AgdaPkt 2013-05-06 - Laserfiche WebLink

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Exhibit A April 19, 2013 City of Redwood City CONFIDEN"6.2.C. - Page 10 SECURITY: Obligation to be issued as an abatement lease obligation of the City of Redwood City, repayable through lease rental payments from any legally available sources of revenues of the Borrower. Obligation to be secured by a leasehold interest in property with insurance replacement value of approximately $6,600,000. The property being leased includes the real property and improvements thereon constituting a fire station that houses the City's fire protection department and certain emergency services. Subject property is located at address: 755 Marshall Street Redwood City, CA 94063. An appropriate policy of title insurance is required and interest in the Ground Lease. The final documentation will include, among other things the following financial and reporting covenants: Financial Reportin� Repuirements: 1) City to provide Annual CPA Audited (unqualified) financial statements within 270 days of fiscal year end. 2) City to provide approved operating budget annually within 30 days of fiscal year end. 3) City shall furnish at Bank's request such additional information that Bank may from time to time reasonably request. Annual disclosure information, if any, may be provided via EMMA. Renresentations,Warranties and Additional Covenants: 1) Standard representations including but not limited to: no adverse litigation, City has not defaulted or non-appropriated on past obligations, and indemnification from hazardous materials. 2) Notices of (i) any default on any obligation, (ii) material litigation, (iii) material governmental proceedings. 3) Default rate of 5.00% over the Obligation's proposed rate if payment is not made within 10 days of due date. 4) Additional representations and warranties, and other affirmative and negative covenants that Bank considers customary and reasonably appropriate to the transaction, as well as customary events of default. 5) City to covenant to take all such actions as may be necessary to include all lease rental payments and all annual insurance premiums required to insure the leased property, in each of its annual budgets during the term of the Financing, and to make the necessary annual appropriations for all such lease payments and insurance premiums. 6) City will maintain insurance naming Bank as additional insured as is typical for a financing of this nature including but not limited to a 24 month rental interruption insurance policy on the subject property. 7) City to maintain, repair, and make replacements to the leased property in a timely manner at its own cost and expense, so as to fully maintain the full property in a good condition for use as intended. 8) City to keep the leased property free and clear of all liens, charges and encumbrances other than those permitted by Bank; to pay for all utilities and related charges for the leased property