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

Home Browse Search

substantially equal annual installments of principal or substantially equal annual installments of principal and interest. (b) Except as otherwise provided in subsection (a) above with respect to Balloon Indebtedness which is also Variable Rate Indebtedness, as hereinafter defined, in determining the amount of debt service payable on Variable Rate Indebtedness for any future period, interest on such indebtedness for any period of calculation(the "Determination Period") shall be computed by assuming that the rate of interest applicable to the Determination Period is equal to the average annual rate of interest on similar securities(calculated in the manner in which the rate of interest for the Determination Period is to be calculated) which was in effect for the 24 month period prior to a date selected by the Borrower plus two percent (2%), which selected date is within 45 days immediately preceding the beginning of the Determination Period, as certified by a banking or investment banking institution knowledgeable in matters of variable rate financing or, if it is not possible to calculate such average annual rate of interest,by assuming that the rate of interest applicable to the Determination Period is equal to the rate of interest then in effect on such Variable Rate Indebtedness. In addition, debt service shall include any continuing credit enhancement, liquidity and/or remarketing fees for the relevant period. Variable Rate Indebtedness means any portion of Long-Term Indebtedness the interest rate on which varies periodically such that the interest rate at a future date cannot accurately be calculated. Section 6.19 Subordinate Debt. Notwithstanding the restrictions set forth in this Article VI, the Borrower may incur such Subordinate Debt as in the Borrower's judgment may be deemed expedient for the payment of working capital so long as the consent thereto is obtained from a majority by principal amount of the holders of then outstanding Subordinate Debt (other than holders of Subordinate Debt to be fully repaid from proceeds of the new Subordinate Debt)and prior notice thereof is given to a Majority of Holders; provided however,that the terms thereof shall expressly provide that such Indebtedness is payable only from Net Revenues Available for Subordinate Debt Service so long as any Senior Bonds are outstanding,and any lien securing the Indebtedness and all rights of payment and enforcement shall be subordinated to the payment of outstanding Senior Bonds, enforcement of rights in respect thereof and the lien of the Subordinate Mortgage,as evidenced by an agreement between the holder of such Subordinate Debt and the Trustee(consented to by the Borrower). Section 6.20 Restrictions on Transfers and Payments. The Borrower shall not make any payment, transfer any money or property or engage in any transaction with another person except if the Borrower shall receive fair value for the same; provided that any transfer of funds or payment shall be permitted so long as no Event of Default and no Event of Nonpayment has occurred or is existing (a) if deemed necessary or desirable by the Borrower in order to maintain or continue the status of the Sole Member as a 501(c)(3) Organization, or (b) if by treating any such payment or transfer as an Operating Expense, the rate covenant of Section 6.13 will not have been violated for any period (disregarding provisions relating to the engagement of a Management Consultant). Section 6.21 Additional Indemnities. In addition to any other provision herein,and not by way of any limitation on any other protection herein afforded to the City,the Trustee or any Holder, the Borrower agrees to pay,and protect, indemnify and save the City,the Trustee and each Holder harmless from and against,all liabilities, losses,damages,costs and expenses(including reasonable attorneys' fees and expenses of such persons),causes of action, suits,claims,demands and judgments of -50-