430

404

Section 509. Sufficient moneys shall be withdrawn from the Dormitory System Bond and Interest Sinking Fund Account of 1963 from time to time and set aside or deposited in trust with the Paying Agents for paying the principal of and the interest on the bonds as the same shall fall due.

Section 510. All moneys which shall have been withdrawn from the Dormitory System Bond and Interest Sinking Fund Account of 1963 or shall habe been received from any other source and set aside or deposited with the Paying Agents for the purpose of paying any of the bonds hereby secured or portion thereof, either at the maturity thereof or upon call for redemption, or for the purpose of paying any maturing coupons appertaining to any of the definitive coupon bonds hereby secured or the interest on any temporary bond without coupons, shall be held in trust for the respective holders of such bonds or coupons. But any moneys which shall be so set aside or deposited and which shall remain unclaimed by the holders of such bonds or coupons for a period of six (6) years after the date on which such bonds or such coupons or interest shall have become due and payable shall be paid to the Board or to such officer, board or body as may then be entitled by law to receive the same, and thereafter the holders of such bonds or coupons shall look only to the Board or to such officer, board or body, as the case may be, for payment and then only to the extent of the amounts so received without any interest thereon, and the Depositary or Depositaries and the Paying Agents shall have no responsibility with respect to such moneys.

Section 511. All bonds paid, redeemed or purchased, either at or before maturity, together with all unmatured coupons, if any, appertaining thereto, shall be cancelled upon the payment, redemption or purchase of such bonds and shall be delivered to the Treasurer of the Board when such payment, redemption or purchase is made. All interest coupons shall be cancelled upon their payment and delivered to the Treasurer of the Board.

ARTICLE VI.

Depositaries of Moneys, Security for Deposits and Investment of Funds.

Section 601. All moneys deposited with any Depositary under the provisions of this Resolution shall be trust funds under the terms and shall not be subject to lien or attachment by any creditor. Such moneys shall be held in trust and applied in accordance with the provisions of this Resolution. All moneys deposited with any Depositary hereunder shall be continuously secured, for the benefit of the Board and the holders of the bonds, either (a) by Lodging with a bank or trust company approved by the Treasurer of the Board as custodian, as collateral security, direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States Government, or other marketable securities eligible as security for the deposit of trust funds under regulations of the Board of Governors of the Federal Reserve System, having a market value (exclusive of accrued interest) not less than the amount of such deposit, or (b) as to all or any part of such deposit, by lodging with the Treasurer of the Board the indemnifying bond or bonds of a surety company or companies qualified as surety for United States Government deposits and qualified to transact business in the State of North Carolina in a penal sum not less than the amount of moneys so deposited or such part thereof, such bond or bonds to be approved in writing by the Treasurer of the Board, or (c) if the furnishing of security as provided in clause (a) of this Section is not permitted by applicable law, then in such manner as may then be required or permitted by applicable state or Federal laws and regulations regarding the security for, or granting a preference in the case of, the deposit of trust funds; provided, however, that it shall not be necessary for either of the Paying Agents to give security for the deposit of any moneys with it for the payment of the principal of or the interest on any bonds issued hereunder.