Agenda - 03-02-2006-8bCC - Laserfiche WebLink

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awards or payments in good faith and with due diligence. Any Net Proceeds received by the County as a result of such claims uTill be used as provided in Sections 6.2 and 6.3. 6.2. Security Interest in Net Proceeds; Deposit and Disbursement. (a) The County grants a security interest in the Net Proceeds to the Trustee to secure the County's obligations under this Contract, subject to the further pro~Tisions of this Section. This Contract is intended as and constitutes a security agreement u~•ith respect to such security interest. All Net Proceeds uTill remain subject to the security interest provided for in this Section 6.2(a) until expended in compliance v~Tith the requirements of this Contract. (b) If the amount of Net Proceeds recei~Ted by the County from any single event or any single series of related events is less than $1,000,000, then the County will have no obligation to account to the Company or any other person or entity with respect to the use of such Net Proceeds. The County, hov~Tever, acknov~Tledges that its use of such funds may be constrained by the requirements of the Code and the County's covenant in Section 7.1(k). (c} If the amount of Net Proceeds received by the County from any single event or any single series of related events is at least $1,000,000, the County will cause such Net Proceeds to be paid to the Tnistee (i) for deposit in the Project Fund, if received before the Completion Date, or (ii} if received thereafter, far deposit in the Net Proceeds Fund. The County will thereafter provide far the application of all Net Proceeds so deposited in accordance ~~-ith Section 6.3. 6.3. 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; provided, however, that subsections (a) and (b) uTill be available to the County only if no E~Tent of Default is continuing. The County will notify the Company, the Trustee and the Insurer of its election witlun 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 Certificates, then the County may provide additional funds from any legal source and use such Net Proceeds and additional County funds to prepay the Certificates in full pursuant to [Section 3.01(c)] 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 93361v2 13