Agenda - 11-16-2010 - 4k - Laserfiche WebLink

Browse Search

5.3. Use of Net Proceeds. The County may elect to proceed under either • subsection (a), (b} or (c) with respect to Net Proceeds deposited with the Trustee. The County shall notify the Company and the Trustee of its election within 60 days after the date of the deposit. (a) If the amount of Net Proceeds is equal to at least 75% of the outstanding principal of the Bonds, then the County may provide additional funds from any legal source and use such Net Proceeds and additional County funds to prepay the Bonds in full pursuant to Section 3.01(b) of the Trust Agreement; (b) If as a result of event (or series of events) giving rise to the Net Proceeds (i) the County has lost beneficial use of at least 51 % of the Pledged Facility of which it had beneficial use prior to such event or (ii) the damaged portion of the Pledged Facility cannot be restored to its prior condition within six months after the event (or series of events) with respect to which the Net Proceeds have been collected, then the County may use the Net Proceeds (and only the Net Proceeds) to prepay the Bonds in part pursuant to Section 3.01(b) of the Trust Agreement; or (c) Otherwise the County shall use the Net Proceeds and other available funds for the completion or for repair and restoration of the Mortgaged Property. The County will not be entitled to any reimbursement of any funds paid pursuant to this subsection, nor will the County be entitled to any postponement or diminution of its obligation to • make Contract Payments as a result of any such contribution. Determinations as to the extent of loss described in (b) above will be made by an Appropriate Consultant and will be in form and substance reasonably acceptable to the Trustee. If the County decides to proceed pursuant to subsection (c) above, the Trustee will disburse Net Proceeds for the payment of such costs upon receipt of requisitions provided by the County and in form and substance reasonably acceptable to the Trustee. Any repair or replacement paid for in whole or in part out of such Net Proceeds will be the County's property and will be part of the Mortgaged Property. ARTICLE VI WARRANTIES. REPRESENTATIONS AND COVENANTS 6.1. By the County. The County warrants, represents and covenants (all such warranties, representations and covenants being continuing) as follows: (a) The County is a duly organized and validly existing political subdivision of • the State. The County has all powers necessary to enter into the transactions io