RD 89-21 re MPROSD 89-56 - Laserfiche WebLink

Browse Search

JJJ 5 of its purposes, Any indebtedness of the Agency to the District arising from this Agreement shall not be subordinated to any other indebtedness of the Agency if such other indebtedness is incurred by the Agency subsequent to such indebtedness to the District; provided, however, that the Agency may request the District to subordinate its payments due under this Agreement to allow the Agency to pledge all or any portion of the Tam Increment in order to secure repayment of Agency long -term indebtedness incurred for the Project. The District shall have the right of approval of such requests provided that the Agency first demonstrates the Agency's anticipated ability to repay such indebtedness incurred for the Project without demand being made on the payments due the District under the terms of this Agreement. such right of approval shall not be unreasonably withheld. such demonstration by the Agency shall show that the Tax Increment needed to make the payments due under this Agreement will be used In the cash -flow of the financing only for additional security (debt service coverage ) and that the Tax Increment will be adequate, over the tern of the indebtedness, to pay 100% of the actual debt service thereon, to pay the Agency's obligations under this Agreement, and to pay other obligations of the Agency whether statutory or contractual which are or would be superior to Agency's obligations under this Agreement, Any such demonstration shall include, without limitations, revenue forecasts and debt service schedules.