1990-03-07 Minutes - Laserfiche WebLink

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Section 148 of the Code or the Arbitrage Regulations. 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. The Authority covenants that the proceeds of the Bonds shall be used for the following purposes in the following order of priority. 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 Improvements. 3. Any balance in excess of 150% of any disputed claims of contractors and work to be repaired.. remaining after completion of the Improvements may be obligated, within one year thereafter, for the purchase of equipment related to the Improvements or for improvement of the Improvements. 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 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 Improvements in accordance with the plans and specifications referred to in the Lease, and will complete-such construction with all practicable expedition. The Authority covenants that during the construction of the Improvements it will carry or cause other persons to carry builder's risk insurance at 100% of the insurable value of the Improvements, bodily injury insurance and property damage insurance (in amounts specified in the Trust Agreement), and insurance to protect the contractors from liability under Indiana Workers' Compensation and Workers' Occupational Diseases Acts. After completion of the Improvements, the Authority will carry insurance on the Improvements equal to the greater of (a) the purchase option price under the Lease or (b) 100% of the full replacement cost of the Improvements and will carry rental value insurance equal to the full rental value of the Improvements for two years against physical loss or damage. Under the Lease, the Commission is obligated to carry sufficient insurance to meet all the aforementioned requirements applicable after completion of the Improvements. If the Authority neglects to obtain such insurance, the Trustee may procure such insurance which shall be repaid by the Authority upon demand and 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. However, the Trustee is not obligated to procure such insurance unless fully indemnified against this expense and furnished with the means to incur such expenses. 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 insurance policies will clearly indicate that any proceeds under the policies will be payable to the Trustee. In the event the Improvements should be destroyed so as to render them unfit for their intended use, the Trustee will apply the insurance proceeds to the reconstruction of the destroyed Improvements if (i) the cost of reconstruction does not exceed the insurance proceeds and (ii) such reconstruction .can be completed within the period covered by rental value insurance. If either or both conditions shall not exist, the insurance proceeds shall be used to redeem all the outstanding Bonds. The Authority covenants to keep proper books of record and account which will be furnished to the Trustee upon request. On or before 120 days after completion of the Improvements, the Authority will furnish the Trustee with a full audit and report, certified by an independent certified public accountant. • • r~ ~_~ -6-