Agenda - Council - 08/13/2013 - Laserfiche WebLink

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(o) Use its best efforts to maintain Income Available for Debt Service of at least 110% of the principal and interest due on the Bonds and any Additional Bonds in each Fiscal Year. In the event the School's Income Available for Debt Service is less than 110% of the principal and interest due on the Bonds and any Additional Bonds in any Fiscal Year, the School shall retain an Independent Consultant to review and analyze the reports required by the Pledge Agreement, to inspect the Project and the School's operation and administration and to make such recommendations as to the operation and administration of the School and the Schoolhouse as such Independent Consultant deems appropriate. Notwithstanding the immediately preceding sentence, regardless of whether the School has retained an Independent Consultant, if at the end of the Fiscal Year 2013 or any subsequent Fiscal Year, the Income Available for Debt Service as of the end of such Fiscal Year is less than 100% of the principal and interest due on the Bonds and any Additional Bonds (as evidenced by the School's audited financial statements for such Fiscal Year), then the Trustee may declare an Event of Default or exercise one or more of the remedies permitted under the Loan Agreement and the Indenture. Assignment and Leasing Subject to the covenants set forth in the transfer section of the Loan Agreement, the Loan Agreement may be assigned and the Schoolhouse leased, as a whole or in part, by the Company without the necessity of obtaining the consent of either the Issuer or the Trustee, subject, however, to each of the following conditions: (i) no assignment or lease will relieve the Company from primary liability for any obligations under the Loan Agreement, and in the event of any such assignment or lease the Company will continue to remain primarily liable for payment of the amounts specified in the Loan Agreement and for performance and observance of the other agreements on its part provided to be performed and observed by the Company to the same extent as though no assignment or lease had been made; (ii) the assignee or lessee must assume the obligations of the Company under the Loan Agreement to the extent of the interest assigned or leased; (iii) the assignee or lessee must receive no greater interest in the Schoolhouse than that held by the Company; in particular, any assignment or lease must be granted only subject to the rights of the Issuer and the Trustee under the Loan Agreement and the Indenture, and must terminate upon any foreclosure of the Company's rights under- the Loan Agreement or under the Mortgage; and (iv) the Company must, at least 10 days prior to the execution of such assignment or lease, furnish or cause to be furnished to the Issuer and the Trustee a true and complete draft copy of each assignment, assumption of obligation or lease, as the case may be and an opinion from a nationally recognized bond counsel to the effect that the assignment or lease will not cause interest on the Outstanding Series 2013A Bonds to be included in the gross income of the owners thereof for purposes of federal income taxation, and a form of opinion from Independent Counsel that the assignment or lease has been accomplished in accordance with State law and the Loan Agreement Defaults The Loan Agreement provides that any one or more of the following events will constitute an "Event of Default": (a) Failure by the Company to pay the amounts required to be paid under the Loan Agreement at the times specified therein, provided, however, that if a payment default is caused by the failure of the State to make payments due to the School in a E-8