1994-05-17 Resolution 91 - Laserfiche WebLink

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• Damage and Destruction of Leased Premises The Lease provides that, in the event the Leased Premises are partially or totally damaged or destroyed so as to render the same unfit, in whole or part, for its intended use: (i) it will then be the obligation of the Authority to restore and reconstruct the Leased Premises as promptly as may be done, unavoidable strikes and other causes beyond the control of the Authority excepted; provided, the Authority will not be obligated to restore or reconstruct the Leased Premises if the amount of the proceeds received from the insurance provided for in the Lease plus other money available therefor are insufficient for such purpose, or if the work cannot be completed within the period covered by rental value insurance; and (ii) the rent will be abated pro rata for the period during which the Leased Premises or any part thereof is unfit for its intended use. If the Authority is not obligated to restore and reconstruct the Leased Premises pursuant to the provisions described above, the insurance proceeds must be applied to the option to purchase price (see "Option to Purchase "). In such circumstances, proceeds of insurance will be used for extraordinary redemption of Bonds without premium. Furthermore. in certain circumstances, the Authority may direct application of insurance proceeds to the redemption of Bonds at the then current redemption price. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS - -TRUST AGREEMENT -- Insurance- -Use of Proceeds from Insurance." Option to Purchase The Lessee has the right and option, on any rental payment upon 30 days' written notice, to purchase the Leased Premises at a price equal to the amount required to enable the Authority to redeem the Bonds, pay the costs thereof, and liquidate the Authority if it is to be liquidated. In the event the Lessee has not exercised its option to purchase the Leased Premises, then upon expiration • of the Lease and full performance by the Lessee of its obligations under the Lease, the Leased Premises will be conveyed by the Authority to the Lessee. • Defaults The Lease provides that, if the Lessee defaults (i) in the payment of any rentals or other sums payable to the Authority under the Lease, (ii) by failing to comply with the terms of its resolution establishing funds for the payment of lease rentals, or (iii) in the observance of any other covenant, agreement or condition of the Lease, and such default continues for ninety (90) days after written notice to correct the same, the Authority may protect and enforce its rights by proceedings at law or in equity. TRUST AGREEMENT THE FOLLOWING IS A SUMMARY OF CERTAIN PROVISIONS CONTAINED IN THE TRUST AGREEMENT. THIS SUMMARY DOES NOT PURPORT TO BE A COMPREHENSIVE DESCRIPTION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE TRUST AGREEMENT. Creation of Funds and Accounts The Trust Agreement establishes the following funds and accounts to be held by the Trustee: C -2