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

Home Browse Search

to the event;provided that the Borrower certifies in writing to the Trustee that such additions, repairs and improvements are reasonably expected to be completed within twelve (12) months after the condemnation or taking. In such event, the Borrower shall proceed forthwith to construct additions,repairs or improvements and restore the Project Facilities to substantially the same condition and value as existed prior to the event causing such damage or destruction, and to the extent necessary to accomplish such addition,repair or improvement,the Borrower shall apply the Net Proceeds of any condemnation or taking received by the Borrower from the Trustee to the payment or reimbursement of the costs thereof. So long as no Default exists,the Borrower shall have the right to receive such Net Proceeds from the Trustee from time to time upon receipt by the Trustee of a Certificate of an Authorized Borrower Representative specifying the expenditures made or to be made or the indebtedness incurred in connection with such repairs and improvements and stating that such Net Proceeds,together with any of the moneys legally available for such purposes,will be sufficient to complete such repairs and improvements. In the event the Borrower shall elect this Option A,the Borrower shall complete the addition,repair or improvement with respect to the Project Facilities,whether or not the Net Proceeds of the condemnation or taking received by the Borrower for such purposes are sufficient to pay for the same. Net Proceeds not required for the addition, repair or improvement with respect to the Project Facilities shall be applied to the prepayment of the Bonds. Prior to commencement of the addition, repair or improvement, the Borrower shall deliver to the Trustee (i)one or more construction, equipment purchase or similar contracts providing for all work, materials and equipment required for the addition, repair or improvement, and in each case containing a fixed or guaranteed maximum price for the same,and in each case accompanied by an assignment of the contract to the Trustee (in a form reasonably satisfactory to the Trustee)as security for the Bonds and the Borrower's performance under this Agreement, (ii) all other applicable items related to such work described in Section 2.01 of the Disbursing Agreement(other than paragraphs (i), (j), (I) and (n)), and (iii)a written opinion of Bond Counsel to the effect that completion of the addition,repair or improvement and the operation of the Project Facilities by the Borrower after such work is completed,will not cause interest on any Tax-Exempt Bonds to be included in gross income for federal income tax purposes. (b) Option B -Redemption of the Bonds. In the event that the Borrower shall deliver to the Trustee a written estimate by an Independent person qualified to express such opinion(including an Independent licensed architect)that that the Project Facilities cannot be rebuilt, restored or replaced within 12 months from the date of the condemnation or taking by eminent domain,all outstanding Series 2001 Bonds(and all other outstanding Bonds redeemable because of such event)shall be redeemed in whole on the first Business Day for which notice can be given under the Indenture after the date of the notice given as to exercise of this Option B,and the Net Proceeds shall be deposited in the Optional Redemption Fund and shall be applied for that purpose. In such event,the applicable outstanding Bonds shall be redeemed at par plus accrued interest,and redemption shall be effected pursuant to the provisions of, in the manner,and with the effect provided in the Indenture. -38-