1998-10-19 Resolution 130 - Laserfiche WebLink

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. In the Trust Agreement, the Authority makes cex`tain covenants to the Trustee for the benefit of Bondholders, including but not limited to the following. Books of Record and Account. The Authority covenants that proper books of record and account will be kept in which full, true and correct entries will be made of all dealings or transactions of or in relation to the properties, business and affairs of the Authority. The Authority will from time to time furnish the Trustee such information as to the property of the Authority as the Trustee reasonably requests and such other information and reports as the Trust Agreement requires. Tax Covenants. In order to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, the Authority represents, covenants and agrees that, among other things, it will not take any action or fail to take any action with respect to the Bonds that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the Bonds pursuant to Section 103 of the Code, nor will the Authority actin any other manner which would adversely affect such exclusion. Insurance Insurance Coverage Requirements The Authority is required to carry or' cause to be carried, and the Lessee in the Lease has agreed to carry, (i) insurance on the Leased Premises against physical loss or damage; and (ii) rent or rental value insurance. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS -- SUMMARY OF SELECTED PROVISIONS OF THE LEASE -- Insurance." Use of Proceeds from Insurance. Subject to the .terms of the Lease, the proceeds of such insurance (other than rental value insurance which represents lease rental payments) received by the Trustee will be applied to the restoration and reconstruction of the damaged or destroyed .property.... In the. event the Authority does not commence to repair, replace or reconstruct the damaged or destroyed property within 90 days after damage or destruction, or the Authority abandons or fails diligently to pursue -the same, the Trustee may make or complete such repairs, replacements or reconstructions. If the Authority does not proceed in good faith with repair, replacement or reconstruction for 120 days, the Trustee upon receipt of the insurance money must, unless the Trustee proceeds to make such repairs, replacements or reconstructions, transfer the insurance proceeds to the Sinking Fund. If the cost of such repair, replacement or reconstruction exceeds the amount of insurance proceeds and other amounts available for such purpose, or the repair, replacement or reconstruction cannot be completed within the period covered by rental value insurance, the insurance .proceeds will be applied to the option to purchase price under the Lease, and the Bonds will be subject to extraordinary optional redemption in whole or in part at any time at a price equal to 100% of the principal amount thereof plus accrued interest to the date of redemption. Furthermore, if at any time the property is totally or substantially destroyed, and the amount of insurance money is sufficient to redeem all then outstanding Bonds and such Bonds are then subject to redemption, the Authority, with the written approval of the Lessee, may direct the Trustee to use said money for the purpose of redeeming all Bonds outstanding at the then current redemption price. See SUMMARY OF CERTAIN LEGAL DOCUMENTS -- SUMMARY OF SELECTED PROVISIONS OF THE LEASE -- Damage and Destruction of Leased Premises."