1990-03-07 Minutes - Laserfiche WebLink

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