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1990-03-02 Minutes
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1990-03-02 Minutes
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The Commission covenants that it shall not encumber or permit any encumbrances on the <br />Improvements, except for certain Permitted Encumbrances, nor shall it sublet the <br />• Improvements or assign the Lease without the consent of the Authority. The Commission <br />covenants that it will not take any action or fail to take any action which would result in the loss <br />of the exclusion from gross income for federal tax purposes of interest on the Bonds pursuant <br />to Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"). The <br />Commission further covenants that it will not make any investment or do any other act which <br />would cause any Bond to be an "arbitrage Bond" within the meaning of Section 148 of the <br />Code. <br />The Authority grants the Commission the right and option, on any rental payment date, upon <br />30 days written notice, to purchase the Improvements at a price that will enable the Authority to <br />redeem all outstanding Bonds and pay certain related costs. If the Commission has not <br />already exercised its purchase option at the end of the term of the Lease and upon the full <br />discharge of all obligations pertaining thereto, the Authority will convey all of its interest in the <br />Improvements to the Commission. <br />If, during the term of the Lease, the Commission (a) defaults in the payment of rentals or other <br />sums payable to the Authority, (b) fails to comply with the .terms of the Lease, or (c) defaults in <br />the observance of any other covenants or agreements, and such default under (c) continues <br />for 90 days after written notice to correct such a default, the Authority may proceed to protect <br />and enforce its rights, either at law or in equity, by suit, action, mandamus or other <br />proceedings, whether for specific performance of any covenant or agreement or for the <br />enforcement of any other appropriate legal or equitable remedy. <br />For greater detail please refer to the Lease (not including certain Exhibits) provided in <br />Appendix III of this Official Statement. <br />• <br />Summary of Selected Provisions of the Trust Agreement <br />A Trust Agreement is to be executed between the Authority and First Interstate Bank of <br />Northern Indiana, N.A., the Trustee, in which Agreement the Authority pledges and assigns the <br />Lease and the Pledged Funds (as defined in Appendix IV of this Official Statement) to the <br />Trustee. The Trust Agreement creates a continuing pledge by the Authority to the bondholders <br />to pay the debt service on all Bonds from the Pledged Funds until the principal sum is fully <br />paid. The Authority additionally pledges to keep and perform all covenants and conditions <br />pursuant to the terms of the Trust Agreement. <br />The Authority covenants that it has and will preserve its interest in all property to be leased, <br />subject only to Permitted Encumbrances as defined in the Lease. The Authority covenants that <br />all lawful taxes, charges, and assessments levied upon the Improvements will be paid and that <br />the Improvements will be operated and maintained in good repair, working order and condition. <br />Under the Lease, the Commission is obligated to actually pay, as its expense, all costs of taxes <br />and assessments, and maintenance and use related to the Improvements. If the Authority, via <br />the Commission, fails to pay any tax, assessment, or other charge, the Trustee may pay such <br />charges which shall constitute an additional indebtedness of the Authority secured by the lien <br />of the Trust Agreement, prior and paramount to the lien of the Bonds and interest thereon. For <br />any such charges paid by the Trustee, the Authority will pay interest to the Trustee at the <br />highest rate of interest on any of the Bonds when sold. <br />The Authority covenants that it will not take any action or fail to take any action with respect to <br />the Bonds that would result in the loss of the exclusion from gross income for federal tax <br />• purposes of interest on the Bonds pursuant to Section 103(a) of the Code. The Authority <br />further covenants that it will not make any investment of Bond proceeds or do any other act <br />which would cause any Bond to be classified as an "arbitrage Bond" within the meaning of <br />-5- <br />
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