Agenda - 11-16-1993 - VIII-A (2)

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30( Improvements; provided,however, that any amounts received by the Trustee under said policies by way of refunds, dividends or otherwise, as aforesaid, shall be applied to the payment of the principal of and interest on the Bonds, and any surplus shall be paid over as a surplus on foreclosure. (n) promptly notify the Trustee of the commencement of any proceeding or investigation by or before any governmental body and of any action or proceeding in any court or before any arbitrator against, or in any way relating adversely to, the Corporation or the Project and any Improvements which, if adversely determined, could singly or when aggregated with all other such proceedings, investigations and actions if adversely determined, result in the suspension or revocation of any material license or permit required for the ownership or operation of the Project and any Improvements by the Corporation or have a material adverse effect on the Revenues, financial position,results of operations,fund balances or prospects of the Corporation or the Project and any Improvements. Section 7.15. Rate Covenant. (a) On or before the date hereof and before the commencement of each Fiscal Year, the Corporation will fix, establish and maintain, or cause to be fixed, established and maintained, such rates,rentals and charges for the provision of services in the Project and any Improvements, and revise, or cause to be revised, the same prior to the commencement of each Fiscal Year, as necessary, as will produce the cash portion of Revenues, other than net proceeds of insurance or condemnation awards and other extraordinary items,at least equal in such Fiscal Year to the total of (1) Operating Expenses and contractual obligations relating to the Project and any Improvements which are not included in the definition of Operating Expenses budgeted for such Fiscal Year plus(ii) 120% of the aggregate of the debt service to become due during such Fiscal Year. (b) The Corporation will,so long as Bonds are Outstanding,within 30 days after the end of each Fiscal Year deliver to the Trustee an Officer's Certificate reflecting the Corporation's compliance with the rate covenant. (c) If the Corporation is unable to comply with the rate covenant, the Corporation will, at least 90 days after the end of each Fiscal Year and with the approval of the Trustee cause a consultant to submit a report to the Trustee showing for the next Fiscal Year the projected cash portion of Revenues, other than net proceeds of insurance or condemnation awards and other extraordinary items, debt service, Operating Expenses and contractual obligations relating to the Project and any Improvements which are not included in the definition of Operating Expenses budgeted for such Fiscal Year and setting forth the recommendation of the Consultant for the revision of rates, rentals and charges, if necessary, in order to satisfy the covenant set forth in paragraph(a). The Corporation shall,within 180 days after the date of submission to the Trustee of the consultant's report described in the preceding sentence, cause a Consultant to submit a followup report to the Trustee to determine the Corporation's compliance with the recommendation of the consultant's initial report. Section 7.16. Operating Budgets, The Corporation will adopt an Operating Budget covering the fiscal operations of the Project and any Improvements for the Fiscal Year not later than the first day of such Fiscal Year, and will file the same with the Trustee. The Operating Budget will set forth for such Fiscal Year the estimated cash portion of Revenues, the principal of and interest on the Bonds due and payable or estimated to become due and payable during such Fiscal Year and estimated Operating Expenses, debt service on the Bonds in monthly allotments and itemized capital expenditures and the 30