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

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THE MORTGAGE The following is a summary of certain provisions of the Mortgage and is qualified in its entirety by reference to the Mortgage. The definitions for all capitalized terms used herein not otherwise defined can be found in "APPENDIX I -DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS —DEFINITIONS" or in the Indenture, the Loan Agreement, or the Mortgage, unless the context indicates otherwise. The Company will convey to the Issuer a lien and security interest in Schoolhouse and the other Mortgaged Property as security for payment of the principal of, premium, if any, and interest on the Bonds. In the event of the occurrence and continuation of an Event of Default under the Loan Agreement, the Mortgage provides for the selling or leasing of the subject premises or any part thereof by the Trustee or its assigns, consistent with the applicable provisions of Minnesota law. Net proceeds from such sale or lease will be applied to the payment of the principal of, premium, if any, and interest on the Bonds. All the Bonds are equally and ratably secured by the Mortgage on the Schoolhouse and the other Mortgaged Property. THE LEASE The following is a summary of certain provisions contained in the Lease and is qualified in its entirety by reference to the Lease. The definitions for all capitalized terms used herein not otherwise defined can be found in the Indenture, the Loan Agreement or the Lease, unless the context indicates otherwise. The Company will lease the Project to the School pursuant to a Lease Agreement dated as of 1, 2013 (the "Lease"). Under the Lease, upon the commencement of the initial term of the Lease as set forth in the Lease, the School agrees to pay monthly base rental payments to the Company on or before the twentieth (20th) day of each month in amounts which, in the aggregate, are calculated to be equal to the amount necessary for the Company to pay semi-annual debt service on the Series 2013 Bonds, certain annual fees of the Trustee and the Issuer and fund a Capital Improvement Fund, as set forth in detail in the rent schedule attached as Exhibit B to the Lease. To assure the full and timely payment of the amounts due under the Lease, the School has created the Sweep Account, into which all State education funding sources will be deposited and from which the Trustee shall withdraw the School's payments due under the Lease. In addition, the School agrees to pay the Additional Rent as set forth in the Rent Schedule attached to the Lease, which additional rent may include any and all expenses which arc allowable under Minnesota Statutes Section 124D.11, subdivision 4, including but not limited to, real estate taxes, assessments, or other governmental charges levied or assessed against the Project which are payable during the term of the Lease. THE PLEDGE AGREEMENT The following is a summary of certain provisions contained in the Pledge and Covenant Agreement (the "Pledge Agreement') and is qualified in its entirety by reference to the Pledge Agreement. The definitions for all capitalized terms used herein not otherwise defined can be found in "APPENDIX I DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF E-8