AgdaPkt 2003-11-03 - Laserfiche WebLink

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`1.6.37 OBLIGATION FOR WHICH THE CITY OR THE STATE IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY OR THE STATE HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. Additional Payments. The City is obligated under we Lease Agreement to pay when due, during the term of the Lease Agreement, in addition to :he Lease Payments, (1) all costs and expenses incurred by the Authority to comply with the provisions of the Indenture, including without Imitation, all Costs of Issuance (as defined in the Indenture) (to the extent not paid from amounts on deposit in the Costs of Issuance Fund), (ii) indemnification, compensation and expenses due to the Trustee [and the Insurer], and (iii) and all reasonable costs and expenses of attorneys, auditors, engineers and accountant (the "Additional Payments "). Such costs and expenses shall be payable as additional amounts of rental in consideration of the right of the City to the use and occupancy of the Leased Property. Amounts payable to holders of the Bonds are not derived from Additional Payments. Covenant to Appropriate Funds for Lease Payments In the Lease Agreement, the City covenants to take such action as may be necessary to include all Lease Payments due under the Lease Agreement in each of its budgets during the term of the Lease Agreement and to make the necessary annual appropriations for all such Lease Payments, except to the extent such Lease Payments are payable from amounts on deposit in the Lease Payment Fund. Action on Default Should the City default under the Lease Agreement, the Trustee, as assignee of the Authority under the Lease Agreement, may exercise any and all remedies available pursuant to _ law or granted pursuant to the Lease Agreement; provided, however, that notwithstanding anything in the Lease Agreement or in the Indenture to the contrary, there is no right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable. The Authority and the Trustee (as assignee of the Authority) may terminate the Lease and re -lease all or any portion of the Leased Property. See "RISK FACTORS - Limited Recourse on Default" herein. For a description of the events of default and permitted remedies of the Trustee (as assignee of the Authority) contained in the Lease Agreement and the Indenture, see "APPENDIX A - Summary of Principal Legal Documents" herein. I C .;170 I A Reserve fund (the "Reserve Fund ") is established pursuant to the Indenture and will be held by the Trustee in trust for the benefit of the Owners of the Bonds and shall initially be funded, and shall continuously be funded, in an amount equal to the Reserve Requirement The "Reserve Requirement" is defined as the lesser of (1) 10% of the original principal amount of the Bonds, (ii) an amount equal to maximum annual Debt Service payable by the Authority between the date of such calculation and the final maturity of the Bonds, or (iii) 125% of average annual Debt Service payable under the Indenture. If, two Business Days prior to any Interest Payment Date, the money in the Payment Fund does not equal the amount required to be paid to the Bond Owners on such date, the Trustee shall transfer from the Reserve Fund to the Payment Fund the amount of such insufficiency to make delinquent Lease Payments on behalf of the City. -11-