Agenda - Economic Development Authority - 05/24/2005

Home

ARTICLE VI PARTICULAR COVENANTS OF THE ISSUER The Issuer covenants and agrees, so long as the Bonds shall be .Outstanding and subject to the limitations on its obligations herein set forth, that: Section 6.01 Payment of Bonds. It will faithfully perform, at all times any and all co venants, undertakings, stipulations and provisions contained in this Indenture and the Bond Resolution and in each and every Bond executed, authenticated and delivered hereunder; Mil pay or cause to be paid, from payments of Rental Payments by the City and other amounts received in respect of the Project or available under this tfidenture, the principal of, premiTM (if any) on and interest on every Bond issued hereunder on the dams,, at the places and in the manner prescribed in the Bonds in any coin or currency which, on the respective dates of payment of such principal and interest, is legal tender for the payment of public and private debts; and will cause such amounts received to be deposited with the Trustee prior to the due date of each inst~llment of principal and interest and prior to the maturity of any Bond in amounts sufficient to pay such installment, to the end that the Trustee may cause to be placed in any other bank the paym(mt specified herein and in the Bonds, on time, money required for payment of principal mxd interest; provided, however, that the principal of and interest on any Bond is not and shall not be deemed to represent a debt or pledge the full faith 6r credit of the Issuer or the City or gr~nt to the Holder of any Bond any right to have the Issuer or the City levy any taxes or ap pro priate any funds to the payment of principal of or interest on the Bonds, such payment to be made solely and only out of the moneys received pursuant to the Lease and this Indenture, including the funds and accounts established and maintained with the Trustee pursuant to the requirements of this Indenture and appropriated to the payment of the Bonds by the Indenture. Section 6.02 Extensions of Payments of Bonds. It shall not directly or indirectly extend {or assent to the extension of the maturity of any of the Bonds, or the time of payment of any claims for interest by the purchase or refunding of such Bonds or claims for interest or by any. other arrangement; and in case the maturity of any of the Bonds, or the time for payment of any such claims for interest shall be extended, such Bonds or claims for interest shall not be entitled in case of any Default hereunder to the benefit of the Indenture or to any payment out of any assets of the Issuer or the funds (except funds held in the trust by the Trustee for the payment of particular Bonds or claims for interest pursuant to this Indenture) held by the Trustee except subject to the prior payment of the principal of all Bonds issued and outstanding hereunder, the maturity of which Bonds or principal installments has not been extended, and of such portion of the accrued interest on the Bonds as shall not be represented by such extended claims for interest. Nothing in this Section shall, however, be deemed to limit the right of the Issuer to fund or refund at one time all of such Bonds and claims for interest. Section 6.03 Authority of the Issuer. The Issuer is duly authorized under the Constitution and laws of the State of Minnesota to issue the Bonds, to finance the acquisition and betterment of the Project, to execute this Indenture and assign and pledge to the Trustee the Trust E:state, including the Project and the Rental Payments, and to make the covenants as herein provided. 101