1994-05-17 Resolution 91 - Laserfiche WebLink

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Insurance Required After Completion of Improvements. After the completion of the improvements, 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 mortgaged property against physical loss or damage; and (ii) rent or rental value insurance. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS — 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 (which may occur if, for example, 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 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 such transfer occurs as the result of either of the events described parenthetically in the previous sentence, 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 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— LEASE-- Damage and Destruction of Leased Premises." is Events of Default and Remedies Events of Default. The following are each an "event of default" under the Trust Agreement: (i) Default in the payment on the due date of the interest on any Bonds; (ii) Default in the payment on the due date of the principal of or premium on any Bond, whether at the stated maturity thereof, or upon proceedings for the redemption thereof, or upon the maturity thereof by declaration; (iii) Default in the performance or observance of any other of the covenants or agreements of the Authority in the Trust Agreement, any supplemental agreement, or the Bonds, and the continuance thereof for a period of 60 days after written notice thereof to the Authority by the Trustee; (iv) The Authority: (a) admits in writing its inability to pay its debts generally as they become due, (b) files a petition in bankruptcy, (c) makes an assignment for the benefit of its creditors or (d) consents to or fails to contest the appointment of a receiver or trustee for itself or of the whole or any substantial part of the financed property or any income therefrom; (v) (a) The Authority is adjudged insolvent by a court of competent jurisdiction; (b) the Authority, on a petition in bankruptcy filed against the Authority, is adjudged a bankrupt; or (c) an order, judgment or decree is entered by any court of competent jurisdiction appointing, without the consent of the Authority, a receiver or trustee of the Authority or of the whole or any substantial part of the financed property, and any of the aforesaid adjudications, orders, judgments or decrees is not vacated, set aside or stayed within 60 days from the date of entry thereof; C-6