PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

Home Browse Search

THE LOAN AGREEMENT The following is a summary of certain provisions of the Loan Agreement. This summary does not purport to be comprehensive or definitive. This summary is qualified in its entirety by reference to the Loan Agreement. A copy of the Loan Agreement is available during the offering period from the Underwriter and, after the date of issuance of he Bonds, from the Trustee. Capitalized terms employed in this summary are defined in this APPENDIX A under the caption "DEFINITIONS OF CERTAIN TERMS." Loan Payments The City agrees, upon the terms and conditions in the Loan Agreement, to lend $8,285,000' to the Borrower, but solely from the gross sale proceeds derived from the issuance of the Series 2001 Bonds ($8,285,000*) inclusive of the discount at which the Original Purchaser purchased the Series 2001 Bonds. The Loan will be fully funded on the Date of Issuance of the Series 2001 Bonds by the deposit of all sale proceeds from the sale of the Series 2001 Bonds(net of any Original Purchaser's discount)with the Trustee. As security for all outstanding Bonds,the Borrower hereby assigns and pledges to the Trustee all Monthly Net Project Revenues and all Tax Increment Revenues, and further agrees for each month to deposit with the Trustee on the 15th day of each month(or if such day is not a Business Day,on the next succeeding Business Day),commencing on and after the date on which any portion of the Project Facilities has been placed in service,all Monthly Net Project Revenues and all Tax Increment Revenues for application as provided in the Indenture. Furthermore,irrespective of any deposit of Monthly Net Project Revenues and Tax Increment Revenues (or sufficient Monthly Net Project. Revenues and Tax Increment Revenues for the following purposes), the Borrower agrees that it will deposit with the Trustee monies sufficient to fully fund up all funds and accounts described in the Indenture and sufficient to permit the Trustee to make any other payments described in the Indenture. Additional Payments The Borrower also agrees: (a) To pay to the Trustee,promptly after being billed,until the principal of and the interest on the Bonds shall have been fully paid or provision for the payment thereof shall have been made in accordance with the provisions of the Indenture (i) all Ordinary Trustee Fees and Expenses, but with credit being given against such payments for any amounts transferred from the Revenue Fund to the Trustee for such purpose,and(ii)the reasonable fees and charges of the Trustee for necessary extraordinary services rendered by it and extraordinary expenses incurred by it under the Indenture, as and when the same become due; provided, that the Borrower may, without creating a default hereunder, contest in good faith the