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5A1 Resolution No. 3674 (Approving of Form of Lease RDA Rental Revenue Bonds) - Signed
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5A1 Resolution No. 3674 (Approving of Form of Lease RDA Rental Revenue Bonds) - Signed
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6/25/2026 2:23:17 PM
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Dept of Community Investment
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of issue of the Bonds ("Code"), after taking into account other available moneys, to prevent the <br />Bonds from becoming arbitrage bonds under Section 148 of the Code. <br />(ii) The Lessee may, by resolution, pay Additional Rentals to enable the Lessor to <br />redeem or purchase Bonds prior to maturity. Rental payments due under this Section 2 shall be <br />reduced to the extent such payments are allocable to the Bonds redeemed or purchased by the <br />Lessor with such Additional Rentals. The Lessee shall be considered as having an ownership <br />interest in the Leased Premises valued at an amount equal to the amount of the Additional Rentals <br />paid pursuant to this subsection (b)(ii). <br />(c) Source of Payment of Rentals. The annual rentals set forth in Section 2(a) hereof <br />and the Additional Rentals shall be payable solely from the 2026 Improvements Principal and <br />Interest Account of the Redevelopment District Bond Fund (the "Bond Fund"). The Lessee may <br />pay the annual rentals and the Additional Rentals, or any other amounts due hereunder, from any <br />other revenues legally available to the Lessee; provided, however, the Lessee shall be under no <br />obligation to pay any annual rentals or Additional Rentals or any other amounts due hereunder <br />from any moneys or properties of the Lessee except the revenues deposited into the Bond Fund. <br />3. Payment of Rentals. All rentals payable under the terms of this Lease shall be <br />paid by the Lessee to the bank or trust company designated as Trustee ("Trustee") under the Trust <br />Indenture between it and the Lessor ("Indenture"), or to such other bank or trust company as may <br />from time to time succeed such bank as Trustee under the Indenture securing the bonds to be issued <br />by the Lessor to finance the acquisition and construction of the Leased Premises. Any successor <br />trustee under the Indenture shall be endorsed on this Lease at the end hereof by the parties hereto <br />as soon as possible after selection, and such endorsement shall be recorded as an addendum to this <br />Lease. All payments so made by the Lessee shall be considered as payment to the Lessor of the <br />rentals payable hereunder. <br />4. Abatement of Rent; Substitution. If any part of the Leased Premises is taken <br />under the exercise of the power of eminent domain, so as to render it unfit, in whole or part, for <br />use by the Lessee, it shall then be the obligation of the Lessor to restore and reconstruct that portion <br />of the Leased Premises as promptly as may be done, unavoidable strikes and other causes beyond <br />the control of the Lessor excepted; provided, however, that the Lessor shall not be obligated to <br />expend on such restoration or reconstruction more than the condemnation proceeds received by <br />the Lessor. <br />If any part of the Leased Premises shall be partially or totally destroyed, or is taken under <br />the exercise of the power of eminent domain, so as to render it unfit, in whole or part, for use or <br />occupancy by the Lessee, the rent shall be abated for the period during which the Leased Premises <br />or such part thereof is unfit or unavailable for use, and the abatement shall be in proportion to the <br />percentage of the Leased Premises which is unfit or unavailable for use or occupancy. <br />Notwithstanding the foregoing, the Leased Premises may be amended to add additional <br />property to the Leased Premises or remove any portion of the Leased Premises, provided however, <br />following such amendment, the rental payable under this Lease shall be based on the value of the <br />portion of the Leased Premises which is available for use, and the rental payments due under this <br />Lease shall be in amounts sufficient to pay when due all principal of and interest on all outstanding <br />Bonds. In the event that all or a portion of the Leased Premises shall be unavailable for use by the <br />Lessee, subject to the completion of any process required by law, the Lessor and the Lessee shall <br />4 <br />
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