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Agreement from the User shall immediately become due and payable as provided in
Sections 5.2 and 7.2 of the Agreement.
While any principal installment on the Bonds or interest is unpaid, the
Corporation covenants not to exercise any of the remedies of default specified
in Section 7.2 of the Agreement without prior written consent of the Bank; provided
that no such consent is required for the Corporation to enforce its rights under
Sections 5.2(c), 6.3, 6.7 and 7.3 of the Agreement.
Upon the occurrence of an Event of Default, the Bank may pursue any available
remedy at law or in equity by suit, action, mandamus or other proceeding to enforce
the payment of the principal installments, premium, if any, and interest on the
Bonds and to enforce and compel the performance of the duties and obligations of
the Corporation as herein set forth.
No remedy by the terms of this Resolution conferred upon or reserved to the
Bank is intended to be exclusive of any other remedy, but each and every such remedy
shall be cumulative and shall be in addition to any other remedy given to the Bank
or the holder of the Bonds existing at law, in equity or by statute, and no delay
or omission to exercise any right, power or remedy accruing upon any Event of De-
fault shall impair any such right, power or remedy or shall be construed to be a
waiver of any such Event of Default or acquiescence therein; and every such right,
power or remedy may be exercised from time to time as often as may be deemed expedient.
All moneys received pursuant to any right given or action taken under the
provisions of this Section or under the provisions of Article VII of the Agreement
(after payment of the costs and expenses of the proceedings resulting in the collection
of such moneys and of the expenses, liabilities and advances incurred or made by the
Corporation, the Bank or any holder of the Bonds), except for all moneys received
by the Corporation pursuant to Sections 5.2(c), 6.3, 6.7 and 7.3 of the Agreement,
and all moneys in the Construction Fund at the time of the occurrence of an Event of
Default shall be deposited in the Debt Service Fund and all such moneys in the Debt
Service Fund shall be applied to the payment of the principal installments of,
premium, if any, and interest on then due and unpaid upon the Bonds to the person
entitled thereto.
Whenever moneys are to be applied pursuant to the provisions of this Section,
such moneys shall be applied at such times, and from time to time, as the Bank shall
determine, but in any event within 2 business days after deposit of such moneys in the
Debt Service Fund. The Bank shall give such notice as it may deem appropriate of the
deposit with it of any such moneys and of the fixing of any such date.
Whenever all principal installments of, premium, if any and interest on the
Bonds have been paid under the provisions of this Section and all expenses of the
Bank and the Corporation have been paid, any balance remaining in the Debt Service
Fund shall be paid to the User.
With regard to any default concerning which notice is given to the Corporation
under the provisions of thsi Section, the Corporation hereby grants the User full
authority for the account of the Corporation to perform or observe any covenant or
obligation alleged in said notice not to have been performed or observed, in the name
and stead of the Corporation with full power to do any and all things and acts to
the same extent that the Corporation could do in order to remedy such default.
Section 16. As security for the due and punctual payment of the principal of,
premium, if any, and interest on the Bonds, the Corporation hereby assigns to the
Bank all revenues and receipts derived by the Corporation under the pursuant to the
Agreement (except any payments made pursuant to Sections 5.2(c), 6.3, 6.7, and 7.3
of the Agreement relating to indemnification, payment of certain taxes and expenses
of the Corporation) and all rights and remedies of the Corporation under the Agreement
to enforce payment thereof.
Section 17. That the proceeds of sale of the Bonds are and shall be loanded to
the User solely for the purpose of paying the costs of acquiring and constructing the
Project under and pursuant to the Agreement, attached hereto and marked Exhibit B and
incorporated herein by reference, and said Agreement is hereby approved and the
President and Secretary of the Board are hereby authorized and directed to execute
said Agreement for and on behalf of the Corporation and as the act and deed of this
Board.