1990-12-28 Resolution 30 - Laserfiche WebLink

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a iw,,, ... ~ ... ~~ ~:°~ z r ~.,. ~~ ~ ~~ 6.30 To evidence its intention to exercise the right of redemption, the Redevelopment Authority shall, not .less han 45 days prior to the date selected .for ~ redemption, file with the Trustee written notice of its intention. to redeem, designating the date fixed for .redemption, and if less than all of the outstanding Lease Rental Bonds are to be redeemed, stating the aggregate " principal amount of Lease Rental Bonds which the Redevelopment Authority desires .~ to redeem. :lotice of redemption shall be mailed to the address of the registered owners of the Lease Rental Bonds to be redeemed as shown on the registration record of the Trustee not less than 30 days prior to .the date fixed for redemption. Any notice shall specify the date and place of redemption. Interesx on the .Lease Rental Bonds so called for redemption shall cease on the redemption date fixed in such notice, if sufficient funds are available at the place of redemption to pay the redemption price, including interest accrued to the redemption date, on the date so named. Failure to give such notice by mailing, or any defect in such notice,- with respect to any Lease Rental Bond shall not affect the validity of the redemption of any Lease Rental Bonds. RISK FACTORS TO BE CONSIDERED BY INVESTORS Prospective investors in the Lease Rental Bonds should be aware of the following risk factors: . 1. The Lease Rental Bonds are payable solely from lease rental payments from the Commission to the Authority and other Pledged Funds as defined in the Trust Indenture. The Authority has no taxing power. Under the Lease., the lease payments will not begin until the later of July 28, 1992 or completion of the Projects. Zn the event the Projects are not completed, the lease payments would not be made. 2. In reference to the risk described in number 1 above, in the event there is excessive delay in completion of the Projects so as to be delayed beyond July 28, 1992 sufficient revenues :may not be available to meet the 'interest payment due on'August 1, 1992 and subsequent interest and principal payments. 3. In the event the Projects should ever be totally or substantially destroyed, the lease rental shall be abated during the period in which the Projects are unfit for their intended use. However, rental value insurance will be available to make Lease Rental Bond payments during the time the cease rental is abated, for a period of up to two years. If either.(i) the cost of reconstruction of the Projects would exceed. the amount of insurance proceeds or (ii) such reconstruction cannot be completed within the period of time covered by rental value insurance, the insurance proceeds will be applied to the redemption of all outstanding Lease Rental Bonds and the full discharge of all obligations pertaining thereto. 4. No provision has been made either for redemption of the Lease Rental Bonds or for an increase in the interest rate on the Bonds in the event that interest on the Lease Rental Bonds becomes subject to income taxation. • 5. In the event of delayed billing, collection, or distribution of property .taxes by the county auditor, sufficient funds may not be available to the Commission in time to make lease rental payments when due. -3-