429

403

having regard to maturity, interest rate and price, such price not to exceed the principal of such bonds plus the amount of the redemption premium, if any, which would on the next redemption date be paid to the holders of such bonds under the provisions of Article III of this Resolution if such bonds should be called for redemption on such date, but no such purchase shall be made by the Board within the period of forty-five (45) days next preceding any interest payment date on which such bonds are subject to call for redemption under the provisions of this Resolution.

(b) Subject to the provisions of Section 301 of this Resolution and of paragraph (c) of this Section, the Board shall call for redemption on each interest payment date on which definitive coupon bonds or a portion of any temporary bond without coupons is subject to redemption such amount of such definitive coupon bonds or such portion of a temporary bond without coupons then subject to redemption as, with the redemption premium, if any, and all necessary and proper expenses incurred in connection therewith, will exhaust such excess as nearly as may be; provided, however, that not less than Five Thousand Dollars ($5,000) principal amount of definitive coupon bonds or portion of a temporary bond without coupons shall be called for redemption under the provisions of this Section at any one time. Such redemption shall be made pursuant to the provisions of Article III of this Resolution. Not less than thirty (30) days before the redemption date there shall be withdrawn from the Dormitory System Bond and Interest Sinking Fund Account of 1963 and set aside or deposited with the Paying Agents the respective amounts required for paying the interest on and the principal or instalment of principal and redemption premium of the bonds so called for redemption, and all expenses in connection with such redemption shall be paid from the Dormitory System Bond and Interet Sinking Fund Account of 1963.

(c) Such excess in the Dormitory System Bond and Interest Sinking Dund Account of 1963 shall be allocated by the Treasurer of the Board for the purchase or redemption of bonds of each Series then outstanding so that the moneys so allocated shall be in proportion, as nearly as practicable, to the respective total amounts of the bonds of each Series issued under the provisions of this Resolution; provided, however, that if the bonds of any Series shall not then be subject to redemption and if the Treasurer of the Board shall at any time be unable to exhaust the moneys applicable to the bonds of such Series in the purchase of such bonds under the provisions of paragraph (a) of this Section, such moneys or the balance of such moneys, as the case may be, shall be held by the Treasurer of the Board in a separate account in a Depositary and, as soon as it is feasible, applied to the retirement of bonds of such Series; and provided, further, that, subject to the provisions of this Resolution and the resolution or resolutions authorizing any Series of bonds then outstanding issued under Section 211 hereof, the Board shall have the right to call for redemption any or all of the outstanding bonds redeemable without the payment of and redemption premium prior to calling for redemption any bonds redeemable upon the payment of a redemption premium. Nothing herein is intended to change in any manner the provision in Section 407 of this Resolution respecting the redemption of Series F bonds with excess moneys remaining in the Construction Account.

Section 508. Subject to the provisions of this Resolution, moneys held for the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963 shall be held in trust and applied (a) to the payment of interest on the bonds as such interest falls due, (b) to the payment of the principal or instalments of principal of the bonds at their respective maturities, or (c) to the purchase or redemption of definitive coupon bonds or the redemption of temporary bonds without coupons or portions thereof before maturity, and such moneys are hereby pledged to and charged with the payments mentioned in this Section.

Whenever the moneys held for the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963 shall be sufficient for paying the principal of and the redemption premium, if any, and the interest accrued on all bonds then outstanding under the provisions of this Resolution, such moneys shall be applied to the payment or to the purchase or redemption of such bonds.