11-14-01 2. LOAN AGREEMENT - Laserfiche WebLink

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Section 3.04 Obligation of the Borrower to Cooperate in Furnishing Documents to the Trustee. The Borrower agrees to cooperate in furnishing to the Trustee(i)the documents and directions that are required to effect payments out of the Project Fund,and(ii)the documents referred to in the Indenture required for the authentication and delivery of the Series 2001 Bonds. Such obligations are subject to any provision of this Agreement or the Indenture requiring additional documentation. Section 3.05 Establishment of Disbursing Agreement. In addition to the provisions of Section 3.03 and 3.04 above, the Borrower shall comply with all applicable provisions of the Disbursing Agreement,including the provisions hereof and thereof that the Borrower ensure that at all times monies in the Project Fund are sufficient to finance the total costs of acquiring,constructing and equipping the Project. Section 3.06 Borrower Required to Provide Funds in Event Project Fund Insufficient. The City makes no warranty,either express or implied,that the moneys,which will be paid into the Project Fund and which under the terms hereof and the Disbursing Agreement will be available for payment of Project Costs will be sufficient to pay such costs. The Borrower agrees that it shall pay or cause to be paid all Project Costs and that to the extent such Project Costs exceed the available amount on deposit in the Construction Account, it shall not be entitled to any reimbursement therefor from the City,the Trustee,or the Holders of any of the Bonds,nor shall it be entitled to any diminution in or postponement of payments to be made under any provision hereof. Section 3.07 Investment of Moneys in the Project Fund. Any moneys held as a part of the Project Fund shall be invested or reinvested by the Trustee, at the written direction of an Authorized Borrower Representative,to the extent permitted by law,as set forth in the Indenture. Section 3.08 Inspection of Project Facilities. The Trustee and its duly authorized agent shall have the right at all reasonable times to examine and inspect and for that purpose to enter upon the Land and any building thereon, and shall also have such rights of access thereto as may be reasonably necessary to assure that the acquisition, construction, installation and equipping of the Project are proceeding in accordance with the provisions of this Agreement and to assure that the Project Facilities are being properly maintained in accordance herewith. Section 3.09 Abandonment of Project. If the Borrower at any time prior to the completion of the Project abandons the same or ceases work thereon and fails to resume work thereon within thirty(30) days after written notice from the Trustee to the Borrower stating that such abandonment or cessation has begun(except where such cessation in work is caused by labor disputes,fire,unusual delay in transportation, unavoidable casualties or any other causes beyond the control of the Borrower or any contractor) and requesting that work on the Project be resumed, or fails to complete the Project in accordance with the Project Plans and Specifications, or makes changes in the Plans and Specifications in violation of the requirements of hereof,the Trustee may declare such failure to be an Event of Default, and, in addition to the other remedies provided in this Agreement,it may enter into and take possession of the Project Facilities and perform any and all work and labor necessary to complete the Project substantially according to the Project Plans.The Borrower hereby grants the Trustee a right of entry for the foregoing purpose. All sums expended in completion of the Project shall be deemed to have been paid to the Borrower. For this purpose, the Borrower hereby constitutes and appoints the Trustee its true and lawful attorney-in-fact,with full power of substitution in the premises,to complete the Project in the name of the Borrower. The Borrower hereby empowers said attorney as follows: (a) To use any funds of the Borrower, including any balance which may be held in escrow,and any funds in the Construction Account for the purpose of completing the Project in accordance with the Project Plans; -20-