1994-05-17 Resolution 91 - Laserfiche WebLink

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have been provided to pay all principal and interest due on the Bonds and all fees of the Trustee then due and • payable, or (ii) such additional indebtedness is payable solely 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 covenant 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. Covenants of the Authority In the Trust Agreement, the Authority makes certain 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. Use of Proceeds of Bonds. The Authority covenants that the proceeds of the Bonds held in the Construction Account will be used for the following purposes: (i) the payment of the balance, if any, of the purchase price of the real estate for the Project; (ii) the payment of the costs of the financed improvements; (iii) any balance in excess of 150 % of the amount of any disputed claims of contractors and work to be repaired remaining after completion may be obligated within a period of one year thereafter, upon written request of the Lessee, for the purchase of equipment for the improvements or for further • improvements; (iv) any balance in excess of 150 % of the amount of any disputed claims and work to be repaired remaining unobligated after one year from the filing of the Affidavit of Completion will be transferred to the Sinking Fund; and (v) any balance remaining after payment of all obligations authorized by clause (iii) above will be transferred to the Sinking Fund within ten days after the last payment of such obligations. 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 act in any other manner which would adversely affect such exclusion. Insurance Insurance Required During Construction of Improvements. During the construction period, the Authority is required to carry or cause other persons to carry for its benefit builder's risk insurance in the amount of 100 % of the insurable value of the improvements against physical loss or damage thereto, and bodily injury and property damage insurance. All construction contracts will require the contractor to carry such insurance as will protect the contractor from liability under Indiana Worker's Compensation and Worker's Occupations Diseases Acts. • C -5