Agenda - Council - 07/12/2022 - Laserfiche WebLink

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ARTICLE VI DAMAGE,DESTRUCTION,AND CONDEMNATION; USE OF NET PROCEEDS Section 6.1 Damage, Destruction and Condemnation. Unless the Company shall have exercised its option to prepay the amounts payable under this Loan Agreement pursuant to the provisions of Section 10.1 hereof, if prior to full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture) (i) the School Facilities or any portion thereof is destroyed (in whole or in part) or is damaged by fire or other casualty, or(ii)title to or any interest in, or the temporary use of, the School Facilities or any part thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm, or corporation acting under governmental authority, the Company shall be obligated to continue to pay the amounts specified in Section 4.2 hereof and any other amounts required by this Loan Agreement to be paid by the Company. Section 6.2 Application of Net Proceeds. In the event of damage to, or condemnation or destruction of, the School Facilities or any portion thereof resulting from fire or other casualty, if (i) the Net Proceeds of any insurance or condemnation award relating to such damage or condemnation are less than the lesser of(a) $250,000 or (b) two percent (2%) of the Outstanding principal amount of the Bonds, and(ii)no Event of Default shall have occurred and be continuing hereunder, written notice of such event shall be given to the Trustee and EMMA and such Net Proceeds shall be paid directly to the Company and the Company shall forthwith replace, repair, reconstruct and restore the School Facilities to substantially the same or an improved condition or utility value compared with that which existed prior to the damage and the Company will apply the Net Proceeds to the extent necessary to replace, repair, reconstruct or restore the School Facilities. Any remaining balance not required for said purpose shall be paid to the Trustee for deposit in the Bond Fund. In the event the School Facilities or any portion thereof is destroyed by fire or other casualty or a portion or all of the School Facilities is condemned and the Net Proceeds of any insurance or condemnation award relating to such damage or condemnation are greater than or equal to the lesser of(a) $250,000 or(b) two percent (2%) of the Outstanding principal amount of the Bonds, the Company agrees to promptly notify the Trustee and EMMA in writing of such event, all such Net Proceeds shall be deposited with the Trustee immediately upon receipt, and the Company shall within ninety(90) days after such damage or destruction(or within such longer period as shall be reasonable under the circumstances, not to exceed one hundred eighty(180) days) elect one of the following two (2) options by written notice of such election to the Trustee (with the prior written consent of the Majority Bondholder(s) during the occurrence and continuance of an Event of Default): (a) Option A—Repair and Restoration. Upon delivery to the Trustee and EMMA of (i) an opinion of Bond Counsel to the effect that the proposed repair and restoration of the School Facilities, and its subsequent use, does not impair the tax-exempt status of the Tax-Exempt Bonds and (ii) a certificate of an Independent Architect to the effect that Net Proceeds and other money available therefor, will be sufficient to complete the proposed repair and restoration, and the proposed repair and restoration can be 24 730911770