1994-05-17 Resolution 91 - Laserfiche WebLink

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• Treasury Regulations as may be applicable to the Bonds from time to time. This covenant shall survive payment in full or defeasance of the Bonds. Notwithstanding any provision of this Section, if the Authority shall provide to the Trustee an opinion of nationally recognized Bond counsel to the effect that- -any action required under this Section is no longer required, or to the effect that some further action is required, to maintain the exclusion from gross income of the interest on the Bonds pursuant to Section 103 of the Code, the Authority may rely conclusively on such opinion in complying with the provisions hereof. Sec. 5.09. The Authority covenants that it will not guarantee, endorse or otherwise become surety for or upon the indebtedness of others except by endorsement of negotiable instruments for deposit or collection in the ordinary course of business, and that it will,not sell its accounts receivable. 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 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 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 40 -25-