2. MIDA Bond/NDSU - Laserfiche WebLink

2.8. OWNERSHIP OF BONDS. The Issuer may deem and treat the person in whose name the Bond is last registered in the Bond Register and by notation on the Bond whether or not such Bond shall be overdue, as the absolute owner of such Bond for the purpose of receiving payment of or on account of the principal, redemption price or interest and for all other purposes whatsoever, and the Issuer shall not be affected by any notice to the contrary. 2.9. LIMITATION ON BOND TRANSFERS. The Bonds have been issued without registration under state or other securities laws, pursuant to an exemption for such issuance; and accordingly the Bonds may not be assigned or transferred in whole or part, nor may a participation interest in the Bonds be given pursuant to any participation agreement, except in accordance with an applicable exemption from such registration requirements. 2.10. ISSUANCE OF NEW BONDS. Subj ect to the provisions of Section 2.9, the Issuer shall, at the request and expense ofthe Lender, issue new Bonds in aggregate outstanding principal amount equal to that of the Bonds surrendered, and oflike tenor except as to number and principal amount, and registered in the name of the Lender or such transferee as may be designated by the Lender. 2.11. ACCOUNTS. (a) Bond Account. There is hereby established with the Lender a University Facilities Revenue Bonds (NDSU Development Foundation Project) Bond Account (the "Bond Account") into which all payments of the principal of and interest on the Bonds shall be deposited and credited against the principal of and interest due on the Bonds. Sums shall be paid by the Corporation for deposit in the Bond Account as provided in the Loan Agreement. (b) Proceeds Account. There is hereby established with the Lender aU niversity Facilities Revenue Bonds (NDSU Development Foundation Project) Proceeds Account (the "Proceeds Account") into which the sale proceeds of the Bonds shall be deposited. Proceeds of the Bonds and earnings thereon shall be disbursed by the Lender to pay the cost of constructing and equipping the Facilities upon compliance with the provisions of the Loan Agreement. ARTICLE THREE GENERAL COVENANTS 3.1. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants that it will promptly payor cause to be paid the principal of and interest on the Bonds at the place and on the dates required, but solely from the source and in the manner provided herein and in the Bonds. The principal and interest are payable solely from and secured by revenues and proceeds derived from the Loan Agreement, or credited to the Bond Account or the Proceeds Account, which revenues and proceeds are hereby specifically pledged to the payment thereof in the manner and to the extent specified herein and in the Bonds, the Loan Agreement and the Pledge Agreement, and nothing in the Bonds or in this Bond Resolution shall be considered as assigning, pledging or otherwise encumbering any other funds or assets of the Issuer. -4-