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

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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 of the event (or series of events} with respect to which the Net Proceeds ha~Te been collected, then the County may use the Net Proceeds (and only the Net Proceeds) to prepay the Certificates in part pursuant to [Section 3.01(c}] of the Trust Agreement; or (c) Otherwise the County will 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 in substantially the form of [Exhibit C] to the Trust Agreement. The Trustee is not required to honor any such requisition if an Event of Default is continuing, but the Trustee will honor requisitions as may be directed by the Insurer. Any repair or replacement paid for in ~~hole or in part out of such Net Proceeds will be the County's property and urill be part of the Mortgaged Property. ARTICLE VII WARRANTIES, REPRESENTATIONS AND COVENANTS 7.1. 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 pov~Ters necessary to enter into the transactions contemplated by this Contract and the Deed of Trust and to carry out. its obligations under tlus Contract. (b) The County u~•ill take no action that would adversely affect its existence as a political subdivision in good standing in the State, cause the County to be consolidated with or merge into another political subdivision of the State or permit one or more other political subdivisions of the State to consolidate with or 93861v2 j 4