|
Section 5,8. Advances, If the City shall fail to perform any of its obligations under this
<br />Article V, the Authority or the Assignee may, but shall not be obligated to, take such action as
<br />may be necessary to cure such failure, including the advancement of money, and the City shall
<br />be obligated to repay all such advances as soon as possible, with interest at the rate of twelve
<br />percent (12%) per annum from the date of the advance to the date of repayment,
<br />Section 5,9. Installation of C:- y's Equipment. The City may, at any time and from time to
<br />time in its sole discretion and at its own expense, install or permit to be installed items of
<br />equipment or other personal property in or upon any portion of the Property. All such items
<br />shall remain the sole property of the City in which neither the Authority nor the Assignee shall
<br />have any interest and may be modified or removed by the City at any time provided that the
<br />City shall repair and restore any and all damage to the Property resulting from the installation,
<br />modification or removal of any such items. Nothing in this Lease Agreement shall prevent the
<br />City from purchasing or leasing items to be installed pursuant to this Section 5.9 under a lease
<br />or conditional sale agreement, or subject to a vendor's lien or security agreement, as security for
<br />the unpaid portion of the purchase price thereof, provided that no such lien or security interest
<br />shall attach to any part of the Property.
<br />Section 5.10, Liens. The City shall not, directly or indirectly, create, incur, assume or
<br />suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to
<br />the Property, other than the respective rights of the Authority and the City as provided herein
<br />and Permitted Encumbrances. Except as expressly provided in this Article V, the City shall
<br />promptly, at its own expense, take such action as may be necessary to duly discharge or remove
<br />any such mortgage, pledge, lien, charge, encumbrance or claim, for which it is responsible, if
<br />the same shall arise at any time, The City shall reimburse the Authority for any expense
<br />incurred by it in order to discharge or remove any such mortgage, pledge, lien, charge,
<br />encumbrance or claim.
<br />Section 5.11. Private Activity Bond Limitation, The City shall assure that proceeds of the
<br />Lease Agreement are not so used as to cause the Lease Agreement to satisfy the private
<br />business tests of section 141(b) of the Code or the private loan financing test of section 141(c) of
<br />the Code.
<br />Section 5,12, Federal Guarantee Prohibition. The City shall not take any action or permit
<br />or suffer any action to be taken if the result of the same would be to cause the Lease Agreement
<br />to be "federally guaranteed" within the meaning of section 149(b) of the Code,
<br />Section 5.13. Rebate Requirement. The City shall take any and all actions necessary to
<br />assure compliance with section 148(f) of the Code, relating to the rebate of excess investment
<br />earnings, if any, to the federal government, to the extent that such section is applicable to the
<br />Lease Agreement.
<br />Section 5.14. No Arbitrage. The City shall not take, or permit or suffer to be taken, any
<br />action with respect to the proceeds of the Lease Agreement which, if such action had been
<br />reasonably expected to have been taken, or had been deliberately and intentionally taken, on
<br />the effective date of the Lease Agreement, would have caused the Lease Agreement to be
<br />"arbitrage bonds" within the meaning of section 148 of the Code.
<br />-13-
<br />
|