1990-05-15 Resolution 22 - Laserfiche WebLink

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Sec. 5.10. The Authority covenants that it will not acquire any property, real or personal, subject to an existing mortgage or other encumbrance, except as permitted by Sec. 5.11. Sec. 5.11. The Authority covenants that it will not incur any indebtedness secured by this Agreement other than the Bonds unless either (a) the Project cannot be completed without unreasonable delay which would threaten a default in the payment of principal or interest on the Bonds without such additional indebtedness, and such additional indebtedness is payable only from the Operation and Reserve Fund (to the extent that such Fund is not needed to pay necessary incidental expenses of the Authority) and from property and income of the Authority remaining or received after all Bonds authorized herein have become due and payable and sufficient funds have been provided to pay all principal and interest due on such Bonds and all fees of the Trustee then due and payable, or (b) such additional indebtedness is payable soley from income of the Authority other than the rental payments provided for in the Lease as long as any of the Bonds are outstanding. This section shall not be construed to prohibit the issuance of refunding Bonds and the pledging of lease rentals to be received after the. redemption of the Bonds. Sec. 5.12. The Authority covenants that the proceeds of the Bonds deposited in the Construction Account shall be used for the following purposes: • (First) The payment of the balance, if any, of the purchase price of the real estate herein specifically described; (Second) The payment of the cost of construction of the Project on said real estate in accordance with the provisions of Section 5.13 hereof. The cost of erection shall include but not be limited to the items set forth in Sec. 3.01 hereof. (Third) Any balance in excess of one hundred fifty percent (1500) of the amount of any disputed claims of contractors and work to be repaired remaining after the completion of the Project in accordance with Sec. 5.13 hereof may be obligated within a period of one (1) year thereafter for any one or more of the following purposes upon written request of the Lessee: (a) For the purchase of equipment for said Project; or (b) For the improvement of said Project. (Fourth) Any balance in excess of one hundred fifty percent (150%) of the amount of any disputed claims of construction and work to be repaired remaining unobligated after one (1) year from -24- •