is met:
(1) there is delivered to the Trustee and the State
Treasurer an Officer's Certificate (accompanied by the report
of the Auditor of the Commonwealth or an independent certified