1988-06-14 Minutes - Laserfiche WebLink

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~ K 4 k Summary of Selected Provisions of the Trust Agreement A Trust Agreement was executed on June I, 1988 between the Authority and First Interstate Bank of Northern Indiana, N. A., the Trustee, in which Agreement the Authority pledges and assigns the Lease and the Pledged Funds (as defined in Appendix D of this Official Statement) to the Trustee. The Trust Agreement creates a continuing pledge by the Authority to the bondholders to pay the debt service on all bonds from the Pledged Funds until the principal sum is fully paid. The Authority additionally pledges the lease rentals of the Parking Facility and pledges to preserve good and in as feasible title to all such property. The Authority covenants to pay all lawful taxes, charges, and assessments levied upon the Facility and to operate and maintain the property in good repair, working order and condition. If the Authority fails to pay any tax assessment or other charge, the Trustee may pay such charges with interest thereon at the highest rate of interest on any of the Bonds when sold, which shall constitute an additional indebtedness of the Authority secured by the lien of the Trust Agreement. Per the Lease Agreement, the Commission is obligated to pay, as its expenses, all costs of taxes and assessments, and maintenance and use related to the Facility. The Authority covenants that 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 tax purposes of interest on the Bonds. The Authority further covenants that it will not make any investment of Bond proceeds, directly or indirectly, which would cause the Bonds to be classified as "arbitrage Bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code") or .the Arbitrage Regulations. However, the Authority covenants to pay from time to time all amounts required to be rebated to the United States pursuant to Section 148(f) of the Code and any Treasury Regulations, and specifically covenants to pay amounts determined under Section 3.04, the Rebate Amounts, as described in the Letter of Instructions. The Trustee agrees to comply with all instructions of the Authority given in accordance with the Letter of Instructions. The Authority covenants that the proceeds of the Bonds shall be used for the following purposes in the following order of priority. I. The. payment of the balance, if any, of the purchase price of the real estate. 2. The payment of the cost of construction of the Parking Facility. 3. Any balance in excess of I50% of any disputed claims of contractors and work to be repaired remaining after completion of the Facility may be obligated, within one year thereafter for the purchase of equipment for the Facility, for the purchase of property adjacent to the Facility, or for improvement of the Facility. The Authority covenants further that it will bring suit to mandate the Commission to levy a tax to pay the rental provided in the Lease Agreement if such rental is more than 60 days in default. The Authority further covenants that upon the receipt by the Trustee of the proceeds of the Bonds it will immediately proceed to construct the Facility in accordance with the plans and specifications referred to in the Lease Agreement, and will complete such construction with all practicable expedition. 1+ -